This is Chaarat Gold, operating across the border from China.
Shandong have been talking to these guys for some time as we know, and there was a feeling that talks had ceased when there was a major change at the board of Shandong earlier in the year, but I believe that Shandong have asked for a definitive feasibility study to be carried out rather than the pre feasibility that was available to them at the onset of their interest.
Bigger Companies seem to be insisting on definitive feasibility studies these days because they are more factual and carry far more weight, and these are being carried out as I post by various experts in the field for Chaarat Gold, which the CEO believes will hasten production and be ready for scrutiny next year.
Talk on the Forums for Chaarat Gold is still excitedly referring to a Chinese takeover which will almost certainly increase Chaarat's sp if they do.
Everyone here knows by now that I am deeply concerned about any talk of acquisitions whilst the pog is unsustainable to profitable operations for most targets out there.
Having said that, this definitive feasibility report will not be completed until around mid 2014 and production costs of $500 or less (according to CEO) would probably encompass all but a complete collapse in the price of gold by then.
Conversely, pog staying between price parameters of $1000 to $2000 or higher in the next twelve months would give a producing Chaarat Gold a very healthy profit even at the lower end of the pog scale.
This is all just my opinion and I could be completely wrong, but if an acquisition HAS to be made then they could do far worse than Chaarat Gold which ticks all the boxes for me.
FML Price at posting:
1.5¢ Sentiment: None Disclosure: Held
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