HIGH-GRADE NI-CU-PT-PD-ZN-CR-AU-V-TI DISCOVERIES IN THE "RING OF FIRE"

NI 43-101 Update (September 2012): 11.1 Mt @ 1.68% Ni, 0.87% Cu, 0.89 gpt Pt and 3.09 gpt Pd and 0.18 gpt Au (Proven & Probable Reserves) / 8.9 Mt @ 1.10% Ni, 1.14% Cu, 1.16 gpt Pt and 3.49 gpt Pd and 0.30 gpt Au (Inferred Resource)

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Message: Drilling
Owning and operating your own drills has big advantages when drills are in short supply but that isn't the situation right now. Drill rigs and crews are readily available. The reason drill costs are high in the ROF has to do with the distance that everything needs to be air freighted, helicopter support for moving rigs and personal around, FN "tariff", and camp costs. These costs are more or less the same whether you own the rigs or not. Strip out the cost of steel, bits and consumables which are the same if you own or contract and there isn't much different. Yes you would have more flexibility and yes you would save the profit the contractor makes but I suspect that is razor thin right now.

As to having drills turning non stop there are several reasons that has not happened. The top two are FNs and FNs. With development on hold until there is a Government/FN agreement there is zero impact on the share price for addittional discovery but there would have to be significant low price share offerrings to fund it. The second FN issue is that all exploration permits in the area where being held up until very recently.

... Been There
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