One would think that time is running out fast for ASL on Buly South to meet their commitment. Unless they can reach a new agreement soon with PGD to extend the deadline (not in PGD's interest, IMO) or conclude a diferent deal, it seems that they would lose the property. If that is the case, why would they continue drilling and spend more money on this property? The (only?) logical conclusion would be that they have started to make the "bankable feasibility" study or feel that they still have time to do it... The drilling results that we have seen so far do not seem that they are in a "feasibility" mode!
The beauty with PGD/MDN is that they have something attractive to all potential bidders: Anglo and Ashanti (value of and proximity of Tulawaka to Geita+ potential of Kahama and Buly South and their other undeveloped properties) , Barrick (value of Tulawaka (not proximity IMO), Golden Ridge, Buly South and their other undeveloped properties), Placer, Homestake, Newmont, GoldCorp to enter the Tanzania play with a mine (Tulawaka) and a good portfolio of undeveloped properties.
What is also amasing is that the more they drill, the more attractive the properties become: so time is on our side. And even if POG do not increase, production costs are low, and Majors need to add to low cost properties/reserves to their assets. We should get more good news from Tulawaka in the coming weeks.
It is a good time to own these stocks! |
