Hopefully the people that put this thing together counted the costs and will turn it around to being an economic situation. The timing of the gold prices being so low, and the fact that India put a surtax on gold is an unforseen event, something that no gold producer could predict, add to it the India and Pakistan nuclear problems.
What I do know is that the vicinity that Royal Oak is in is quite viable. What I don't know is how far they will truck raw material to a mill. There is a mill in Quebec that they truck raw material 75 miles to in order to be processed. The AGC Americas Gold site is around 30 miles from Kemess. There are now another 60,000 proven ounces there, and possibly more to come with their creek zone. I am sure they wouldn't build another 460 million dollar mill to process that. Don't be surprised if AGC (symbol AGA on the VSE) is bought out by RYO, or RYO is hired to process the material for AGA, currently being drilled by Antares.
I wish these people all the best, as northern BC is in real tough straits right now, and anything that will boost the economy there will benefit all British Columbians.
Hopefully the price of gold will hit $400 per ounce, and then the VSE will come alive again after the Bre-X fiasco.
I hope to go to the annual meeting of RYO since it is in Vancouver, and pose some of these questions.
The problem of the supplier as far as I am concerned is irrelevant, they have enough money to pay off all suppliers from the Trilon deal and this will go away. It seems there are people wanting to play up this negative publicity as much as possible and not release any positive publicity to drive the price of the stock down. When they load up, or have shorted the stock as much as possible, watch it go up.
Just my opinion.
Mike G |
