Here’s one to stick in your notebooks, kind reader of IKN. There’s a new fashion among one corner of the snake oil salespeople brigade, who are as usual trying hard to separate you from your currency bills and insert them into their own back pockets, which is using the phrase “One Of The Largest Undeveloped (insert metal of choice) In The World” when talking about their moose/chinchilla/llama pasture. Let us examine a few recent cases:
We start with Seabridge Gold (SEA.to) (SA), which here is framed by its CEO Rudi Fronk* as “…one of the world’s largest undeveloped gold project(s)“.
Here’s Chesapeake Gold (CGK.v) and its PDAC special zero content arm-waving NR out today which tells us of Metates and how it is “…one of the largest undeveloped gold, silver and zinc reserves in the world“.
Next Northern Dynasty (NDM.to) (NAK) which was pumped sans cesse to the idiot end of the world by the scumbags Katusa, Stansberry and Casey (among others) earlier this year and I lost count how many times I saw the phrase, but helpfully NDM used it in its recent (and weak) Kerrisdale rebuttal NR when stating that Pebble is “…(o)ne of the World’s Largest Undeveloped Copper and Gold Resources“.
And of course our old pals over at NadaGold (NG), perhaps the daddy gold scam of them all because they’ve actually convinced large money people to become tight hand holders. Again the phrase will get you hundreds of thousands of Google hits if you stick it in with the company name, but this one telling us that Donlin is “...one of the largest undeveloped gold deposits in the world“, is a good example.
All these and more. And the common thread between them is simple enough, they are all uneconomic, crazily expensive BS project that will never, ever, ever become mines. This humble corner of cyberspace could talk at length on the reasons behind that simple but true statement, all of these so-called assets (they’re not, they are in fact liabilities) have things in common such as low grades, high capex plans but they also have their own reasons for eventual failure locked into the specific projects. However, those of you just joining us should consider a wider truth, because it’s equally as valid:
THEY ARE UNDEVELOPED FOR A VERY GOOD REASON
These are projects that have been known about for many years, in some cases the discovery of the mineralization goes back decades and they’ve seen work on and off over the many years until today. Therefore they all beg the simple question; if these projects are so great, why have they stayed at project stage all this time and why hasn’t some deep-pocketed financier stumped up the billions of dollars (and it’s always Billions with a B) to develop them? And the answer is simple: They’re not worth developing. Way waaaay too risky to devote real money to them, they’ll remain as projects and dreams forever and ever. Talk is cheap.
Conclusion: With the phrase “One Of The Largest Undeveloped (insert metal of choice) In The World” we have a hack, a short-cut to know when a bunch of mining parasites are trying to rip us off. So if you see it in company literature, in a promo pump or perhaps quoted by a CEO in an interview, you now know what to do: