Ron, Preliminary indications are that the press release is Positive.
I'll preface my comments by saying that I'm not a stock broker; just a stockholder looking for a handsome return on my investment in Canuc again. Having just done my incometax, my records indicate that I waited since 1993 for the last rally (last summer). Something tells me that I won't have to wait that long this time.
Of course Placer Dome is a top notch company and as stated in the press release is quite knowledgeable about the area. Without knowing much about the area where the resource is, it is hard to tell when production will start. If the PR is taken literally, it could take as long as five years. Now PD is having a little spat with Crystallex in Las Christinas (Venezuela); but whether this will be resolved soon is anyone's guess. The Ven government is anxious for a resolution to the dispute so the jobs could get rolling. If not, is Canuc's property the alternative? Who knows? If it is, then you may get to revisit your $4.10 price sooner than later.
If I guess right (or remember what was said in the press release), they're looking to develop a huge open pit operation(low grade at high tonnage). This probably means an Omai type scenario. In this case, and with a rising gold price back in the 1993 rally, Cambior's partner, Golden Star (30% owner) shot up to over $20.00. It would be nice in this case; but who knows? No two stars are alike. There is supposed to be a small mill close by. This could give them some cash flow while going through the bankable FS.
One thing is for certain is that Canuc's management, (especially after that bad experience with the two poor drillholes), is not going to rush into things. In this incident, they did not point out to the assay lab that there was VG in the samples and the "wrong" assay procedure was used.
One of the earlier posts suggested that a release of drilling is due within two weeks. This could be a rally point. On an earlier post I indicated what Northfield estimated the Canuc resource was (not sure if that was for the whole property). If infact that is the property size. The PR suggested that warrants to be exercised in a year suggest $US 4.50 so you might have to wait till then.
In summary, I submit to you that a play on Canuc is not a get rich quick scheme/game. I would guess that based on the way that the deal is structured, that it would be a slow but steady climb up with spikes along the way from the release of exploration and/or development news. Because we are dealing with a well respected major an an "unknown " (to the mining community) junior listed on the Canadian Dealing Network, it will take some time before the market gets to appreciate the tremendous opportunity Canuc represents.
I invite comments from the "brokers" and others on the thread. Especially on my usual weekend question, What do you see in store for next week especially after such a intimidating press release? I agree that we needed an executive summary for the G&M, FP etc, because Canuc is not known for getting the message out. They would like the facts to speak for themselves.
Cheers Winzer |
