Thomas:
We have not received formal notice that our two primary COWs have been approved. However, we have been told so verbally. We are awaiting the formal notice and signing, scheduled for Feb. 17. At the same time, we remain cautious about proceeding in Kalimantan, not because of anything new but a) because of the market's unease with the area; b) because of the upcoming election (and likely riots); and, c) because this is not where we are planning to put our short term cash.
At the same time, Barrick remains our partner in Indonesia. In fact, this is their only play there, the only place where they have remained. We keep them informed, in detail, on what we have done and are doing and they are very happy with our project, especially the primary silver and gold targets. You must remember though that exploration costs there are ours -- not Barrick's -- to absorb. Under our agreement, if we find a large deposit (750,000 oz Au), we offer it to them and they either take it (paying 100% going forward, leaving us with a free 25% carried interest) -- or, they give it back to us, 100%, at no cost or trade.
As I've said before, Indonesia is almost certain to produce a major precious-metals deposit one day -- once the market is willing to let the companies operating there get back to serious exploration.
Meanwhile, we're busy with our other "silver play" in Santa Cruz. News within a month, I hope.
Greg |
