In the case of someone like Randy with CKG it is easier to determine their track record because it is one of unqualified success. Just go back to Francisco Gold, see two deposits delineated while cash raised as non dilutive as possible. Then a fair sale to Glamis followed by a subsidiary created with a huge treasury as a dividend to Francisco holders on top of the Glamis buyout. Same all over with Ckg, non dilutive all business, no hype just diligent work. I have not met Randy but did spend time with his geo, Alain Charest at last year's PDAC, time well spent.
Just this evening I got an email from Midas de Metropole touting some article from Ken Reser. Bill Murphy talks glowingly about Ken( an IR guy) and his boss Larry Reaugh of Goldrea and Adanac Moly Fame. Illustrative of why I stopped supporting Gata.
These guys are an example of who I don't want as management. Upwards of 3 IR contracts at one time?? Come On. IR posting their little hearts out at Stockhouse? That approach alone should tell what the reality is. Check the very best most successful management you can think of and see if they waste their time posting hyperbole to a bunch of positive/negative flamethrowers on Stockhouse.What could that tactic have to do with executing a business plan for exploration success? An insult to the treasury to be sure. Next check the filings for insider trading.Pages of transactions are in my opinion not what is desired.Check all financial filings for a look at how money is spent, ie advertising, drilling, management fees, etc.the terms and participants in financings are also interesting. Then see if management does what it says in its intended business plan.
Well with Gor the Stockhouse Ir posts kept talking on and on about huge potential in Elephant country around the Chinese mine they had an option to buy. Results? Not many, and not much gold. But today they announce the purchase of the mine which is mining a reserve that is not being replaced and after a year of drilling they only have a few marginal intercepts, 5m at 4.09 g/t :http://www.stockwatch.com/swnet/oldsite/oldsite_bull.aspx?region=C&symbol=GOR&bid=B-488490-C:GOR&head=Y
or previously the first drill program which took 6 mos to produce results came up with 4 m of 8.26 g/t at a depth of 296 metres:http://www.stockwatch.com/swnet/oldsite/oldsite_bull.aspx?region=C&symbol=GOR&bid=B-464369-C:GOR&head=Y
No elephants in sight but the stock goes zooming up. Why? Because they own a mine that is running out of material, still going mind you but where is the upside with these exploration results. Well the talk on the "boards" has turned to the wealth of Sericite?contained in the mine. Sericite, I guess.Maybe they just missed the gold but here is the catch, there has been purportedly lots of drill holes by the Chinese all around the mine that produced an inferred resource of 700, 000 ozs of gold!! Goldrea quite correctly explains this is not a resource that can be relied on under Canadian laws. However, my experience is that the company certainly wants you to believe that potential. So, after reviewing the Chinese drilling they drill themselves and the results are the meagre intercepts I have referenced here. Goldrea's website: The Story of the 700,000 ozs.
goldrea.com
None of my doubts regarding how Goldrea conducts itself and what it has not achieved through drilling preclude ultimate success for Goldrea and its shareholders. Rather, it is just representative of a style I choose not to partner with. I did own it at one time on the hopes the promotional efforts would bring a quick win but the drill results took me out completely.
I have not looked at recent insider reports.
What I will say is that you should attend conferences if you want to make money in exploration. There is much to learn, always and what you learn will pay for the trip over and over again. You might also learn that some mines have more than one person that found it? Yes, it is true there are properties that had so many hands on them at different times that many can claim to have "found" the mine. Most importantly just get to see people in person and get a feel for them face to face. Make friends too, always worthwhile.
Cheers,
Ogi |
