Okay, I am noodling this one through my head...
First, for all intents and purposes, McCluskey has been running this company for the past 6+ months and not Millar. But Millar has been key as a figurehead and very helpful in raising cash and giving great exposure/legitimacy to AGI.
Disagree entirely with "lots of unanswered questions", AGI has proven and measured reserves of over 2M ounces, not many unanswered questions there...
This is the key quote: "The resignation of Chester Millar arose out a difference with the Board with respect to the future plans for development and further exploration of the Mulatos Deposit on the Company's 16,000 hectare Salamandra Property."
However, the next part seems to contratict the above quote, i.e. AGI still planning to build a mine producing 100,000+ ounces per year: "The purpose of the feasibility study is to determine the feasibility of developing a mine capable of sustaining a rate of production of at least 100,000 ounces of gold per year which is consistent with the business plan that was approved by the Board of Directors since the formation of the Alamos Gold Inc. in March, 2003."
My guess is the current drill program which has apparently identified higher grade, lower sulphide reserves has impacted the Salamandra mine plan and future exploration. Apparently to such a degree that there was a 3:2 split on the board, with Millar and Stine voting against and McCluskey, McDonald and Hughes voting for..., this resulted in Millar and Stine tendering their resignations...
We will know substantially more if and when AGI announces results of its recent drill program and if and when AGI reaffirms that it will be in production by first half of 2005.
The Millar resignation in no way can be viewed as positive, however. Nonetheless, that 2M ounce reserve (with great IRR at $350 POG) is not going to disappear just because Chester is gone either. Yet, Millar's knowledge of heap leach mining and ability to review a mine plan to ensure it is "failure proof" will be lost to AGI as well as his figurehead status that would ensure a successful next round financing...
Will be interesting to see how this plays out... If AGI gets whacked substantially tomorrow and next week, I will be a buyer... Could this simply be a power play with McCluskey, McDonald and Hughes the winners and Millar and Stines the losers...? But why and how come?, and are the new institutional players/shareholders behind this apparent coup...?
Lots of unanswered questions and the new management team/directors need to issue another press release ASAP, because Chester Millar's resignation is certainly not good news...
