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Gold/Mining/Energy : Flag Resources (FGR.A A) -- Ignore unavailable to you. Want to Upgrade?

To: Berry Picker who wrote (3487)	8/5/2000 1:26:13 PM
From: ali	Read Replies (1) \| Respond to of 4269

Hi all. The following, while nothing new to me,was posted at SH and I think is worthwhile to be read here too: Well folks, I had breakfast with a couple of owners of Flag and Golden Briar stock this past week and as we chatted it became obvious that the three of us held fairly respectable positions. Now you could say it was the meeting of the three wise men, or many the three stooges and I expect it may be some time to decide which it really was. It was clear that Flag and Golden Briar is far from the biggest holding in any company that any of us had, and all of us saw this as a speculative play. But as we shared notes, research and discussed the various companies/players around Flag/GLB's property it was obvious that we all believed that we had a good investment in a very rich area of the country. We also agreed that to actually cover 70,000 acres or anything close to it was a big task for even the largest of exploration companies so patience, while hard to come by in the exploration investor was indeed a prerequisite in this type of play. I mention this because as the discussion on flow-through shares, the tax advantages and the need to keep the investment for a min of 1 year was discussed, it was obvious that none of us would really be happy if this spiked up to whatever value, only to come crashing down in weeks or months. In fact we all pretty much agreed the float is slim out there for these companies and if you wanted to be short sighted here, between the three of us we could pump this stock to $2 with no problem on the credit limits of the credit cards we were all holding to buy breakfast. So if it was truly pump and dump, become the market maker as some speculate it could be done. But then when we discussed how we got out positions, the great deal flow through shares were and the guarantee of putting money right into the ground, and the total amount of money raised by Flag and the hugely high percentage that went into the ground, maybe more than any small exploration company on the market - that if anything Flag was pretty much a well kept secret for a company with 70,000 acres tied up. So what you say. Well the so what was that all of us expect to be shareholders a year or two or three from now in this company, unless they hit big and some firm buys us out. While Flag/GLB have spent a lot of money in the ground the amount of shares as compared to the other exploration companies is very small. We are not dealing with 60 million shares out there or something. As well the percentage of the claim they keep (Flag/GLB) is extremely high as compared to a number of these firms. For example and taking nothing away from our neighbors PFN, look at the number of shares, what portion the PFN shareholders actually receive if they do open a mine there tomorrow morning. As for this latest drilling play we are all extremely optimistic. We have all heard that the last hole at 80 degrees hit mineral again. as did the vast majority of the holes around #15 and in many cases it was all calcopirite just like the Rathburn occurrence. Obviously show us the money (or in this case show us the assay reports) and they will be out in something less than a week. And when they come out we may look a little wiser and be able to exercise our rights to brag a bit, or we may look a little more like Larry, Curly and Moe. Which ever happens, this is not the end of the drilling on this huge property. If they open a mine right with this discovery for example they still have way too much great ground to explore. In the big picture of exploration for the thousands of holes drilled by the hundreds of exploration companies, just finding veins of mineralization is a good sign that on the property you may have something. All of us obviously have our fingers crossed that these holes will assay out well and that the resultant price increase will help allow the company to fund future drilling and ultimately allow for a mine to be open. Oh and for the bashers, well if you don't have any interest either as an investment or as a short, then obviously you don't have a lot happening in your life or are to small a fish to even buy a ticket. Remember if you don't have a ticket you can possibly win the prize. A final thought, and yes the three of us will likely get together to network in the future - even Larry, Curly and Moe made money and more than one person thought they were crazy and dumb. Have a great weekend folks - the family and I are off to Montreal for the weekend. Maybe I will check in tonight from the Delta Montreal. Tim