Spanish Mountain Gold Ltd V.SPA

SISKO KID ( on a tear in Cariboo )

[Wangotango67]

Now.. obviously,
Sisko kid ain't no kid - rather - well managed company with a whole lotts seasoned personel.

But.. is there timing right ?
No one can predict where gold will go.
And givne the current market i'd say, thier 4 year outlook for Cariboo is off by about 2 years.
Bumping it up by 2 years would do wonders.

Kind of like...
Spanish Mountain, sit to olong and one loses out on the premium gold prices.

Korus Gold - has done thier spinout  - jet set looking all pretty.
But,, still needs lots of drilling.

While - Spanish Mountain - is near shovel ready.
But what to do...?

Dishing out a 1.2 million ounce reserve may look fine to some, but...
Another 2.9/million ounces is kept out of the picture - left in the shadows.

Let's play suppose -
Suppose sisko was interested in Spanish....
They'd fair much better if they secured4.1 million ounces than, 1.2/million ounces.
Meaning -  market reaction to near 4 times the gold would augment thier valuation.

And on the flip side - 
it would do wonders for Spanish's shareholders by recieving max value.

But.. the finding that sweet spot -
middle of the road - sometimes fairs better as an attracktant.

Timing is everything -
Miss the boat on the high gold prices and your s-o-o-l.

Spanish has warrrants still in the closet.
Most aren't rerady for the - cash out till - 2022.
Yet another 1 year wait.

If Spanish played the - sh rollover -
i'm sure the shareholdsers would pull the pitch forks out.

It's a question of... Spanish gold is there....
but, how does one get it out of the ground to show the best economics ?

Two peers nearby have the ability ot handle the ores or a portion thereof...
This is the easiest path to reduce the capex for Spanish or, another.

A takeover would be ideal - without touching Spanish's sharecount  and simply
merge Spanish's shares into another company on a 2:1 basis - such as, Osisko Dev.
And - deal with SPA's warrants separately. Again, just throwing ideas out there.
Osisko would only be using thier shares - and securing the Sapanish ahead of time,
allows for the future planning of the district -  but are they thinking this way ?

Then there's Imperial... off in it's own world seeking copper and gold.
Underground mining. Freshing cashed up - but i think iread they also had debts...
So... is the $775/million already spoken for ?  Hardto say...

But... how long wouldit take Imperial to recive a green light - undergorund mining ?
Could take years for imperial to jump the hoops. Which places Imperial in a stance of,
would they ever entertain processing ores for Spanish, how much would they want, or...
a jv - yet... a jv would seem sort of,  messy.

Does Imperial just let thier plant operations sit idle ?
That's not profitable.
Or... would it be profitable for Imperial to spark it up and say...
Take a percentae profit from Spanish for use of it's equipment ?
What would that price bracket be that inks a deal ?
15 % - 20% - hard ot say....again, just throwing ideas around.

Wouldn't be such a bad idea.. .if it were ever tabled.
Imperial -  is set up with crushers and much more...
All with in a sput throw away from, Spanish Mountain.

It would certainly reduce Spanish's capex incredibly, but on the backside a compensation would have to be dished out -  but.. also at the same time cash up Spanish and provide the funds to perhaps build thier own plant onsite - after a few years... Again, if ores were fed to imperial Spanish's capex would drop significantly affording Sapnish the ability to save their profits to build thier own plant.


Spanish going it alone -- in my opinion - should run with a 4.1/million ounce pfs.
More gold -More profits - Mine longevity.

Running a 1.2/million ounce almost feels like - modelled for another who doesn't want the 4.1 million ounces factored in the price - wink...

what to do, what to do, what to do ?

Each of the companies above have their own set of obstacles.
One is sitting pretty ready to mine - upgrading concentrators - but... a far larger organization which has to plan long term - after Bonanza, after Caariboo then what ?
They'd be backto point zero drilling more of Cariboo...
That's not a very good plan t okepe the momentum going.
Where's the growth ?

Which might favor Spanish all the more - Osisko - fully aware of a proved deposit is sitting
looking all pretty -  and - located just south of the - Cariboo claims.

1.2/ million ounces favors another
4.1 favors Spanish shareholders and also favors another who could benifit with thier valuation
2 peers have equiptment that could reduce SPA's capex.
Spanish could go it alone but... needs financing and would 1.2/million oz attract financing ?
Spanish has an open pit while the other two have future underground plans.

Could there be a 4th option - another who luks in the shadows whose interested ?
Who knows...

But.. if Spanish ever went it alone - found it's own financier...
And put out a stellar pfs report - SPA's stock valuation, could hit the sweet spot.
Which affords all the more access to funding wit, shares.

if there's no nibbles and bites on Spanish... Project hasd been dragged long enough...
Something must pair with the pfs this time round -  to show the company has worked the
other side of mining = financing or partner or, selling.  If they let the warrants dictate the
timeline - then.. much is lost in capturing high gold prices. Perhaps that can be applied
to all the mnetioned names... 

If no pokes in the fire - then... perhaps Spanish should incresase thier reserve size - carve the deposit differently, shuffle the oz around - check into the graphrtics or carbon credits - heck - factor the waste ores that contain upto .40/grams - work this into the pfs as a secondary mine model - extension - adding in more ounces = reduce the expenses = more porfits.

If, a carbon credit was ever plausable - would SPA even need ot seek out another - lol.
I just read another grpahite report - a junior speaking - how their graphite was endowed with
hagh carbon content - so whatr's the real chse factor = carbon.
It wil lbe interestingto see how they assemble the pfs... what will be included, what wil lnot be included... will they rwewrok the gold/ounces ?
Who knows...      

Again... the above post is not investment advice.
Simply throwing around ideas...
Anything could happen in these markets...
Do your own - DD.


Cheers...