Alan, you and I got into a bit of a pissing contest on another thread over MINE and IKAR. I found your opinions well thought out but your tone angry and mean-spirited. Your buddy Ga Bard was downright arrogant and mean. You both have trashed MINE and anyone associated with it. I appreciate the change in tone and will endeavor to attempt to answer some of your questions.
First of all, I agree that your DD to date appears quite superficial. It appears to be mainly gleaned from Edgar filings. There is a whole culture around this story whose essence seems to have escaped you so far. There is a lot more to be discovered within that culture should you choose to do so.
IMO, going back to the time period you refer to last year, the company had embarked on a strategy to commence limited production in the shaft in order to create cashflow. This decision was based on conclusions reached from the Trite report. After they started production in September four unexpected things impacted the operation. First, the POG kept dropping which affected profitability. Second, recovery rates of the gold weren't as expected ( hence Zambrana in the picture later ). Third, operating costs were higher than expected. And fourth, the newly formed Advisory Board recommended that the higher cost shaft operation be abandoned at this time in favor of lower cost open-pit operations elsewhere on the property. Guido confirmed the open-pit operation would be much more profitable even with the company producing on a small scale basis. I think we must keep in mind that the company did not and does not have the money or expertise to fully exploit the potential of this property. It is always more expensive to operate on smaller economies of scale, but sometimes worth it when seeking cashflow as you continue toward your ultimate goal of proving the entire resource to the world. So Zambrana was contracted to provide the methodology for enhanced fine gold recovery at the open-pit operation.
While the changeover was being planned and prepared the rains began. Many sites were flooded and all operations were put on maintenance. As shareholders, we found this out later than we should have IMO, and many of us were ticked off, not by the unfulfilled expectations but by the period of time it took us to be informed. IMO, during this time period management decided upon a different strategy. Rather than put the time and effort into limited production they decided to prove up as many ounces as money would allow and seek out a JV partner after the share price had hopefully risen due to the proven reserve and inferred resource numbers. We're about half-way through that process now.
Nothing has been easy for this company. The SEC has been hounding them since before the Bolivian property. They have made some errors as any company at this stage of their development would. They are indebted. There appears to be a 30,000 oz error in Guido's latest report which puts the entire report in question so management is not able to make a synopsis of that report public as of yet. It is unclear from Friday's 8K whether Behre Dolbear has been hired as a resource for the Wells Submission only or to conduct third party on-site verification or both. Hopefully that will be cleared up soon.
What is fact is that not one insider has sold a share or profited from this since the Bolivian property was acquired. It has cost them nothing but millions of their own money and God knows how much frustration over time. Still they steadfastly pursue the goal they believe in despite the naysayers and the obstacles. I like these people. I admire their guts and resolve. They might just make winners of us all.
CIMA in Calgary caring for the kids while my wife and her mother are out on the town.
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