<<As per the news release why would the other partner thus being gme not participate in the purchase of the land that the down dip extension is suspected to be on?>>
I would suspect after talking to Richard McCloskey of GME that treasuries of both companies are pretty bare. The "answers" that I alluded to in my posting of the NR lastnight, given by the NR, had to do with the funding that EXL got for the land acquisition.
Strategically, for GME, if GME ends up the controlling entity and EXL has the adjacent land, they can force EXL to set up a separate mine to mine it by playing hardball just to get back at EXL. But that being said, If you review my comments over the past couple of months, you would see that my comments suspected that EXL was doing something "good"; because of the Tier1 brokage activity; suggesting insider (or in the loop) activity for which no PR was issued. Here it (what I think is material)was covered as an aside! Way to go EXL! Landowners.
WINZER's COMMENTS ON THE HIGHLIGHTS
"The loss incurred during the quarter was the result of the severe drop in the price of gold as well as lower than normal grade of ore milled during the quarter". (forgivable - US manipulation of the POG for elitists friends and families fully supported by the US government)
"Cost reductions and higher grade ore scheduled to be mined will result in improved earnings in the third quarter". (shortsighted and/or survival mode - management is running the operation into the ground chasing cost per ounce becuase of the manipulation).
"exceptional results achieved in the first six months diamond drilling program". (yes but can you mine stopes where the drilling gave the good results? Where are the stopes?)
"These results have supported the geologic model of the deposit and confirmed its down dip extension. The company geologists have
confidence that this will be a long life mining operation."(hope so)
"At this time, together with other cost cutting initiatives, Exall's exploration drilling program has been stopped. The drilling is expected to resume when gold prices improve." (survival mode?)
"On the legal front, there have been no new developments, however, both sides are continuing the dialogue in an effort to bring this matter to a resolution." (when was the last meeting? RM can't remember the last one).
"Exall also announces today that over the last 18 months the company has successfully negotiated a contiguous land package which may contain the down dip extension of the Glimmer Mine orebody. This ground is held 100 per cent by Exall and gives the company an unencumbered asset for future development. Prior to the negotiations with the land owners, Exall consulted with the other Glimmer Mine joint venture participant who chose not to participate with the land acquisition program." (would like to hear RM's version of this story)
CONCLUSION
So Brader, James and others and others, EXL maybe was forced to got it alone on the "down dip extension", and this is commendible in this low POG environment. To bad that this information was the source of profits for some people using Tier1 brokers. Maybe it was the landowners telling their buddies and not EXL insiders at all? In which case the poor EXL shareholder did not have the chance to excercise their "shareholder rights". Can't wait to see the market raction to this NR!
In any event it can only be interpreted as positive for GME, For a company like EXL to spend money that the don't have in this POOR POG environment on the down dip extension, should put a HUGE alarm bell off that the Glimmer property is one heck of an operation. I would say that in my 25 years of mining that this is a very good/strategic move for EXL.
Winzer |
