Does anybody knows the details of the "Scotia study" done by Venz on not just LC, but the whole KM88 complex? I have GLDR's "version" of the economics.
The jest is that in order for this hugely prospective KM88 district to be developed, a billion dollar capex is required. It would combine GLDR's Brisas, LC (the main components), and perhaps the land holdings of KRY, and Vanessa (?) to produce one and a half million oz Au, and 137 million lbs of Cu a year, at cash costs of 109. The high production (and low cost) is necessary to capitalize the capex. There would be an aggressive district wide exploration effort conducted as well to ensure a multi-decade mine life. If you've noticed, the stock prices of all four of those companies has been strong lately.
It is obvious the Venz is thinking big, not small. They want the whole KM88 district developed, and the top politicos envision one of the largest operations in the world. It's THE major economic development instrument for developing Bolivar State. There is no interest in tiny little mines. The talk about KRY's 400 million might put them at the table as a partner, and perhaps their involvement and interest has done so. What, I really question though is where does little KRY comes up with that kind of money in this environment. Venz. isn't go to screw around with just attempts and promises to raise money in a capital starved resource market. There has to be someone else in the picture to carry the main load. I'm thinking RTZ, maybe NDY/FN, or ANGLY. I'm leaning FN/NDY.
My SWAG: One of those larger companies commits the bulk of the one billion. Venz kicks in their percentage, and KRY commits a hundred million or so (the real world), and settles the LC 4-6 dispute for a piece of the action. Anybody who thinks KRY gets the whole LC deposit is smokin something. Finally the economics is enhanced by incorporating the nine million reserve and resources of GLDR's Brisas, which will be bought or given carried to production consideration for another share.
I have no idea what this screwy PDG/ Vanessa deal is, unless it allows PDG to retain a small stake in the big project as a negotiated settlement to clear title and holding issues. |
