drowsy syrups of the world

Ari Sussman and Vic Wall playing it fast and loose again

So I was flicking through the recent Continental Gold (CNL.to) literature and the plans for the Buritica mine when the following caveat on its plans found here caught my beady little eye:

* Proposed mine plan is dependent on, among other things, continued exploration success, environmental and board approvals, completing positive economic studies and the determination that the deposit is economically viable. 

Got that? It says that its plans are dependent on “completing positive economic studies” and of course determine “that the deposit is economically viable” before doing anything expensive and that’s fair enough, right? Which brings thy humbleth scribeth to the following, Exhibit B if you like, the development timeline plan from the company’s latest corporate presentation (slide 33, to be exact):

It looks for all the world as if CNL.to is going to forget about the fripperies of a Pre-Feas Study (PFS), worry not over the trifles and details of a Feasibility Study (FS) and jump straight from the earliest stage of economic study (PEA/Scoping Study) to a construction decision and then raise its capital and build its mine.
What. Could. Possibly. Go. Wrong?
Just out of interest, the last time Ari Sussman and Vic Wall got together to play at mining, they picked the following as their promo vehicle:
  • A high grade gold deposit
  • In South America
  • Highly promoted to retail with brokerage coverage all around
  • Scant mention of the poor community relations through the development and exploration phase
  • Construction decision made without producing a PFS or an FS

The name of that company was Colossus Minerals. Ring any bells? Remember how that one turned out? Some remarkable coincidences developing to connect the two companies, are there not?
Bottom Line: Avoid CNL.to like the veritable plague.

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