A new Blog has picked up on NES!
One of the most promising gold discoveries in Central America for sure. Not only the numerous outstanding drilling results (strong grades, long intercepts) matter, it’s far more.. in my eyes the quality of the discovery matters here. The most drilling results have a good allocation of mineralization, this increases the prospects of continuity – crucial for a world class mineral system imho. Newstrike discovered a very solid mineral system which has lots of privileges. The indentified mineralization is open in many directions. There’s also serious depth potential at Ana Paula. The overall depth of the identified mineral system offers an open pit operation with manageable prices regarding the well-established infrastructure, that’s very important.. we all know that nowadays CAPEX kills so many projects, margins and finally share holder value, especially in the long haul..
Today the most important requirement for world class gold deposits isn’t only the size potential for a multi million ounce discovery.. in view of exploding production costs worldwide the potential of a economical + robust, large scale operation is getting more and more crucial. There aren’t many gold deposits our there which offers such a possibility like Ana Paula imho (in view of the projected OPEX) for all the strucked major producers.
I also really like the strategy and the ambitious schedule of the management. “A 53-year-old investment banker Whittall said Newstrike has no interest in taking the project all the way to production. “My mandate from day one has been to define it, grow it, and partner or sell it,’’ he said.” In these difficult times the resposible of resource companies should be able to keep all the options open. So many companies with good projects try to move forward to production – at all costs – this often leads to huge dilution, lengthy dry spells and may destroy the majority of share holder value. So I prefer responsible with a clear goal in an adequate time frame.
Further a company needs the right people, in and especially behind the story to achieve great successes. Newstrike’s management has the essential skills for this challenge and also the important experience in the GBB. Newstrike has one of the most successful supporters in the mining sector: Project backed by the glory Lundin Clan – Lukas Lundin & family hold about 30-40+% of the outstanding shares.. that’s the financial and institutional support which word class projects always need! As well the influence and the large stake of Lundin in Newstrike is the best protection against a prematurely take over.
With these great fundamentals & prospects, the right people & location, drill rigs turning, so many untested high potential targets, 36+ million USD working capital, 0 warrants (that’s a giant privilege!), lots of dynamic catalysts (first RE, important studies, incl. project de-risking), continuous news flow etc. there’s a long way to go..