Bruce: There will be news out within the next couple of weeks. They may wait for the issuance of the 68+2 sixth generation COWs. IPJ and DAYK are waiting for seventh generation COWs which I believe there are around 300 of them to come to various companies. The hold up of these COWs appears to be Bre-X related. While the Indo Govt has "said" that the hold up of the COWs is not related to the Bre-x saga, IMO it is one of the main reasons.
I have researched IPJ for over one year and find this company to be quite stellar. As McBrody has stated, their Hinoba-an CU property may vend for 3 cents US per pound of CU and there are expected to be 400 million tons grading if I'm not mistaken, about .47%. That would be approx $75 US to $150 US million US depending on the price of CU. CU pricing is quite decent right now. You may find it interesting that IPJ has an option to buy a CU mill for some $5 million US and this mill can be transported to the site by barge, (they dismantile and reassemble it).
I find DAYK to be a no lose situation right now. The deal is 3 DAYK for 1 IPJ share plus for every DAYK share you will be getting 1/12 share of IPJ Warrant exercisable at $5.50 for one year.
Remember that DAYK has a valuable asset in ownership of 20% carried interest in IPJ. There is a distinct possibility that IPJ is wanting to buy out DAYK to extinguish the carried 20% interest.
The Sebuluh COW has preliminary drilling being carried out right now with a shallow DD drill. There will be three holes drilled. The second hole had visible gold. It is Brody's theory that these assays for holes two and possibly three will show 9 gm/t over good depth., If this is true then DAYAK will have strong upward pressure and IPJ will likely have to sweeten the pot. Note that DAYAK has had significant number of trades since the consolidation proposal was announced. This shows me that there is some $$$ etc on the table to be picked up relatively risk free. Now that the Bre-x saga is "sort of" behind us we should see a measure of confidence return, not fully, but somewhat. IMO we will now value strikes with lesser value, say $50US vs $100 US, however, this is not really too negative if we in fact do have a strike here.
My other postulation is that IPJ is trying to extinguish the 20% DAYK carried interest in IPJ potential strikes. Therefor, one could assume that IPJ has made a good find on L-N COW where they are drilling the easterly end of the Sebuluh fault, or on the Jurassic COW where they have a couple of prospecting teams working.
The Sebuluh fault is apparently 25km long and could by my estimation run 2km on DAYAK Sebuluh COW, 18km on IPJ L-N COW and there is another 5 or so km on other lands which IPJ has stated they are PURSUING.
Pun intended. Look up some of the old releases and you will discover that chip samples from the fault have quite good AU values. I concur with the Brody suggestion that the Sebuluh fault is in fact a stike. Time will tell, how BIG is the strike? Time will show us this. We will have a bit of a wait until the COWs come home, but the wait will be worth it IMO.
There will be lots of news coming out of Indo once the COWs are issued. There will also be movement potential in IPJ/DAYK due to news from companies working is close proximity. These companies involve BNO, PCR, DIR, Tandem, Bresea, Indomin, YRI, ING, Canarc and others. You will recall that IPJ moved to $6.60 C$ in September when BNO made their announcement of a find which, incidently, may be nothing. Note that BNO hasn't really confirmed that there is a find, however, there are scattered references to BNO in fact having a find. One thing to watch is if any of the companies in close proximity to a real strike, watch for the potential for a quick flip if the news is substantial.
Hope that this gives you something to chew on, please feel free to request additional information.
Best Regards,
Ron E |
