The doubling of the stock out came from the deal they made with the shareholders which called for 14 million shares for their property groups, a copper IOCG property, and a "few others".
They have decided to drop the Kirkland Lake and Red Lake properties, both of which I worked on. There was an eff-up in Kirkland where a good drill hole on a new structure was on a property that somehow lapsed and fell to a third party. (The Ontario government no longer has relief from forfeiture, and I don't know how legal that is, but they want to "streamline" things.. i.e. screw the landholder where they can. They (gov.on.ca) also have a "declaration of fairness" in staking (i.e. the ground cannot be disputed after a certain period of time that it has been staked...) which is not a good principle in law, as it limits rights of suit and would allow non-compliance and fraud to be protected, so I think much of the new mining act could be challenged in court.)
I don't hold out much hope for that (KL) one anymore. Unless they wanted to get into another property acquisition. It does not appear that Terex thinks gold or old mining camps with gold are a necessary flavouring agent in their layer cake. I wonder -- would they accept a Hemlo or Goldcorp icing?
The Red Lake property is narrow vein, and the historical work there revealed a structure, (mined in the 1980's) that was high grade, but discontinuous. Terex are not real mining people, and anyway that particular property is difficult to assess. I looked at the ore dump from the last mined stope and could not come to a conclusion on it. It either runs .13 OPT or maybe 0.20 OPT but it would not run on assays at any rate. I did all kinds of assays but the grade was not establishable in my opinion. Too nuggety.
They advertised that they had a management group that could promote and raise money. This remains to be seen with the moves they have made so far. In fact the market is not chasing much of the usual manoeuvers of the many who flock to the new Baskin and Robbins picks. Moly is a great price, but Moly is just barely supporting some stocks with no "runaway busses", so to speak. Uranium stocks with good ground and even creditable resources seem to be getting ignored. (JNR Res, v.jnn.) It is a funny market.
The tree needs some vigorous shaking.
EC<:-} |
