Joseph,
I had a long talk with CVR yesterday. Wrote a little something up for Stockman, Waaco, and the Waaco Investment Club. By the way, they've got what they say. Problem is nobody knows.
CVR Update
Washington State Scandium Property
"Phenomenal deposit", are the words of one major mining company high official who walked the CVR Washington state scandium and nickel laden property on Friday. This same official also noticed that CVR had possibly underestimated the size of the deposit by at least 50%.
The major is definitely interested. In fact, there exists a rumor that CVR could have a deal with this major in a matter of days, but I wouldn't hold my breath if I was you. However, get this, the major couldn't wait for the end of Monday's Canadian Thanksgiving to get back to CVR.
Not only does this 3.2 million stock cap, half a million float company have a a good chance of getting a new mining partner, they also have been approached by a major scandium customer who is having problems with their present source of scandium. This user is having difficulty with producing a quality product with their present source of scandium. In addition, they have tested the CVR ore and found it to provide a much superior quality of product. A more comprehensive testing of the ore has been requested and negotiations for executing these trials are now progressing.
If a junior has a potential customer, would that make the major even more interested? Pure speculation, but my guess is "yes".
Durango Gold Concession
CVR has found high grade ore shoots in the shaft presently being drilled at a location approximately at the site of the old El Hogar mine on the Durango Concession in Mexico. The shaft, presently at 250 feet is targeted to be 500 feet when complete.
The El Hogar site on the Durango Concession has discovered high grade ore shoots, unknown to us until now. In the past, the site is reported to have had gold content of up to 3 oz per ton and 18 kilos of silver per ton according to local records up until 1940 when the mine was closed. In 1940, 7 people were killed during a mining accident there and ever since then locals have been unwilling to return to the mine for safety reasons.
CVR has brought in Eckardt Coppen, a well known mining contractor with experience in Canada, SW US, and Mexico, as operations manager at the site. He has been on site for some time overseeing the property's 13 mines, 4 of which have been reopened, upgraded, and made safe; and 1, previously mentioned, whose shaft is still being dug. All 5 of these mines are commercially viable and loaded with gold and silver.
Coppen is managing a crew of 25 and an independent shaft contractor from Ontario as they collectively finish the shaft on the 5th mine, prepare all the mines for sustained and safe ore removal, stock pile ore from all the mines near the mill for sustained operation of the mill, and insure that all equipment is in a good state of repair in anticipation of startup.
Coppen already has $3,125,000 (USD) in excavated ore just sitting there by the mill. This doesn't include what's still in the mines, including the newly discovered high grade ore shoots in the El Hogar mine.
Richard Garrnet, a top official with CVR, is said to have called Coppen the biggest asset on site next to the crews and the gold.
The Durango site is still targeted to become a producing entity toward the latter part of October. For your information, this site was to be producing by the end of September, but abnormally high rainfall during the rainy season delayed work significantly. Now that the rainy season is over, work is progressing at a feverish rate.
The Morningstar Property
The Morningstar property, as reported earlier, has a significant amount of gold reserves on site. The value of this property in gold alone is $5,625,000 (USD). However, unknown to me earlier, this site is also the home of water, power, a mill, tanks, and other necessary equipment that would allow anyone to easily restart production at the facility.
Interest in the property is growing and I have heard through the grapevine that the site has been visited by 4 mid size mining companies, including one a week before last, who are interested in restarting production of gold at the site.
Overall Comments
There is so much that could be written, but CVR does not want to prematurely say much for two reasons:
1) The potential for damaging negotiations in process.
2) CVR's fear of unnecessarily creating a emotional response to the stock that may inflate it prematurely.
However, they do have a lot. Look forward to a press release sometime this week or early next week.
In total, for these three properties, CVR has way over $232,000,000 worth of producible and marketable NET assets. And, get this, the company is only trading at $5.92 Million market cap (U.S.)!!! Remember, a typical producing mining company trades at 10 to 30 times its earnings per share ratio. Earnings will be significant from not only switching production on at the Durango Concession but potentially from the partnerships CVR and others are seeking to create.
FOR FURTHER INFORMATION PLEASE CONTACT:
CONSOLIDATED VISCOUNT RESOURCES LTD
Leonard J. Harris
President
The Marine Building
830-355 Burrand Street
Vancouver, B.C. V6C 2 G8
(604) 488-0133
1-800-665-9404
(604) 669-5715 (FAX)
Ask for the details - they will tell you.
Ask for their investment packet.
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