RE:RE:RE:RE:RE:O Brien & Perron: where is your explanation ??!Realnews wrote
Sclarda - Thanks for spending the time to breakdown the simplicity of why this deal was good for PVG. There are muitiple small cap miners out there with low grade and high reserve potential mine sites but the cap ex, permits, location, environmental hurdles will probably make them never realistically developable at current or much higher gold prices. Just take the money and run. Put the money into debt reduction and further expoloration of high grade sites already known on the property. Let's just try to simplify this operation and drop the pipe dreams for now.
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Completely agree. Why would PVG spend years trying to develop a huge capex with a.5 gram per tonne gold grade like Snowfield when they could use the $120 million USD from the Snowfield sale to explore for more high grade gold in their existing large land package to expand the current resource. If they could find another 10 years worth of resources through exploration that would allow them at todays gold prices to cashflow another $3.3 billion CDN. in that 10 years without spending a penny on capex as they could use the existing plant.
This would meand PVG could run its mine for decades to come with no debt and huge cashflow coming in every year. That would allow them to look at purchasing other properties or even better producing mines which would bring in cashflow right away instead of having to explore, permit, finance and build a new mine from scratch.
These options sound a lot less risky,much quicker to develop with a lot less capex and more profitable than trying to develop a large, huge capex low grade, remote project like Snowfield.
And for those who are in love with Snowfield they can buy all the shares of Seabridge they want and wait for the big payday that is likely just around the next corner or two.
Personally i would take my chances with PVG and their huge cashflowing soon to be debt free existing mine with its 8 grams per tonne production than the frozen, remote, huge capex gravel pit that is Snowfield.