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Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers -- Ignore unavailable to you. Want to Upgrade?

To: marcos who wrote (68181)	11/26/2009 6:15:08 PM
From: Earlie	1 Recommendation Read Replies (1) \| Respond to of 78426

Earlie from Earlie: Ventanna dropped a stinkeroo after the Canadian market closed. The company disclosed that it has a dispute on its hands with respect to the property it is drilling. When I wrote a comparison of Ventanna with Greystar a while back, I made the point that Ventanna "controls but does not own" etc. I also pointed out that Greystar owns its properties (months ago, when I was doing my homework on the Ventanna scene, I heard rumors that others had bi-passed their property because "clear title" might be difficult to acquire). Of course, a simple explanation of the situation might well be that this is a standard "shake-down effort".... not completely unknown in the gold business. The last sentence in the company's announcement references the fact that the company is in discussions that could lead to the company being acquired. While the cynic in me suggests that this is simply an attempt to offset bad news with perceived good news, one should not discount the possibility completely (although the timing is ah,.... er,... "remarkable"). Eike Batista owns a significant chunk of Ventanna's stock and has publicly announced that he will be raising $2-3 billion to consolidate the better gold plays in Colombia. Batista is incredibly rich and South America is his home arena and it is for sure that he knows how to to play hockey in that rink. Keeping an open mind is going to pay dividends as this situation evolves. At this end, I believe (and have written) that Batista has also been acquiring Greystar's stock. My reasons for believing this relate to the fact that while Ventanna's drill results have been excellent, - a 43-101 resource estimate is still not available and the company has been very slow with respect to "step out drilling". - the drill results outline a deposit that is both deep and difficult to get at (water, indigenous miners, topography, etc). - Ventanna's future would be MUCH more viable if it was combined with Greystar. In summary, I think that serious players are developing an interest in Greystar and in this sparkling gold camp. I also continue to think that Greystar holds a very fine set of cards at this poker table. Tomorrow's trading should be very interesting. Best Earlie