Claude and all,
I had a brief conversation with Bruce McLeod on Friday regarding NDT Ventures. Bruce is a director at NDT and a brother to Catherine McLeod-Seltzer, president of PFG and ex-president of Arequipa, which was taken over by Barrick in 1996 for $1.1 billion.
I wanted to get a feel for the company, its philosophy and an update on existing properties and any future property acquisitions/ joint ventures in South America. I found Bruce to be very easy to talk to as he relayed the companies current activities and strategy.
Bruce explained how in light of the poor market in the Voisey Bay region, which has been in a down trend over the last few years, the Company recognized a need to change its strategy.
Their first move in this direction happened in April 1999. Thomas Burkhart was appointed as vice president of exploration. Burkhart had previously held senior positions at Pegasus Gold and came highly recommended by Tom Shrake of PFG. northair.com
Since that appointment, NDT has been aggressively making inroads into Argentina and Peru by adding to their inventory of properties. By using an extensive network of prospectors and/or expatriate geologists they have initiated what appears to be an aggressive attempt to find that "homerun" property. Properties brought to the company's attention are evaluated by Burkhart, who Bruce informs me has "a great nose for rocks and economics and an excellent track record". It is my understanding there are a « dozen prospective properties currently being followed-up.
From the latest quarterly statement, I note the following: The Company's expanding network in Peru is effectively identifying opportunities that meet its high quality control standards and there are a number of property reviews in progress. This includes one gold property, where joint venture discussions are in progress with a Lima based Peruvian entity. sedar.com
Although Bruce could provide little information on this property, it is my understanding they have been negotiating for some time. I have seen with PFGs Luicho property acquisition, that these types of negotiations can take anywhere from 6-12 months. Should this one come to fruition, in my opinion this one should move to a higher level.
If not, the company appears to have chosen the strategy that should eventually allow it to find that "homerun" property. The market appears to have recognized the potential here, as can be seen by the attached graph.
stockmaster.com
The current share price in my mind is very attractive, cash equates to 18 cents a share, the rest is speculation. I've taken my initial position and may add to it as events unfold.
Good investing,
Qd |
