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SolGold continues with a strategic review process as it looks to shave at least US$1 billion of the initial development cost of its Cascabel copper-gold project in Ecuador, chief executive Scott Caldwell told at the 2023 Gold Forum Americas in Colorado Springs, Colorado, while B2Gold is looking at a smaller development at Gramalote in Antioquia, Argentina, chief executive Clive Johnson told; Caldwell aims to announce the new vision for Cascabel and an updated resource estimate in the March quarter of 2024. The 2022 prefeasibility study outlined an average production of 132,000tpy of copper, 358,000ozpa of gold and 1Moz/y of silver.
"We would like to keep the initial capital cost well below $1.2-1.3 billion rather than the initial capital cost of $2.7 billion. It is lower throughput, mining higher grade material from the same resource."
"We have updated the resource with the drilling that has been done to date, the same flow sheet with little tweaks like probably not building a copper concentrate pipeline to the sea. We are excited about it as it also reduces the development schedule", said Caldwell.
B2Gold has just announced that it will buy out AngloGold Ashanti's stake in Gramalote after the partners failed to find a buyer for a bargain $20 million initial payment. The company believes that with just one company to satisfy, it can reduce the scale and scope of the project to something cheaper and more profitable.
It was never looked at as a smaller mine because two substantial producers needed probably 150,000ozpa minimum to each of our accounts, so the mine had to be 350,000-400,000ozpa. The push was always to see if we could exploit a 4Moz resource of low-grade material and make it work.
"If we don't need 400,000ozpa to satisfy two companies, what if it's 200,000ozpa for a single company? We believe that if we look at a smaller project, it can drop the capital dramatically with a smaller mill and lower our environmental footprint as well" said Johnson.
For SolGold, a lower initial capital may help it fund a buyer or development partner. To this end, in addition to meeting with copper and gold producers, Caldwell is also looking to repair relationships with two of the company's main shareholders: BHP and Newcrest Mining.
They were believed to be unhappy with how SolGold finally merged with Cornerstone Capital Resources to consolidate ownership of Cascabel in one company, which ultimately resulted in Caldwell leading the company. They both voted against me at the shareholder meeting last year, so we have been working hard to improve those relationships. I am meeting with Newmont here, and I hope they really look at the data before they decide what they want to do" said Caldwell.
Craig Jones know's a fair bit about Cascabel and I am certain he got Newmont very comfortable with this project whilst Newmont were doing DD on NCM...
Good to hear high level discussions are happening this week
Good grief! March 2024! It doesn't look as if Scott plans to sell this company any time soon. At this rate, we will still be here come 2026 arguing over whether co2 levels can be reduced by producing more fizzy drinks. Scott clearly has his nose in the trough and is not in any rush to move away from the trough.
I did like the last bit... reads a bit like... I need BHP's and Newmonts votes at the upcoming AGM or i'm toast so I'm getting cosy again with them to save my bacon. Problem is, they know I am buddies with bob and they are keen to stick his baseball bat some place where the sun doesn't shine.
If it's personal (and I think it is) there's no way BHP are going to vote for Scott unless of course he makes them a promise they can't refuse. Mmm.
I think, as usual, that on this BB we end up always adding too much interpretation to what we are told. Since the primary objective of the strategic review is to find a buyer or worst case a partner with deep pockets interested in a JV, naturally they will be engaging anyone who is happy to engage with us, and naturally they would not exclude the existing shareholders, who to date remain the most plausible partners. What is good is Scott sharing this detail, even (interpretation) one could maliciously think that he did it to stir interest with other parties, like the Chinese for example.
He should probably stop presenting at these conferences, last few presentations he made were followed in a 5% or so drop in the share price.....
Frankly Phil he has zero credibility...
We used to bemoan overpromising and underdelivering...now the only promise was a new website...months late and STILL out of date...
Theres an old adage...if you've got nothing to say, keep quiet...
We've had tumbleweed on here ever since Bob picked up the big bat and promised "fast and smart..."
Almost a year ago...
Please come back Nick and give this company a kick up the jaxy....
Don't forget Bob also promised to "embarrass" the big shareholders of Solg by doing a deal with someone else. Who is looking the embarrassment now?
Bob is now casually throwing into his statements that there is a possibility of losing all his money, big turnaround in confidence levels there! All talk and no action Bob and Scott are truly embarrassing!