- Not sure I agree on your view of CPQ, I see it as a PM mine
Maybe. Depending on base metals recoveries. I have accumulate some data on the gold content and at one time it was 48% gold. I don't where are now as I stopped the exercise.
- For the oxide cap the base metals won't be recovered anyway as I understand it.
Then it will be interesting to see what economics we get. Because I think the average gold grade might be lower than some deposit I know. Lower than CKG'S Metates, Osisko, Detour.
At the last count, I had an average of 0.69 g/T gold. I've seen some higher and lower grade after I stop counting..so I can't tell where it is now although I suspect it is now somehwat higher than 0.69 g/t.
But the odds are that even if they mine only the gold it will have great economics even at 0.69 g/t gold. It starts from surface and we will have an extremely low strip ratio.
- Meanwhile the oxide and sulphides are richer than Penasquito
That is not the conclusion I reached from my exercise. It was a bit lower. But again, my numbers stopped after 30ish holes. So they are not complete. We will see with the coming resource calc.
- Furthermore, the massive size makes it a mine that could operate for 2-3 decades which again makes it more attractive to the majors. I guess the downside might be Capex and the cost of fuel and power.
I clearly agree with that.
-CFO will have to prove millions of ozs to be a take over, I would be very surprised if that happened before CPQ is bought.
I would not be. They already had 1.1M for a start before they even put a single drill hole. Since last December, thy put in 120 holes or so. All but 4 hit mineralization. Although we do not have yet the lentgh and grades of the intercepts, we can start to do some extrapolation. My guess from the little work I have done is that they could be already above the 2M ounces and more in inferred. I can smell the potential for 4-6 millions ounces on their main property (Beattie-Donchester-Dumico), let alone Duquesne. In other words, their main property has the look of another Doyon. By the end of the year, all assays should be in and a new resource calc will be close. Time will tell.
For sure you might be right, that is why I own both. Goldcorp might make a run at CPQ sooner than it did for Western Silver as it is such an obvious move.
-Any one taking it over has extensive underground access too.
Not Sure. There is the potential for large open pit at Beattie. A lot of the material surrounding the high grade gold runs 0.5-1.0 g/T gold. And if underground, there is already a lot of UG access, including two shafts (one small and one large), hundreds of meters of galeries down to 350 meters. So all they would have to do is clean up and possibly deepen the shaft(s) (depending on where the ore is located) and extend the galeries laterally.
-Does CFO have Quebec Hydro???
They have everything as far as infrastructure goes. It will be much lower Capex than a new operation.
The reality with Beattie is that CFO already know where a lot of the mineralization is. It is a matter of drilling, assaying and computing the resources. Of course, they are testing some concept for a new discovery along the way. Like that 134 meters holes of 2.91 g/t gold. |
