Re: Explorer versus Producer
in response to
by
posted on
Aug 30, 2009 07:47PM
The company is now known as FUSE Cobalt.
I remember back almost 3 years now that SGR was becoming Canada's newest producer.
It wasn't long untill the focus shifted to remaining an explorer.... Developing production capability, but producing only a marginal amount of Gold.
Do you remeber the discussions with Dale at each show where the emphasis is always on the oz being found and the minimal cost of those oz.... Building muli million oz nestegg with the intent of being taken out.... How long can a company continue to prove up oz, and develop the infrastructre to produce those oz... stay off the target list of the big guys.
This was the thrust of our conversation about 3 years ago when HM and I sat down with Dale and we talked about this very scenario. Long before the Hinge was found... I mentioned that the scenario was very similar to when Harmony took over REA gold.... That was done with the aid of the bank.... This time the JR is in control of their own destiny. Why consume the oz over the past 3 years when you can provide the oportunity for a major to come into a fully developed trio of mines.... This will comand premium dollars to any exporation play.... But that is just what SGR has been over the past 5 years! An exploration play turn-key production.