@crom - much respect and gratitude for your generous posts here, they're always full of wisdom and balance. There might be some truth in what you are saying, time will tell. No doubt you know all of the below, but I'm sharing my position below here for some balance for other readers.
Many investors here are following Paul Adams board presence on MEK, following his work with Spectrum Metals (SPX).
In 2015, what was then known as Spectrum Rare Earths (SPX) made the strategic pivot to get out of REE and they survived the explorer graveyard only by a thin margin. Simply, it was non economical to chase REE deposits. SPX had been languishing since listing in 2007 across a period where China based producers realised a decades long ambition of dominance. At the time Molycorp Mountain Pass in California was a peer leader with a MC of 700M (Molycorp went bankrupt in 2015, but Mountain pass re-emerged in 2017 under MP Minerals and re-started production in 2018); Lynas at the time had a 400M MC (as we know, it is now a western domiciled leader with ~8B MC). Generally speaking, it was a dearth winter across the REE sector.
When Paul Adams left his position as MD of DJ Carmichael to become MD of Spectrum Rare Earths in 2018, the pivot to gold was already in motion. By taking on SPX, he'd know only too well the foibles of the rare earth sector. In turn, SPX became Spectrum Metals, then came the Penny West gold discovery and the rest is history.
Maybe I'm alone on this but I'd think that Paul Adams knows only too well the risk and reward of REE engagement across CV and Cascade, especially given the history of Spectrum Rare Earths / Spectrum Metals. For those that are here backing Paul Adams, there has to be some merit in the counsel and oversight that he would be bringing to this project from his seat on the board. His experience and voice carries significant weight, it's hard to believe MEK would be pursuing this without his endorsement. He has a history of being involved with projects that are not bereft of strategy, or a waste of time. Consistently, there is a genuine intent towards reaching development. I am far more comfortable in the pursuit
towards REE knowing Paul Adams has a voice on this, given he was an instrumental part of SPX's successful pivot
away from REE.
I see the REE as a cheap bonus exploration target that is so early stage it does not cause overburden as an exploration asset. The risk of pursuing it at these early stages is undersized for the reward, if there turns out to be an economic viable pathway to production. I have much respect for
@setfire2thehive am grateful for all the science grounded insights he brings across REE prospects. I find myself in agreement, MEK's REE opportunities need to be proved up by science and market economics. Like a lot of other explorers, they are a long way from that (especially on economically and environmentally viable method of leaching of REE) but that's the stage of exploration that we're at.
Science and economics both stand in the way of MEK's REE pursuit, but as a junior explorer that's the gamble (as it is for others in our region). The science will be tackled through the MET team and partners, the economics will be determined by the ongoing resource discovery and the shape of future REE markets. It may all amount to nothing. At this stage, I'd rather be in than out - the overhead cost is very little, leveraged by the expanding gold resource. We are blessed to have that duality, in my view our investment exposure would be higher and far higher risk without it. That's where MEK has a distinct advantage over other regional explorers that are single focused on REE.
The argument of distraction / dilution of strategy by pursuing other elements than gold is still not black and white. Other examples, such as CAI (I don't hold) have a range of different voices and opinions that point to causes of SP suppression. From an outside view, it looks primed for SP recovery especially with bullish tones on gold that are prevailing.
I'm here for the gold and the high quality of the management team. Murchison is going to be a monster resource and CV is a promising but unknown quantity. The gold resources will make this company, and if the REE works out, it will be a cherry on top. TD did an interview recently where he referenced spinning off the REE in the future, perhaps for the very same reasons you are putting forward. I'm not against that, providing the position of shareholders is considered and afforded some advantage. If it happens by that stage, I would think that the REE opportunity would be at a proven state.
Irrespective of whether the REE is in or out, I think MEK's gold deposits will be impossible for the market to ignore. I'm very happy to be patient and continue accumulating. Companies and resources like this aren't a flash in the pan. You can see the way its building on the chart. Incremental slow build to what some will discover as an 'overnight success'. But for those of us watching, it has always been there right in front of us this whole time.
On all fronts, time will tell. As always, thanks for all your contributions here - I'm wishing all of us success!
