What's Better for Tyhee Shareholders, A Buyout or Joint Venture?

This morning I sent Skeleg an audio file of my next Q-call question to JP just to get his reaction. Here is the Q-question and below it is Skeleg’s response:

"Hola Jim and John, This is Baires calling from Buenos Aires, Argentina.

Jim,

Last year you mentioned that ALL 2 million ounce plus gold exploration juniors will be acquired in a year or two. Could you please, on the other hand, comment on the merits of these juniors entering into a Joint Venture with a mid-tier or senior producer, and how that arrangement would serve shareholders relative to a buyout?

Que tenga buen dia, Hasta luego."

Skeleg's response:

Very good question at this time, as we see gold producers mobilizing cash for expanding their bases through acquisitions and JVs.

The answer will be as follows:
1. Juniors are best at finding gold and having breakthroughs bases on some clever strategy and the hard work and commitment of a few, visionary risk takers. DW's winning strategy is his knowledge of the YK geological context, the DNA.

2. Producers are awash with cash and have ever-depleting reserves. They need to replace them and many believe that they have waited before deploying cash until the junior sector starts to turn positive. Why do it too soon? Now the junior sector has started to turn, as we saw on Friday that investment funds have started to pour money into the gold sector again.

3. JP will say that his original call of 2 MOZ juniors will be acquired within 1 to 2 years, except that his time-lines were interrupted by the disruption of the credit markets and access to financing, and a short-term loss of confidence in ALL investments.

4. JV's add to shareholder value as they accelerate going into production while still allowing the junior side of teh JV to continue doing what they do best, finding gold.

Let us remember that the 10 million ounces that Tyhee has yet to find under the existing deposits, plus other blue sky potential, can't be achieved until a mine is up and running.

Scenario. Kinross or perhaps a mid tier comes along and offers Tyhee 400 million for a 50% interest in YGP, such that tyhee continues to do exploration at the same time as accelerating the mine timeline. This will save us a year, and construction would start in 2010. At the same time, exploration would greatly accelerate, with 5 drill rigs turning continuously from the start of the JV. Giving news releases and ever-expanding resources and perhaps new deposits discovered. Shareholder value will rise faster than without the JV, as we grow at more than twice the rate we would have on our own.

Far better pay-out for shareholders than a buy-out.