Canarc Resource Corp Deal, page-8

Plough, you make a good point about the concentrate transport issue, but surely it is not a major hurdle?
Its just a barge down a 10 km stretch of river. Considering your background do you think the numbers present see realistic transportation wise?

I think the more important point (assuming the environmental issues are dealt with) is indeed its incremental optionality. For very little outlay, PGI gets to prove if the project is viable. A maximum of approx $3 million U.S for the next 20 months, then a bigger payment of $5 million. It in no way slows PGIs main project nor effects its financial viability. Also, as the announcement states, more projects are already being looked at, plus the possibility of purchasing concentrate that already exists. That would obviously be the most time saving option.

I think the projects metrics are amazing, but hey, I guess $50 million a year in profit before tax for 10 years is pretty boring. Of course, a lot as to happen before that occurs.

One interesting thing for me, is PGI has suddenly gained a 'option' over the Canadian project, which IMHO already has some good numbers behind it. If the POG does change substantially in future years, PGI is basically buying 50% of the project for U.S $8 million. The resource is higher grade than DRMs.

btw - even if the resource does grade down a little, going from the announcement, 90g/t instead of 100g/t is not a big issue considering the profit to be generated.

Lastly, I am actually excited to have PGI drill some holes after 5+ years. sigh... time is just flying by.