Dear Russ et al.
I had hoped to provide a good report from PDAC this year but I accepted an invitation to see friends in the U.S. that week and spent very few hours at the convention Sun and Monday. That meant I was unable to see some of the people I had hoped to and there was very little time with those I did see. Please accept my apologies for the scanty remarks.
First, I met with Jim Steel of Mining Insights, as a subscriber ( a very worthwhile subscription) it was a great pleasure to meet him in person.
Jim is a very quick study and knows an enormous number of people in the industry, which was amply demonstrated as we walked the show floor and Jim introduced me to quite a few players along the way. I led him over to Anatolia ( I own shares) I had spoken with Richard Moores on the phone and earlier that day spoke with an independent geologist who had worked on Anatolia's properties. I was coming to understand the enormity of the signature on the Cukurdere
property, the copper gold central area first drilled, all the way out to a Manganese mine well beyond the marble zone approximately a mile to the east. I am more convinced than ever of the prospects here, without considering their many other elephant targets in the portfolio. I did not add to my position as the next 20 holes, eagerly awaited, will make that decision for me and still provide profit opportunity I believe. My only caveat is a poor understanding of Turkey in the market, particularly if the U.S. invades Iraq.
Hasn't hurt Eldorado lately though, has it?
I was cautioned by a very knowledgeable source to be wary of GNG's results as they had so much difficulty producing drill holes since starting the program. Too late for this post! However, the same source did say that the property does have good potential. I will wait for another round of holes.
Met with Ron Thiesson of Hunter Dickenson. Elizabeth, I believe you were curious about Farallon and the lawsuit saga in Mexico. Farallon has won every case decidedly, including Mexico where the plaintiff entered NO EVIDENCE in the trial and lost,Fan is being awarded costs. They did file an appeal but since no evidence was entered in the original trial, there are no grounds for an appeal which is supposedly a photocopy of the original complaint.The legal hassles for Fan are part of a stock scam, which becomes very clear if you investigate the Stockhouse thread, supporters of David Hermiston and the companies he is raising funds for on the backs of these lawsuits are too bizarre to believe. There is a sucker born every minute!! Farallon expects a dismissal of the appeal in 4 to 12 weeks(?), I hate trying to time a Mexican legal ruling. Meanwhile, expect a significant financing soon, all monies raised will go toward the property, Fan's debt is held by parent HD who will not be seeking reimbursement at this time. Penoles continues to pay close attention but like many majors they are cutting back when they could be snapping up bargains. They are still the lead candidate for a deal on Fan which may yet happen. I own Fan.
The story on Northern Dynasty in Alaska is simple, they have to find other deposits with high grade core. The property is massive and what is there could be made economic IF more high grade is found. Good luck to NDM shareholders.
GBG awaits the right deal I think HD are being very careful to find one and with their track record I think it is only a matter of time.
I spent a bit of time with IMA (IMR-CDNX) and what the geology might mean at their Rio Tabaconas project in Peru. This is a complex multi faceted target. Early drill results are encouraging, there has been substantial artisanal mining throughout the property and there are gold showings right on the very top of both ,Cerro Tablon and Cerro Las Minas, which have not been glaciated so the gold belongs there. The information in the public domain is far better than what I could communicate, get a package from them. Is there a copper gold porphyry in between the two mountains?? I have been following IMR over the last 2 years, don't own it yet, I know many here do, I think this is the next best drill hole speculation after Anatolia and am looking for a way to take a position. A well run company, worth all your Due Diligence.
Again I apologize for tardiness and light content. The overall mood at PDAC was far livelier than my last visit in 2000. What is clear is that money is being made available to the sector that has been unavailable for years, this does not look like so many false starts!
Regards
Ogi |
