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Morning Boffin, I think that in one interview it was said that it will cost $20-30m to fully prove up Creswick.
With a strike length of 7km I would think that part of it would be proven first and then start to be mined while they prove up the rest of the resource ...therefore the in the ground would be partially out of the ground and the value would start to be realised, although this will take a year or two.
I think that we will give a majority take (70-80%) to a farm in partner, lets for fun say Newmont, who will take the same % of the costs.
So they could initially prove up a half to a third with their £7.5m+ our contribution (so let's make it up to £10m) and then start mining then the real big value will start to be realised. If we start mining phase one then this will fund phase 2 (and some !!!)
And I can see that , if the resource is proven to the levels that we hope, that the partner would look to buy us out of our remaining share.
All pure speculation, but for a $5m mcap company , the scenario above would see ECRs share price in a completely different ball park to where it is now.
It will be interesting to see what the Ballieston deal offer is and if ECR get whatever they asked for (and prove all the naysayers who said we should have just taken the first offer last year wrong).
I am not going to even speculate on what the shape of that deal will be, but agree that a nice cash injection to help strengthen our Creswick resource estimate & bargaining position would be good.
Brasso3. Quite right! without a JORC standard resource survey estimates of what may be in the ground are highly speculative. And we should remember that even with a JORC compliant probable resource survey minerals in the ground are most usually valued at between 0.5-2.0% of the value of the Mined,Refined & Sitting in the warehouse value.
Just as an example lets use a 1% figure that would mean that gold ingots in the bank worth US$1700 per oz are worth US$17 in the ground. Then lets just take Craigs 5 million oz speculation at Cresswick. Then, with a good JORC survey it could be worth circa $75 million in the ground. Trouble is we don't have such a validation and it will cost many millions to get one for the whole Cresswick license area and will take a couple of years to do. So whats Cresswick worth now based on the small amount of real data we have? Well for anyone reading this your guess is as good as mine! But I would be surprised if any mining major put it at more than around 10% of Craigs resource guestimate ie $7.5M. Of course I will be wrong but that's the order of magnitude we should perhaps expect.
So what to do in order to maximise the value to us shareholders? Well personally ( and yes of course its only my view from 12,000 miles away) but I would try and get a decent amount of cash from a Balleston "buy in" and spend much of it getting a JORC compliant resource on at least a part of the Cresswick license area. Then we can negotiate from strength.
Unfortunately, a good prospective resource alone does not make a great company. This management team has failed to deliver to current date. Hopefully a strong JV can be done to move this forward and establish a JORC compliant resource.
And the gold price is expected to rise considerably over the next couple of years so the dollar figure may rise!
Assuming the estimated resource is as stated worth 8 billion dollars then at current prices that equates to 124 tons of gold !
This is an eye watering amount. After all associated mining , refining and admin costs plus a % share to our partner(s) this is potentially massive.
You question why Craig and David Tang own such a small percentage of the company well maybe Mrs Brown and Mrs Tang are stuffed with shares! Just a thought.
GLA
Thanks Brasso...I was unsure which is why I asked for clarification.
Now go and find someone else in the school yard to bully.
...because the resource is so big!
If the resource is so big why do Craig Brown and David Tang only own 1% of the stock?
Talkingsense
The below statement you make is a contradiction with your username! To make a suggestion like that is beyond ridiculous!
"From memory I think Craig Brown said there was potentially 5 Billion oz at Creswick (someone please correct me if that is incorrect)"
I lied...it is actually potentially a 8billion dollars resource @Creswick (still massive!).
Just over 5 minutes in on the link below on the Craig Brown interview from April...but woth listening through the whole thing
https://www.share-talk.com/craig-brown-chief-executive-officer-of-ecr-minerals-plc-interview/#gs.95kwap
Hi TS .... "Craig Brown said there was potentially 5 Billion oz at Creswick"
Is that serious ? if so can you provide the link / article
Cheers Dill, and thats why my shares are going nowhere until we get a Creswick deal over the line and get the resource proven up to a good degree.
Even if there is only a fifth of that amount then we potentially have a £5m mcap company sat on a BILLION oz resource.....A little upside anyone?
you are correct
From memory I think Craig Brown said there was potentially 5 Billion oz at Creswick (someone please correct me if that is incorrect)
Onedayrodders, we've hot to be hopeful that the confidence they have in our main licenses is well founded.
Baillieston has been proven up to a couple of 100k oz and in one of the previous interviews he was talking about a huge resource at Creswick. If Creswick is as big as expected then he is absolutely right to ditch the others and concentrate their effort on the main two.
If Newmont are sniffing around Creswick you would think that there is something incredibly substantial there.
In the interview he mentions selling off a few licences to FostervIlle South but retaining the best one.
Considering Fosterville have multibagged this year alone, I'm hoping he is right otherwise could be a big mistake.
Now were talking.....massive cahonas!!!
.....yeah, and we want deals the size of massive cahonas and not "peanuts"
I`m a man that demands RESULTS..... and if i have to shaft people well in good its only business....I`m fed up of this sweet talk and lovely interview preparation and SP dropping.....ENUF IS ENUF!
ACTIONS SPEAK LOUDER THAN WORDS..... DEALS NEEDS TO BE DONE!!!!
Well its less than 24 hours after the interview so I would have been amazed if we had a announcement of a deal.
They are not going to open the email then immediately hit reply and accept.
I have to say Dill that your behaviour over the last day has been surprising to me.
Ha ha ha, fair play Dill I did get a chuckle out of that one.
I do get as frustrated as you sometimes when CB does his excitable interviews only to see the sp retrace back down because of delays and the following silence.
It does seem like there will be an offer of a JV soon`ish so maybe not much longer to wait, but be aware that there will be some long termers taking profits if the sp does take off.
Lets see what they announce, things are hotting up and a rise out of this two year range could be close now.
Keep the faith a bit longer mate.
Your pair are the size of peanuts.....nothing has happened where the deal???? Red dot awaits
Happy now dill?2 red dots. You may be the man with a big pair, but I'm the man with an even bigger pair, who is prepared to wait until the time is right and be well into profit. That's the difference between us,try having a bit more faith in your investments.
So your happy with performance in here.... report all you like .... I'm a man with a big pair of balls that demands results..... they are getting well paid we need that deal not ifs And buts... because no deal we are looking at further dilution and rubbish excuses!!!! TIME TO DELIVER!!!!
I'm going no where until I see this deal over the line.... red dot awaits!!!!