Believe you mean August 2006 rather than Aug 2005. That is the firm/drop-dead date in the contract. The estimated 12 months deadline from BLM permit is more nebulous. HL may well be able to argue that 1) this was an estimate and unforeseen problems arose and 2) initial access to property because of NEM reclamation prevented them from starting until late Sept. This is malarky, but something HL can argue in court and should be successful for at least a few months added time.
"By current contract they are obligated to complete the decline by the end of August or lose all of their interest in the project."
Listen to Thiessen comments at BMO conference. My impression is GBN will not be kicking HL off the property until at least Dec 2005 if HL has not finished Stage 1 by then. Then there would be legal fees to get this done.
In any event, Aug 2006 is the firm drop-dead date. HL must be finished by then AND have fully funded the entire capex of the project.
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