I've done a little checking around, since War Eagle
is in my backyard. I became the moderator of this
board a couple of weeks ago because of chatter that
I was hearing in my mining circles. Prior to that, I
didn't know who DCUT was. The news release yesterday
confirmed what I was hearing.
It also explains the pick up in the share volume over
the last few weeks.
War Eagle is a mining property directly east of
two very successful open-pit mines owned by Kinross Gold
( KGC ). It's on the same fault line, and has already
produced a significant amount of gold.
A mineral royalty is the right to receive payments
from the mining operator of a certain percentage of
the ore produced. Generally, it is between 2 % and
8 %. Normally, it is a NSR ( Net Smelter Return ).
This means that the royalty holder receives a percentage
of whatever the smelter pays the operator, regardless of
the cost structure of the operator. It is based on the
ore shipped to the smelter, and the price the smelter
pays for the gold.
If they are buying the royalties of War Eagle, then
they have something big by the tail, according to my
friends.
I have had a call into the president of DiCut for a
couple of days now, but no return message. They seem to
be pretty tight-lipped about it. I will try to get as
much information as I can, when I can get it.
