Ontex Resources (ONT Alberta) Message Board

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Gold/Mining/Energy : Ontex Resources (ONT Alberta)

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To: wharryr who wrote (358)	7/31/1999 6:56:00 PM
From: mark warburton	Read Replies (2) of 519

Dr. Myke is right in pointing out what has already passed. He points out also that the vlaue of Ontex is back where it was before the settlement. Back then a bidding process had taken place between a number of large firms. In each instance the bids were roughly 7.5 million for 55% control of Brookbank and Cherbourg only. At the time you had 15 or 16 million shares outstanding. So the majors were offering 7.5 million for 17 million Ontex shares or 44 cents per share. Now that included the 2 claim areas. The current seting is the entire property with additional drill results in outling a further 1500 foot extension on Brookbank and deeper testing if Cherbourg at very positive values. In addition up to a 70 percent stake in the balance of the claims and Fox Ear as a kicker. I think with the current stock price the market price of Ontex reflects the bare minimum a major would be prepared to pay. They were offerong 44 you have additonal claims, more positive drill results and likely a very good chance of continuing to expand the Cherbourg zone. Downside from here is minimal on fundamentals, but markets are not always efficient and are prone to over reaction over correcting and price manipulation. If you stand back and look at the property for its merits only you have a very good prospect for multimillion ounce deposits. Geraldton Beardmore is one of the top 5 producing gold camps in Canada. Geologists comments on the area are that grades stay fairly consistent and are reasonbly easy to find in slanting veins. This has proven so with past and current drilling of the properties we have. Seems like you can go up and down the fault and target the 1000 to 1500 foot range and continuosly pull in good grade. Thickness varies but grade is consistently high. The numbers they are reporting on these holes are good. Not great but good and consistent. Hemlo is a .30 deposit. Considered world class by anyones standards and yet .40 with Ontex gets a ho hum. Only cause we expect that as a minimum. Dr. You pointed out in a previous post this property will take years to define properly and you are right in that observation. As you are well aware though the tide can change in a hurry and pessimism can turn to optimism at the drop of a hat. In all my conversations with any of management they are all extremely cool about the situation. That bothers me!! When something gets out of control at my workplace hey we correct it or find out whats wrong whats up and react. We don't say oh well the markets soft or a price of some commodity is off. Real sorry but when the best guesstimate to produce the gold up there is running around 220 canadian and the price of gold sits around 375 canadian there is still lots of profit in the resource. Just the inferred resource on Brookbank is well in excess of the current market cap. If more then one major was offering around 44 cents a share for part of the property they must have assumed they would get their money back probably minimum ten times over. The stock will pan out just got to be patient. To quote you once again Accumulate on weakness when nobody is interested. Beggining to think your a contrary indicator. when you say buy we should sell when you say leave it I would imagine your just about on the bid. Myke whats up? Mark

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