JP will attest to my historic bearishness of MEO (hell. everyone can read it), and distrust for its management, but with this out of the way, I must admit that I'm impressed with the terms of the deal, and what they portend:
$275K PP now
$175K PP before January, 1999
$600,000 when the first 10 tonne sample is taken
Spend 30 million in 7 years, with $500K coming before May next year.
Now if Ashton had JV'd with MEO, we might have had some action! I think you meant to write "inaction," because that would be a little like inviting Southern Baptists to Mardi Gras; it would've condemned us to a plethora of calculated, precisionly-worded press releases that avoided "promise."
Witness, for example, Ashton's press release from today. In effect, what it says is "we'll have an announcement later this week." Pretty strange behavior, I think. Remember this is the company that promised news concerning K14 before October 31, 1997, and then issued a press release that day announcing that it would be delayed. It then came out on November 11, 1998. Why the sudden courtesy? grief, of the ACA thread, asked this rhetorical question as well, and I think we both know what the answer is.
MEO shopped Kennecott's fist offer to Ashton et al., and used them to counter. Ashton et al. knew this announcement was coming a shrewdly -- I think -- issued a press release today to take the bloom off MEO's rose.
Each sample is from a vertical reverse circulation hole on targets in the eastern portion of the area. The results returned only one microdiamond from kimberlite K-32, while kimberlites K-93 and K-15 showed no microdiamonds.
"Eastern portion of the area," I guess that would be the area over near the Legend block, right?<g> Then, just in case we were do dumb to make the connection, the company states:
No further field work is planned at this time on these three kimberlites. Excuse me, but has Ashton said this about any other pipes? I mean, is the company writing off these pipes on the basis of a single "vertical reverse circulation hole." What was special to the circumstances of these results that necessitated such a flamboyant determination? Yep, jealously IMHO.
But the intrigue doesn't end here. How large was the sample on K32, K93 and K15? Phone the company and ask, you'll get a "No Comment." Give me a break! MEO was more forthcoming:
Kennecott had performed $60,000 in due diligence before making an offer, and they've been working with the company for several months, assisting them technically. This known, I think that the company never intended to do a deal with ACA, but merely to extract the best terms from them. Again, with today's announcement, I'm looking forward to next month's drilling effort. Clearly they've got something there or Kennnecott love to throw money away. Time will tell.
Finally, JP, don't let this go to your head; you're already insufferable<g>
|
