Re: Next week should be interesting
in response to
by
posted on
Aug 22, 2014 11:42PM
Black Horse deposit has an Inferred Resource Now 85.9 Million Tonnes @ 34.5%
I don't expect the press conference to be much more than an announcement that the Devco is now going to begin consulting and assessing the options. There will be a lot of hot air, but nothing firm will have been decided by then.
Expect delay before anything actually is decided about anything, except firm commitments to 'doing it right'. Realisation of the extended timeframe will likely put downward pressure on KWG's share price.
On the other hand, the northern route east-west road will be advancing fairly soon, so there is some hope for movement in the ROF. All those trainees will be looking for jobs in the near future, so area communities will want more than just roads, mine development must begin.
Once a road connection is there thinking will change from regarding the ROF as 'stranded'.
No decision on the north-south road or rail issue will be made yet. Apparently it is difficult to comprehend that a heavy duty road and a railline cannot both be built along the esker, but with CLF still doing badly, noone is really pushing the north-south road, except perhaps some who see a road as better serving the people living up there. They are thinking in terms of a 'normal' all weather road, carrying light traffic.
Fortunately, again, a pipeline does seem a viable option for the production from one or two chromite mines. Also, with the scaled up testing of the natural gas reduction process, we can expect KWG's share price to react to news releases on that.
Please understand, this is all my personal opinions.