| | | Sorry, this is a long one.
Much of the resource change can be attributed to a difference in geological interpretation. Tetra Tech did the most recent numbers compared to Moose Mountain with the 2008 numbers. Much of what was bumped out of M+I was unfortunately due to drilling density. CUU needed to infill drill their deposit instead of wasting money drilling possible new discoveries. For me, that is the consequence of a poor business strategy and one of the problems with having your QP as the CEO as well. The Board holds responsibility for overall strategy, and I have no doubt they all thought it was a good idea at the time (and it probably was, if Cu stayed at $4/lb). Retail investors can be expected to get overheated about the prospects of future copper prices, but professional miners are just as susceptible to the emotional drive. Even the majors did it and are now deleveraging to stay afloat.
My perspective is that the entire publicly-released geological program from 2010 on was unfocused and was more bent on generating buzz than substance. Geophysics, buying new properties, test drilling and other exploration efforts would have been fine if they did the work on the main deposit, but there was not enough money or resource (or time) available to do the boring infill work, and they paid the price along with shareholders. The TT QP basically would not accept it and came out with a reduced RE. The sequence of NR at the time in 2011 are consistent with this difference of opinion between the company and TT, including bringing in the PFS Geo to advise. I posted these thoughts at the time when the RE came out and I recall a few of the more excitable posters going ape.
There may be more, but that is in the realm of educated speculation and I sure won't put it on a public bulletin board. You can figure it out if you dig a bit and know a little about porphories. There is a great analog deposit for SC.
It's water under the bridge. We're all responsible for our investment decisions and even if we were unduly influenced by promoters like Vette, we still pressed the buy button and you can sell any time. I still see the same nonsense going on with other companies, my favorite to watch right now is NCU. There are some shameless promoters that now that I know them, I can watch them in action and see with some clarity. It really takes the urge to buy shares away. I've made investing mistakes, but the key is to learn from it. Really learn, bear the pain, and move on.
I made a bad mistake with CCY. It had everything going for it, but I underestimated the bad karma effect that the management generated with their other company BAJ. It basically killed CCY out of the gate. I saw the issue, but told myself it would be different with CCY. Well, I lost about 40% of my investment, but I learned a lot. I've made it back in the depths of this market, including a whack of it in CCY part II with better management and now I have no time for BS forum promotions. Show me the numbers and demonstrate the quality of the management. Otherwise, it is only a trade. |
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