hey TSX,
this is from their press release:
"Casavant Mining Kimberlite International Announces Purchase of Drill Rigg, Accessories, Extra Equipment for Drilling
1/21/2004 8:02:00 AM
LAS VEGAS, Jan 21, 2004 /PRNewswire-FirstCall via COMTEX/ -- Casavant Mining Kimberlite International (Pink Sheets: CMKM) announced today that the company has purchased its own Drill Rigg and all equipment necessary to drill for diamonds. The company has also purchased secure warehouse facilities and living quarters for company drillers to work around the clock. In addition Security Fencing has been ordered for the protection of the facilities..."
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Also after thinking about it, with the # of acres of mineral rights that they do have and considering the # of drill sites that are possible in the long run I believe owning drills will be cheaper than leasing depending on what the average life is for a drill (am hoping that you can answer that for me )
The way I see it there is only two reasons for leasing any type of equipment (whether it be office,car,drilling etc).
(1) you cannot come up with the cash to buy the asset or
(2) it is an asset which will not be used extensively.
Since most machinery lasts somewhere in the range of 10-15 years (with good maintenance) and the fact that they have enough acreage to support drilling for at least that amount of time LOL is what leads me to believe that they are better off purchasing the equip.
I would like your point of view on the subject
thanks
dmd
AI
