Hi there OT1961,I agree that SGQ may not actually become a miner...

Hi there OT1961,

I agree that SGQ may not actually become a miner at E29/638. If we listen to JP in the 28 Nov 2019 Video, he really let the Cat out of the Bag about the Cathedrals belt being a potential bolt on for a peer.

There are many scenarios that have been canvased on SGQ threads.

You asked a question about what triggers decision to mine. I don't know the precise terms of the agreement between SGQ and WSA, however, I would imagine that at a point in time after completion of infill drilling and resource definition, the SGQ Board would make a decision to mine (most likely at Stricklands initially) and at that point WSA would lose its free carry in relation to the pre mining costs and other associated mining costs.

A decision to mine is different from commencing mining so at the point of decision to mine, WSA is up for 25% of relevant pre mining costs.

Around about that time, I would expect some possible corporate interest from peer suitors such as WSA, BHP and IGO to materialise and that interest may well lead to a buy out of the Tenement E29/638 rather than an out right take over of SGQ.

JP often talks of monetising the prospect for shareholders and the value of the project could be significant. The AUS$ per tonne ni price plus cu/co/pge credits will be significant. Pick a resource in the ground estimate multiplied by an aggregate price of the metals divided by shares on issue to determine a value of known metal that could be mined and priced in a bolt on acquisition for BHP or another and we see that SGQ would have a bag full of cash that would enable a special distribution with significant cash reserves for exploration at its other tenements.

This is speculation on my part. However, I believe it is a real possibility as are other scenarios.

The 2020 drill program is very important in leading to the outcome that I think will play out and now is the time for those with a decent risk appetite to grab more shares at bargain prices. If the resource definition drilling at Stricklands is positive and if drilling at depth at Investigators and West end find thicker high grade metal, get set for some quick corporate plays.

The other big picture guide will be the results of the metallurgical studies in Canada. Those peers looking for a bolt on will take particular notice.
AIMO of course.

Cheers Mulac1