Re: Two Emails
in response to
by
posted on
Sep 27, 2010 09:27AM
(PRESS PROFILE TAB FOR FACT SHEET & UPDATES)
Interesting points, and I agree that perception is everything, but since we are all speculating, I don't think endless drilling is the problem, but more one of competing priorities and where to begin production to get the biggest bang.
There are a number of sites which offer big resources - and possibly much bigger resources than the relatively more settled and understood resource at Ormsby, Bruce and Nicholas which is the basis of the PFS. Clan and the Goodwin Vad Zone (as Baires always reminds me) are very interesting sites. If production were to start, the location of the mill is a crucial factor in future costs and development, and so location has to be a decision in the mix. Spending $35 million to locate a mill at Ormsby/Nick Lake will delay drilling at Clan, and if Clan has the big resource it seems to have, it would be a poor decision, increasing production costs for transportation and delaying the more lucrative production until later. I would prefer the right decision first time. Ike