CKG posts - PDAC
To: TheSlowLane who wrote (45251) 3/9/2006 10:58:03 AM
From: ogi Read Replies (2) of 45317
Spoke with Randy on Wednesday, missed the possible analyst.
What I did get from all this is he thinks they paid a small price for big upside. Further payments, ie rights don't come in to effect unless POG hits $850. Metates will surely provide a sufficient IRR at those prices, possibly in the low 600's.
There is a higher grade core 2-3 million ozs that would help, some 2-3 g/t. and lots of very lengthy intercepts. 200-300 metres of contiuos mineralization He also reiterated that he has come to a greater understanding of gold producers desires for really big projects. Metates could be 15-20 mil oz. It is still open at depth. There is much work to be done for CKG on Metates.
Meanwhile they want to ramp up the work at La Gitana, get some JV's underway and most especially prove they have a DISTRICT not just a deposit.
You are right the magnitude of this deal will bring attention to CKG.
One of many enjoyable PDAC meetings.
Cheers,
Ogi
To: Zincman who wrote (45272) 3/9/2006 1:34:46 PM
From: ogi Respond to of 45317
I would not dare deviate from the standard CKG answer. 2 weeks?
I did not ask a specific time but I believe we will see more news going forward and shortly. New prospects identified, new drill results, jv's.
I believe they are looking to JV both Cucaracha and La Calavera.
Cheers,
Ogi
To: Zincman who wrote (45272) 3/9/2006 1:47:43 PM
From: ogi Respond to of 45317
P.S.
I am only surmising but CKG has done a lot of regional reconnaissance work and identified numerous different showings.
AU/AG Eithermal targets, skarn targets etc. These must be followed up with trenching and more sampling and then drilling. They are almost all in areas with no roads, making progress difficult and slow. Alberto( who identified Marlin for CKG) said it was hard to get geos to got out in the bush and do this work. The average guy would rather work on easier stuff. Anyway, it seemed there was clearly a determination to increase the work and add drills as soon as can be done.
The main thrust behind proving a district is the big boys want 4 mil ozs or more, the intermediates maybe less but they both want to buy a deposit with remaining upside exploration.
Cheers,
Ogi
I got a better appreciation for the deal when Randy pointed out that the leverage came without much cost. Cheap ozs. An awful lot of them.
Of course it was in front of me but I needed it emphasized. Doh.
I still dislike things with marginal economics and I was not thrilled by the deal but I suspect Randy knows it can be sold in the right market and meanwhile it does not cost that much for the exposure. I am still on board.
We have waited over 20 years for a bull run in gold. God knowws where infowave is in 20 years? At least we knew gold would still exist!! ggg
Cheers,
Ogi
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