CanAlaska - Down But Far From Out
So, despite the major $$$ going into the ground, despite a first-rate technical team advising on the project, VBE-1 has not produced any noteworthy results to date. Naturally, ICA's price has drooped.
An important note here -- the shareholders have consistently received from us the most complete information we could provide, and no one has attempted to erect a smoke screen around this program. More than likely, our forthrightness has contributed to the price decline, but I uphold honesty and transparency as paramount virtues, often sadly lacking in my business.
VBE-1 is not finished yet. Hole #7 is ongoing, and is collared on the best target we have generated this year. It's too soon to count it out, but I'm going to anyway, to make my points.
When all the bills are paid for Labrador exploration, CanAlaska will have about $2.2 million in the bank, and a large portfolio of securities worth, in the current market, about $1.5 million. The cash break-up value of an ICA share is about $0.225; if one includes the equities, an ICA share is worth at least $0.40, giving no value whatsoever to the mineral properties.
Which brings me to another matter, the fact that CanAlaska controls many different projects around the world, not just VBE-1 and VBE-2. While most of the company's investors are in because of Labrador's potential, they also stand to benefit from other activities. For instance, US$1 million has been spent on the Ipeti Concession in Panama this year, not one cent of which came from ICA.
CanAlaska's El Pauji Concession in Venezula's Kilometre 88 District is the next project to see development; we are currently in negotiations regarding joint venture, and given El Pauji's position next to two major gold deposits, I have little doubt that one of the several interested parties, (both major and junior mining companies), will be willing to fund exploration.
CanAlaska has nearly concluded another deal, one which will give us exposure to a new region. Until the deal's done, it ain't done, and I can therefore say little about this at present other than that I am very confident that it is something that can create market interest.
Mineral exploration is an expensive, high-risk business. If mineral deposits were easy to find, they would have little value. CanAlaska may attract investors because of one particular project, but the company continues to move in new directions even while providing substantial funding for current projects without depleting the treasury.
If VBE-1's Hole#7 hits nickel, most of what I've said here is moot. If it doesn't some disappointed investors will sell CanAlaska off, providing a buying opportunity for those astute enough to see the bigger picture.
Robert Douglas Hickey
Director, Manager of Investor Relations |
