To: Interested Re: Message
"Greg I.m hearing that mining companies in Chile,Argentina are having a difficult time with obtaining permits to continue drilling and mining. Can you fill me in on how this affects YRI and what is really going on in Chile. Can we expect any news over the next week or two on the finacincing and drilling results?
Thanks"
There are no particular problems that I am aware of concerning land or permits etc. in Chile or Argentina, beyond what I'd connect to normal operations.
As Argentina has almost no mining history, things there are still evolving. But they are clearly going in the right direction. For instance, Argentina allows you to establish land ownership as well as mineral rights. This is similar to the situations in both the US and Chile. Land ownership does NOT go with mineral rights in many other places such as Indonesia. The latter situation CAN create access problems for exploration and mining companies.
There are a number of companies that are trying to get into Argentina for the first time but which have not either hired a good local associate who knows the system or has not been able to figure it out.
A third challenge in Argentina is the fact that infrastructure is limited so it may be difficult to get a drill, let alone a qualified drill contractor.
Chile, on the other hand, has a very advanced mining code and a strong infrastructure. The greatest challenges in that country might include:
a)Mineral rights must be renewed every two years so you have to be careful to keep your rights current (Yamana has a computerized system for tracking this, which has been how we were able to pick up several of our Northern Porphyry Copper Belt properties. In many cases, we staked on other people's ground -- SOP -- and when their holdings expired, the ground became ours.)
b)The government's mining company, CODELCO, which used to be Pinochet's personal bank but now is quite legitimate and even a potneial partner for some, has a vast amount of land and so, with the relative rush for properties there, getting land is often difficult.
c) Several areas are difficult to work in -- I was up at 4,800 meters, about 3 miles last week at Collahuasi, in the Northern Porphyry Belt and that was tough -- or have never seen a rock hammer, so this creates a different set of problems.
d) Land positions in Chile are normally limited to about 3 square kilometers / property so that, if you want a larger area, you have to pull together tens of different properties. (In Argentina, we have single properties that cover 100 square kilometers, for example.)
We are suffering no significant ill effects from any of these challenges because we are well established -- especially in Argentina and increasingly in Chile -- and we have good local people who know the officials and the rules and the geology. We are one of the well-known companies in Argentina and we are getting good feedback in Chile.
Put more simply, there are no special problems which cannot be solved with having the knowledge and the people to deal with them... SOP in emerging areas of the mining world.
Specifically in Chile, we've now had three majors come to the data room regarding the NPCB and reactions from the first two -- I've not spoken with Gordon Siddley today about the third visit -- have been good. One of them said: "If it were my decision alone, there's no question I'd want to do a deal." (I'll not argue whether this was genuine or disengenuous, because I don't know.) I can't say much beyond that because the proof will be in the offer, if and when it comes.
We also have two companies who have formally expressed interest in El Indio and I hope we'll have property visits in the coming month or so, once access becomes possible. (Heavy snow now.)
When will we have news about Chile, or anything else? Our focus at the moment is on the financing. Since the markets have hit us so hard over the last several weeks, we have a very tough challenge ahead of us. (Witness this thread, for example.) While I can't really put out anything now in the middle of the financing, I do hope to have some project news in early December. The same should be true a week or two after that concerning the financing. I can only assure you that a lot is going on.
Drilling at Martinetas is going well. I hope to see a resource calculation by the spring, if not sooner.
Ditto for Paraguay.
We're actively pursuing JV's in several areas. Making progress. Could be days, weeks or months more.
Field progress in the NPCB is on target.
Indonesian COWs still appear ready for signing before year end.
The PNG drilling, which re-started three weeks ago, is giving good results (ie. we are seeing the right indications). Now that we have taken over the exploration and drilling program, we are making an average of about 75 meters per shift, up from an average of 7 meters. Assay turnaround there (an in some other places) is still slow but I hope to have results from PNG in December.Other results possible then too.
Sorry I can't promise anything in the next week or two (although, if anything material happens, I'll announce it.)
I hope this helps.
I'm off to Europe on Saturday morning. Toronto next Saturday then back to Spokane on the 3rd for the meeting on the 4th with Barrick.
Greg |
