“While obviously we’ll work around any meaningful exploration work Gold Fields is undertaking, we owe it to our shareholders to expedite the drilling on these tenements so we can realise their full potential in a timely manner.”
I like this as it provides an indication that BOTH CQT and GF may soon be drilling the regional tennemants. All we need is one strong hit in the regional tennament area and CQT will be massively rerated.
I would love to know what matters the expert is required to decide on. Maybe CQT is going to argue that GF has repudiated the JV agreement by "exploration" activity such as geological drilling (drilling not expected to hit resource, but conducted to give a general understanding of the regions geology) when it could have been drilling the hot spots which would have facilitated the estimation of JORC compliant reserves. If GF has a good understanding of the geology which is similar to other hugh deposits around the world, they may know where to look for the mother lode... but they may have decided to keep the drilling away from this area.
It looks like GF was off doing its own thing under the guise of "JV" activity. You may recall they even shot a hole (or holes) in the hot part of silver hill. It looks like they were doing all the preparatory work which would not result in an increase of CQT's share price, with the objective to take it over. Even before GF entered into the GF area, CQT had a few areas lined up for drilling in the regional tennament areas and it has been dissapointing that GF didn't drill these hot spots.
I personally feel that GF will bid for CQT sometime soon (it must!). The longer it waits the more it will pay for this great asset. There is also the expectation that the price of gold will increase. This will all add to the price GF will pay, and an increased price for gold will also make it so much eaiser for CQT to raise funds to get into production and drill the regional tennament areas.
CQT Price at posting:
76.0¢ Sentiment: Buy Disclosure: Held
