They have stated several times they are looking for a joint-venture partner on the Montana acreage.
They have had offers on Mt. Emmons that they have turned down in hopes of finding a better deal after they file a plan of operations. You may consider Mt. Emmons to be worthless. But it would be a direliction of fiduciary responsibility not to try to maximize the value of a World Class asset.
<<They have stated several times they are looking for a joint-venture partner on the Montana acreage.>>
Looking for something is not a highly rewarding effort, unless it leads to finding something. They just did a big presentation in NYC at IPAA and I don't think they had anything fruit from that effort to share with us.
As for Mt. Emmons, there are a lot of medium term investments in energy and moning that have a long lead time and cost money to move forward. The question is whether USEG can afford to use all of the profits of the company to keep this one project moving forward. If it really is a bonanza with real potential for massive profits, why wouldn't someone else pony up the operating costs to the point of operations and then 75% of the capex through to production for 50% of the profits. More importantly, why would TC that had a better deal in place with lots of money already invested, just walk away from it. I expect that they walked away because they had other places to put their money with better return. And they had to chose among the options to invest their available resources.
So is Mt. Emmons the best place for all of USEG's money. What if they were another little oil and gas company trying to grow oil production - would you advise them to buy a non-operated mine years from production and put all their cash into trying make that happen. Maybe they should spin the moly mine off into a separate busienss and try to advance it on its own merit. If that is ridiculous on the face of it, then why would a small oil company make it their big project as an add on unrelated to their core business. Other than they used to be a mining comapny and are run by people with a lot of mining expebackground.