RE:Today's Sedar filing for the quarter shows continued
HHHAPPY wrote: revenue from the oil fields of Australia. This revenue justifies the dividend policy of management.
Only question I have is why have they not advanced the Chu Chua mining prospect in B.C. If it isn't viable than why sustain it?
Just asking.
I've looked it up and mapped it out, the property is on the side of a small mountain area, beside a small town with a rail line running through it. There are several minining claim properties in this area most with just a dirt access road to the properties and some areas are cleared of trees, the specific property of Chu Chua has a road coming from the south east below the property and has a small field of trees cleared.
They have yet to do extensive testing of the area and viability of a mine, the inference that it has very good potential is from a tested property not far away to the east (I think south-east) that has same exact same initial geology. They have done minor testing but not the major testing that is needed before a mine is placed.
It is likely from the company perspective that they do not want to get into mining themselves, they would rather someone else do the leg work and they just collect royalties as the property owner. That is likely similar to many of the claims in this area as most are smaller owners but a couple have larger players that are capable and going forward with testing to the east and north.
Also to start a mine in this area there is a bunch of infrastructure to be build including: rail upgrading and likely a spur created, general road work to create quality access, power supply, construction of a mutual use processing facility etc. Currently very little is avalible to be worked with, it just has very large potential.
It's far as I know it costs them nothing to hold the property, maybe just minor ownership taxes/fees, so there's no reason to not keep it at the moment. If the area gains momentum and a move to produce comes along, they can gain a ton.
If resource prices climb enough, I'm sure there will be interested parties as it seems like a very strong area of potential of resource gathering for the future.
That's all I have hope it helps, someone else have better or more correct info please jump in.