Crux Interview Recap Solid interview. Crux asks all the hard questions as usual.
- Reid discovery is 90% of Crawford yet has almost double the size left to drill up.
- 33 of 34 drill holes hit the same mineralization of Crawford increasing success rate of other 42 sq km left to drill up.
- Drilling increases the district scale needed to attract the majors.
- Comparison the BHP Mt. Keith at .5 % but they have much higher costs versus Crawford's better location to hydro etc.
- BHP attempted takeover of OZ Minerals main project is .3 nickel as well as .3 copper but is way out in the center of Australia 1000 miles from anywhere where costs are much higher. BHP sold it 10 years ago and is wanting to buy it back.
- Comparable to the best base metal mine in Scandinavia is operating as low as .2 copper due to similar infastructure to Crawford at similar scale.
- 85% thru feasibility study. So year end on track.
- Auramet loan in order to do engineering and permitting work during winter.
- Loan was better deal than going PP with warrants at 10 to 15% discount. Expect next financing will have none of those high priced attacthments.
- In discussions with startegic investors and expect to see good news on that post feasibility.
- Hole 5 to feasibility in 3 years faster than any other company.
- Korean companies need 500,000 tons of nickel = 10 Crawfords.
- CNC could have up to 12 Crawfords which is the exact kind of scale a BHP or Rio Tinto wants to be involved in.
- Takeout prices of world class base metal assets go for 1.2 to 1.5 X NAV or greater for projects with massive expansion potential versus .8 to 1 NAV in a multi bidder scenario. IE; Noront.
- If bidder steps up and doesn't want to pay up for full value for Reid due to needing more drilling still, then they will sell off Crawford and keep Reid and the other 20 properties and repeat the process increasing shareholder value.
- Reid is even a better shaped deposit due to it's square shape to optimize the stripping ratio.
- Expects share price to exceed $4 high and further once markets begin to turn around.
- In discussions with a range of strategic investors
- Mark is off to Korea in the middle of October to "continue discussions" with large mining companies, car companies, "real" private equity firms. (NOT "high cost" private equity firms which most are).
- "Lots and lots of discussions going on right now".