Hi Claude,
With respect, I strongly disagree with your thinking re: a jv. program. Here's why.
1. Many think a major being involved implies an endorsement. Without serious up front money, it doesn't. All PLY would become is a line item on someone's exploration budget.
2. All majors so far have wanted all the ground. I can see why but what does that leave PLY if major conducts a half-hearted program. Not much! Another reason why PLY needs serious up front money as assurance.
3. A jv. with a major does not lessen the risk. If they find nothing, PLY will crater. However, if drilling is successful, PLY's reward is drastically reduced.
4. As geological stories go, this is a pretty simple one. There's not much in technical expertise a major can bring to the table now. If they drilled, they would use the same local drillers that PLY will use. If PLY has adequate funding, they will drill as many holes as any major and possibly more.... and PLY WILL have adequate funding.
Lastly, I can think of several companies in joint ventures who were successful. They made great fanfare of the major's status. Sounded great but truth was it killed junior's prospects. The discovered assets became an attractive item on the major's balance sheet.... while the junior eroded away.
If successful, PLY may want to deal with a major, but why now? Other than for a few bucks, what's the compelling reason? That's why I hope they drill alone... and if another small PP with a 4 month hold is required, so be it.
Bob |
