The 2nd Chance
I've reviewed the new report... Chance's second report... that is actually defining the company's third chance to try to get it done right, this time with increasingly and embarrassingly specific direction.
It basically echoes a lot of what I've been saying recently... while including some new information. Chance is credibly and uncompromisingly independent in addressing multiple failings identified in multiple areas. Even if he does so in as gentle terms as possible... there's no mistaking this as (deservedly) taking management to the wood shed. It's also clear that this was a product done in a rush, as it contains a few minor errors, a number of typos, and it has problems in one or two other things... but, clearly gets the main points across.
It makes it clear my recent criticism has been spot on... management clearly has struggled and failed in their FIRST PRIORITY effort in properly re-locating the historic grid. I note that it does properly name those who were hired to do that work, which bit was mis-stated in company PR. It also mimics what I've been saying in terms of how obviously "not hard" it is to accomplish that task... if you do actually TRY to accomplish it properly. I still don't know how its even possible to have NOT gotten it done right... before now.
He notes, as I did, that picking a few holes as reference points, ones that should be easier to find based on knowns, and then looking for them using the right tools, should make short work of it. He points out a known in a reference point with a metal pin marking it, and four holes known to still have the iron collars intact... so five points with metal that should be easy enough to find with a $40 metal detector... making SRSR the only company I know that needs to pay for an updated 43-101 report to tell them to use a @#$%^&* metal detector to find missing metal. Following my recommendation to use a GPR would (if used properly, cost more and) allow them to find even those missing holes that weren't left with collars intact. I agree that finding those points he suggests would enable having a high degree of confidence in the integrity of the historic grid... and that it should enable bringing the historic work current... exactly as his first report said it would.
Bottom line, it says that pairing the dual benefits in 1. having access to core found in the Timmins library, and 2. having located a single point giving evidence of the historic grid... when taken together with the evidence in the many "confirmation" holes they've already drilled, should be sufficient to allow them to define a resource... but it will only IF they can manage to get those things accomplished which he suggests must be done... while accomplishing them without screwing them up... AGAIN.
Even then, what the new report is saying is that thus far the "value added" from SRSR's drilling efforts to date is essentially zero... so that the value in a current resource that can be defined now... AFTER they succeed in doing the work to recover the grid... will essentially be limited to matching the resource that the historic Gulf Dominion holes proved by having that work being brought current...
It's good news that's now the sole primary and fairly minor obstacle to defining a resource. But, that's been true for quite a while. If they'd done it right in 2009... we'd have had a resource in 2009. We've basically been $35 K away from defining a resource since we started... and we still are.
I'll have a few more comments later...
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