Thanks for the info on ADA, ogi, and pointing out some reasons why ADA is trading so cheaply.
I didn't realize there was any Bre-x connection. Apparently, they have 5 directors, not 2, but 2 of the 5, including the CEO, are named Felderhof and working actively in Nova Scotia: acadiangold.ca . Assuming they are related, I can't condemn them for being related to a criminal -- I'd hate to be judged by my brother's or uncle's previous actions. This blog (http://www.thesimpleinvestor.ca/stocks-covered/acadian-gold-ada ) says the management is "Very experienced, patient and well connected."
Their gold resources, while they may have started from 70's drilling (during the last gold bull market), are now NI 43-101 compliant: acadiangold.ca
Apparently, permitting for their zinc mine is already in place: Message 23010379
As for the stupid government roadblocks, this exchange the CEO had with a Mr. Hines of the Nova Scotia House of Assembly Resources committee in February (http://www.gov.ns.ca/legislature/hansard/comm/r/re_2006feb21.htm) makes it seem like they have some government support:
MR. HINES: Further to that, the Gays River site, yes, the residents of Gays River who have been there for centuries probably have no problem with what you're doing. Traditionally what happens is you get access to the rural areas and you get new people coming in who start to make the noise and sound the noise. I would suggest that in your feasibility study that part of it will definitely be the environmental thing, but I would suggest that at every opportunity you bring it to the attention of the ministers involved and the government of the day, whoever it might be - hopefully it's still us - to make them aware of the economic potential that you have in gold in this province, because sometimes you get to a balance of what's right environmentally and try to do that balance. Presently the Ecology Action Centre has been good with the forest industry, in recognizing that there's economic impact as well as to just cart blanche cutting a project. So make sure you get your dialogue going with the province.
MR. FELDERHOF: I appreciate that.
MR. HINES: I certainly will be a supporter of development that brings prosperity to the province, but I still have to be conscious of the environment.
MR. FELDERHOF: Of course. It's our goal, obviously, to be good corporate citizens, as well. There's no question. We have been talking to the respective communities already. I've made a presentation to the Municipality of Guysborough regarding Forest Hill, about a year and a half, two years ago. I'm due to go in again and give them an update. We've recently contacted the Chamber of Commerce in East Hants, and we're going to be going in and seeing them, giving them a presentation shortly. I've had correspondence from rural citizens in the Musquodoboit Harbour area, asking about when we're opening these operations. They're concerned about their schools closing, and they wanted a letter from me for support, indicating that these operations were planned for the future in the hopes that they could make a case to keep their schools open, which I did.
We are very cognizant of that. We're going to make sure that we go to the communities that are involved in these different projects that we do, we do see them early on and be very proactive. I also want to add that I think it was two weeks ago I had lunch with the Deputy Minister of Natural Resources, along with the executive director. Basically, it's interesting you brought this up, because they said the same things to me, that we'd be well advised to see everybody very early on to keep them apprised of what your plans are, so they know right from day one where you're going and what the benefits are to the community.
MR. HINES: I think that all three of the caucuses would be receptive to caucus presentations, as well as have new enlightening facts come on board and so on, so that the caucuses are up to scratch on what you're doing. I think awareness right now is the big saviour to trying to bring a project into this place, that everybody is aware and all the participants are aware, and developing an environmental strategy and so on. I know from experience in the Waverley area, having Dexter Construction there, that anytime you approve a permit to a mine or a quarry or any of those things that remediation becomes a big issue.
In that discussion on the expansion of the quarry operations in Waverley, that was one of the issues that we made sure we dealt with, the remediation aspect of the contractual agreement. It does more than just put rock and so on back in place, it does plant berms and it does provide topsoil, and also provides a schedule for remediation. You suggested that perhaps your remediation would follow your project. They have done that out there. And although you still have people in the community not happy with it, they're happy that was recognized in the request to develop. I think you have to be really on top of those things in this day and age, which I'm sure you're aware of.
MR. FELDERHOF: Very much so.
Roulston does really like them, as do McCoach (http://www.siliconinvestor.com/readmsg.aspx?msgid=23010379 ) and Cannaccord (http://www.siliconinvestor.com/readmsg.aspx?msgid=22951079 ). 105 mil. shares outstanding doesn't seem very uncommon in mining, particularly considering all the acquisitions ADA has made recently. At .68, that's still a tiny market cap for the cash flow they'll be getting from the zinc mine alone, especially if zinc moves even higher in the next 6 months as the LME inventories get depleted.
I've done my DD and chose to invest in some ADA. That doesn't mean I think it's superior to my other holdings, as it's one of my smallest holdings. As I said, I hold much, much more MMG which I think has much more upside over the long term. I also hold much more Roxmark, which has a similar business plan of using base metals revenue to reopen their gold mines. I like Roxmark's gold potential more because they have the infrastructure and previous production and are in Ontario. I just was looking for a near-term zinc producer to round out the portfolio and found ADA to fit that bill better than the other possibilities. There aren't many near-term zinc producers.
Aloha |
