Although there is some merit to the issue you raise, I still don't entirely agree with your conclusion. It is the size of the deposit, combined with the grade of the ore and the economics of production, that will determine whether or not this project comes to fruition or whether the others are brought out of moth balls, as the base commodity price increases.
Like any other exploratory project, if you have a marginable find you may be SOL, but if you have a particularly good find, you may be economic at whatever level. In addition, a deposit that is marginable at current commodity levels, may still be of value as a saleable asset, to a larger company. Especially if they use their "in the ground" assets, as line of credit leverage.
Then there is the question of being "in play" which you have suggested before that you think is all JNR is good for. We appear to be coming back "into play" and there may be a trading opportunity regardless, although I am typically not really a trader.
Salut,
Leigh McBain
PS - thanks for the healthy debate Tango, I appreciate it, makes us all think about what we are doing. I hope you had a good holiday season and let's all hope for a strong '99. |
