Hi Dave:
Interestingly, I called the company on Sept 24th, just before the big move in pm's, and John Brock said that: "An improved gold price is needed to really proceed" <g>.
I had called because there was a volume of over 1 million shares in the one day. I was told it was an old institutional holder selling out, but apparently it was not difficult to find insiders at short notice to pick up the shares. I was also told that there was still potential for a merger and/or JV, or even to get financing for Guadalupe. The company was also due $800,000 in tax rebates from Mexico.
Since then, they came out with a PR last week (Oct 7th) stating that "the recent increase in the POG to $320 is enhancing opportunity for reactivation of the Guadalupe Gold-Silver project". The PR doesn't report any new figures -- just repeats the figures for the resources reported in 1998.
But it does say that "A work plan calling for a US$1.0 million drilling program to double the size of the drill-defined gold-silver mineralization at San Miguel and Guadalupe is therefore warranted".
My analysis? With the jump up in the POG, they are seriously working on a financing and laying the ground to re-start exploration at Guadalupe. Still very speculative, but at $0.07 (Can) per share, it could be worth a flyer! I may get a bit more, but I already loaded up at these prices earlier in the year and "averaged down" from over $1 a share. My average price is still about $0.25..... a long way to go to break even, but here's hoping. <vbg>
Best regards,
Howy |
