JP,
First, let me say that I want companies to succeed in Alberta. New discoveries will help all involved. It is an ill bird that fouls its own nest.
I would also like to point out that the posting you referred to is from May 5, 1998 and was referring to land south of ACA (where they have already drilled). It was correct at that time and is still correct today as witness by the bounce over the last few weeks.
You asked for my opinion on the latest news release. My opinion is based on general knowledge only and should not be given more weight than anyone else's as I have not spoken with Montello directly over the last few weeks.
This agreement is not finalized. It is a letter of intent only. I expected this (some sort of a deal) and below is a quote from my July 13, 1998 issue:
"Montello Resources Ltd. (MEO.a/$0.35)
montello.com
IF YOU CAN'T BE GOOD, BE CAREFUL
Montello is an Alberta Diamond Play participant and has some properties in close proximity to Ashton. Most of these properties are under deep overburden. For this reason, I dropped MEO from our open position list at $0.50. It has shown strength in the past couple of weeks due to rumours of a joint venture deal with a major (believed to be Kennecott). If you still own MEO, I suggest you use the liquidity created by any such announcement as an opportunity to exit. The strength on any such announcement will be short lived."
The deal is week for Montello because it is not yet a commitment. Lets see if the deal closes in its current form (which I already consider week for MEO). My opinion is echoed by the market and goes against my wish to see the deal close for the betterment of the ADP.
The release also states that the property "is located 50 km to the northeast of the AEC/Ashton/Pure Gold discovery block". This is true when taken from boundary to boundary. However, in actuality, it is 110 to 175 km NE of the Ashton pipes and off the craton. I suggest that those interested should also do some due diligence regarding overburden, geological setting, access and age of that region.
I wish MEO success as I do for everyone looking for diamonds in Alberta. Based on my personal criteria for identifying companies, which includes strong management, the time to move on was at $0.50 and during the bounce over the last few weeks.
I do not want my opinions to be taken out of context and am not interested in taking sides or interfering (I am only posting because I have been asked). I am not suggesting that MEO will not present opportunities for speculative profits in the future. All stocks have their ups and downs. There is no tree but bears some fruit. My search is for sustained moves through potential discoveries. I wish MEO success as it will help all ADP participants.
Sincerely,
Sudhir Khanna, P.Eng.
Editor, The RESOURCE INDICATOR
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