WARNING TO POTENTIAL INVESTORS!!!
I was the CEO of a small gold company and we spent three years trying to find a profitable gold mine in the North Yungas area of Bolivia.
A good place to start for GE newbies, see:
ragingbull.com
This gives a summary of the positions of some of the players and the ongoing soap opera!
Another interesting one!
ragingbull.altavista.com
Some Facts about Golden Eagle International:
- over 165 million shares out.
- over 13 million dollars in accumulated deficit.
- A recent 10 k: General and administrative $1,195,645, Exploration $174,608,
- Over 5 MILLION dollars of debt
- About one million dollars out in convertible debentures that at this point, according to an 8k, are floorless in the conversion price.
- Some old equipment is virtually the only assets.
- GE has the rights to a placer gold concession in Bolivia, called Cangalli, at an 18% royalty rate, which is considered high in mining circles.
- GE also has the rights to another concession, royalty free however no testing has been announced on this property.
- GE issued a news release in 1998 claiming a very large gold resource.
- The SEC filed a complaint of securities fraud against GE and some officers.
- GE then filed an 8k clearly stating that there are no documented gold reserves at Cangalli.
- GE and the former officers settled the complaint.
- Terry Turner, the current president, was absolved because he was “reasonable” in trusting a geologist’s report.
- GE has made various attempts to extract gold and has failed to get any profitable production.
- There has been much discussion about bulk sampling but they have consistently failed to perform controlled bulk samples to prove up economical gold.
- Posters have been claiming that GE will bulk sample for the past three years but there has been no news to the public.
Recent Developments:
A couple of years ago this stock was around thirty cents and a then went down to three cents. The Court in Denver issued a ruling in Feb 2000, in a “close case”, that the SEC failed to prove that Terry Turner committed securities fraud, in May of 1998, by issuing a news release claiming huge gold reserves. After the ruling the touts flooded the internet with speculation and hype so the stock shot up about 500% in the ensuing hysteria!! Turner et al subsequently conducted meetings in the Eastern US, from my understanding, to raise more money. Some people bought stock at over 20 cents and the stock then went back down to the current level of under 5 cents.
GE recently claimed the mining rights to more property around the Cangalli Concession. This is less than it appears as anybody can probably do this, with some money and a fax machine, from their home.
Past performance
GE involvement in Bolivia started, in 1995, during the time when Bre-X was flying and IMO they intended to ride on the coat tails. They found an obscure concession at the end of the ”most dangerous road in the world” (Lonely Planet Survival Guide). A Bolivian geologist (Guido Paravicini) was hired, and after a very low 108 samples, he declared Indicated Resources of 60,771,704 troy ounces. I believe, on professional advice, that Guido’s Reserve/Resource conclusions are bogus. GE later filed an 8k (Report), with the SEC, taking the same position:
sec.gov
“As a result of subsequent internal review of the Paravicini report, management of Golden Eagle has concluded that the techniques used by Mr. Paravicini were insufficient to justify the calculations made, and the term "reserves" may be an inaccurate characterization of the mineralization found on the Golden Eagle properties in the Cangalli district.”
GE has made various attempts to extract gold and has failed to get any profitable production. There has been much discussion about bulk sampling but they have consistently refused to perform controlled bulk samples to prove up some economical gold. The Minions have provided excuses about “micro-fine gold”, gold encased in wood, gold in the underlying bedrock, troubles with the co-op etc. All, IMO, bogus!
Our company spent almost three years in the same area trying to make a profit mining gold. It is my belief that there are thin, rich, seams on the property that are good for hand miners. IMO there is no significant area on the property where a company can build a large profitable open pit gold mine.
Ongoing
There has been a steady succession of people posting continuously on Raging Bull to try to stifle any dissenting opinions and they resort to many underhanded tactics. Almost from the time I first posted on RB, in Aug. 98, the goons declared war with me. If this company was not a scam, why would they bother? Now the president of the company, Terry Turner, is suing me.
My position regarding Turner and the SEC complaint is clear. I believe he acted in good faith in releasing the Guido report and that judge was correct in her decision. I believe that Turner, like everybody else, does not know if there is economical gold there, or not.
Dr. Donald Hausen wrote in the Journal of mining.
“The variable distribution of coarse gold throughout the deposit requires large Bulk sampling. Sluice processing of samples from a number of small open pits could provide recoverable gold grades and would evaluate grade continuity to justify the development of a large open pit for production.”
I have advocated this course of action almost since I first posted and was met with flames. Why they do not do this is beyond my comprehension. There was a lot of equipment available in the area to perform this task. They have spent considerable sums on G&A expenses that I believe should partly have gone to bulk sampling.
Most of the major mining companies will have nothing to do with alluvial (placer) mines. It is frustrating but true. At this time, it is difficult to raise money for any mining project and many of the majors are closing offices and marginal mines. They are hardly in the spirit to open an alluvial mine
All just my opinions of course. Do your own DD. |
