RE:self funding to Tier 1...then?I gave my preference regarding this scenario two or three years ago, and it remains unchanged. i.e., I like jt-venturing the porphyry with a major (deeper pockets, experienced in the development and operation of this type of mine), and possibly issuing a stock dividend on the jt-venture to KNT shareholders. (copper reference usually will mean copper-gold, or copper-gold-silver).
This is an excerpt from ''investing news'':
“These are some of the largest copper deposits in the world — most of the world’s copper comes from large porphyry deposits.
Because the CAPEX on these projects will be at a minimum of $1 billion, for a junior exploration company with a copper deposit the only exit strategy is to sell to a major. If the deposit is large enough they can become acquisition targets.” Fulp says the most notable example of a junior-held copper porphyry deposit becoming a takeover target is First Quantum Minerals’ (TSX:FM) C$650-million acquisition of Antares Minerals and the giant Haquira copper-molybdenum-gold deposit in Peru. The development-stage project has the potential to produce over 200,000 tonnes of copper per year. A major producer’s ideal takeover target is a junior explorer with a district-scale copper porphyry project with access to necessary infrastructure, including water, power and transportation networks. Majors are keen on acquiring a project that spans an entire mining camp rather than a small parcel because it limits risk while maximizing opportunities. Controlling an entire mining camp mitigates the potential for outside competition in a region. “If a project becomes an operating mine, the company will need additional land for surface facilities and it is much easier to acquire land at the beginning than during the development phase,” said Korzeb. The geological nature of the copper porphyry model also necessitates the control of an entire mining camp.
The alteration haloes associated with this deposit type are much larger than the actual deposit and can cover tens of square kilometers in a district.
The large scale of the mineralized system in these regions also lends itself to the formation of other types of deposits within the same area, including high-sulfidation epithermal gold-silver-copper deposits, amongst others. The increased opportunity for the discovery of other deposits within the mineralized system improves the economics of a project and is extremely attractive to majors and juniors alike.
K92 seems very positive regarding their hopes for A1, and if it just matches Blue Lake, that could move the porphyry resource to near 22 million oz of Au/Cu equiv., with several more porphyries still to go. Whatever the case, it could be fun to see how the dice fall :)
At the same time, the existing operating mine will continue to expand its resource, output, and profits.