As with McWaters we see another nice little deposit with good grades. I do see an issue of only earning $2.9M cash flow over a 26 LOM months. Thats a lot of time and expenditure to earn so little. Especially when the Chinese obligations are due in 16 months (May 2011). I really don't see how both McWaters and Redstone will make so much net profit while meeting those expenditures and capital commitments and then developing Hart. And thats based on the SRK data and assuming all their assumptions turn out correct.
Also in today's nr I find it interesting that all three deposits of Hart, McWaters and Redstone combined have about the same amount of pounds of nickel as the Langmuir North Zone alone, but without the need of going under ground.
This probably has something to do this the weak price of late.
IMO, its time these two companies stop wasting so much capital and improve the efficiency of the area. Otherwise it will be a no-win situation in the end.
