Hi Condor Eva, et al. RE: Goldrea
Just touched base with Larry Reaugh. Very pleased with his unadorned factual and sensible approach to Gor. Not much to report you wouldn't have already surmised.
- Plan is to get work started in 2 - 3 weeks, they want to identify mineralization that was outlined along strike by the mine operators through trenching, pitting and drill holes. This work, which is not compliant with Canadian regulations and can only be assessed by Goldrea drilling itself, indicated somewhere around 700,000 ozs.( I hardly think the Chinese mine operators to be fools so there has to be some validity to this number). We will drill with the goal of finding 500,000 to 1 mil ozs. at first and bring everything to 43-101 compliance. It is just possible that drills could be turning before Xmas. Currently awaiting final approval by TSX on the financing which should be imminent. There will be some work done on the other 11 leases but efforts will be concentrated on the area surrounding the mine.
-Once drilling has identified new resources an independent appraisal will be sought to negotiate a purchase price for the mine. The mill is apparently quite modern and they are running four flotation cells, recovery in the vicinity of 90% currently. Our efforts will be concentrated on exploration for now, mineralogy and recoveries etc. will be more closely examined in the process of purchasing the mine. It is clear that the long term goal is without a doubt to be in production. IMHO, Goldrea has an exceptionally favourable scenario for that !
Mr Reaugh is quite confident that the IR contract will get the message out. I left it at that. I think when things get moving so will the stock and I assume that I.R. is laying some groundwork there. Considering L.R.'s experience and success in this business it would be presumptive to assume I.R. is not doing its job just because the stock isn't jumping soon after the contract was awarded.
I forgot to get his take on the pit vs habitations but my feeling is that isn't a factor now and not likely to be in the future either. Next time, I'll remember.
Still think GOR represents very inexpensive ozs in the ground and incredible opportunity to become a producer. I will be long this stock for some time to come!!
Regards,
Ogi |
