morning,
agree, it was a very interesting article, indeed, I found it fascinating.
Whilst I trust the strategic brilliance of mining company boards about as far as I can spit into a gale --------- I do have to think -------------- 'what are they thinking?'
These guys must either have far too much money than they know what to do with (eg. who spends 2 million on a hole - which may or may not show something) -
lets say they got some good numbers ------- not spectacular - but, good ---
what then?
Flog it off to some really big company?
Drill some more 2 million buck holes?
Put it in the drawer and occasionally say 'see, I told ya' or 'look what we got (buggered if we know what to do with it though)
One thought came to me - that also came to me the other day (all related to Breaker in a way) -
was that ------------- is NST expecting a whopper rise in the POG?
If so, then, how far in the future are they crystal ball gazing? -- or are they really doing homework and looking at numbers for the future that are almost not in dispute?
A rise in the POG to say 5K an ounce - could well justify some 2 million buck holes in the ground - if you 'really' thought that gold was going to take off big time -
aside from that --- ???? buggered if I could see the value in such a hole.
And, then - lets say that you gazed into your crystal ball and did see the POG at 5k --
and, you drilled you hole and you got a really big hit?
What then? -------- it's one thing to drill a hole - it's another thing to drill some more holes -
but, you can drill hundreds of holes - but, - then the biggest question comes up at 'that stage'
and, the question is the same as above -- 'what then?'.
Because - getting a mine going at 2 or 3 kilometres under the deck is not the smallest entry in your diary -- it's a really really really big deal.
Unless there are some new techs re. say in situ recovery that I don't know about -- well, that would certainly change the game - and, has been talked about for years -
ie. put a couple of holes in the ground - shatter some ground deep - pump some gold dissolving fluids down one hole - catch em when they come out of the other hole - and, Bob is the Uncle --
that would work - and, it might solve the HUGE issue of sending machines and men down into the bowels of the earth at enormous expense.
Now - why did I think about a large POG rise the other day as well?
Newcrest
The article that said they had paid?? what was it -- over $300 million per 1 million ounces in the ground --
now -- I like Newcrest - why? - because they pay too much -- regularly.
Indeed if they were in the media business - Kerry might have got more than one in a lifetime.
But, why did they pay so much? - Is this coincidence that NST is now funding a very deep hole?
Are both of these companies reading from the same POG playbook?
Is Neil Charnock finally going to be found to be correct in his prediction that gold will go to amazing prices in the next years?
If so - it justifies all that these first movers to a new level are doing.
If so - then, it's big news for Breaker - who have the project we know - and, if it is indeed a Tier 1 - which will come on line probably in the next say 5 years in a serious fashion and then run for at least a decade - possibly decades.
If it's all true - then, if Newcrest is paying over 300 mil. for 1 mil. in ground and NST is throwing 2 mil a pop a hole to find a biggie kilometres underneath -
then, Breaker won't be worth 100 million - we could easily multiply that by a lot - so much that I am not game to hazard a guess.
And, we can't put it all down to speculation - sure NST and Newcrest might have been drinking from the same toxic well and both their brains are effected -- and they might be dead wrong - but,
the facts are that they have and are putting the bucks on the line --
the question is
why?
have a great day all
