I've seen the highlights to drill results, and I've looked further at the full results. You expect us to believe movers representing highly reputable companies make their decisions without looking at the full data? I don't think so.
The second SRK report based on production, as you say, did not access the ore at drill results from depths where the high grade was. For whatever reason RBY didn't use the "deep" ore for its throughput to pour its first bar. The majors in the area know how to go deep and and run profitable operations in the Red Lake area. There is no reason to believe the deposits on RBY's land are geologically any different then the majors that produce large volumes of gold ounces at Red Lake.
Who knows how serious the mistakes RBY made are? I think many have lost sight of the value that is there. Problem is, RBY has financial obligations that are forcing, to who knows what extent, their backs against the wall. If that don't have willing financiers in the wings then the investment is distressed and will have to be sold cheap. If they have some financial support/resources lined up then they can hold value, maybe even quasi-auction. Bottom line is they made an effort to produce the gold they determined was there by drilling, and didn't/couldn't get to it. Didn't/couldn't get it to the mill... That is probably the reason the CEO over the project's development exited...
Running high grade through the mill does amazing things to the cost of production, and bringing only low grade to the mill is probably the main reason for RBY's failed first effort at production: costs were way too high because they didn't bring good grade to the mill. One disgruntled investor commented to me,"... they don't know how to get it out of the ground." Probably true, but I think the majors in the area do, so I think the project might surprise some as to its worth if it changes hands. Certainly a gamble to invest in it at this point. Highly risky!
Seems like drill results are what investors base their decision to invest or not to invest in a project. Are you saying the major financiers of the Phoenix project, RGLD, AEM, and the like didn't interpret the drill results right?
Seems we won't know where this goes until there's news. It may be RBY took it as far as they can. They have said further definition of the resource is required before production can resume. I don't think they want to pursue it. I think they may want to find a major to buy them out. I think there is a reasonable amount of the potential still there that got everyone so excited about the project in the first place. The price of gold is looking more favorable going forward, so there may be a buyer for the operation. Cost is one of the factors that influenced RBY's management to shut down. Who knows what a major can bring to the project to turn it around? It may be a profitable operation can be salvaged from RBY's accomplishment given a certain price of gold. It is what it is... Maybe not as worthless as some suggest.
I read somewhere that the second SRK report that reduced the resource was based on drill results that had a depth limit, and that was the reason why the resource declined so dramatically. isn't it true that in general the richest Red Lake deposits are very deep?
Here's a wild idea, and I'm not trying to pump, but I think this is worth throwing out there since no one can really explain what is going on. Some will say it's just one huge mistake. Maybe...?
However, perhaps Ruby shut down because, as they said, the resource is more complex than they anticipated. They ordered the second SKR report to prove the resource is deep - deeper than they thought, and so they want out. Perhaps they are just looking to sell, some loss of value and some discount to the buyer for taking over an operation that will require significant further investment. Maybe it's not that it is so valueless, as the market is indicating. Maybe the outcome of the end of June meeting is that a new owner of Ruby is announced and that it is sold for a respectable sum, worth it to a major that can handle the investment of further development.