Hi Quinn and All, I will find out this morning whether I will have to attend at court again, and for how long. Hopefully, this will be over soon. I know many have e-mailed me and I haven't responded because I just haven't had the time. Please bear with me and I will be back soon, I hope. I just had to make a couple of comments about the latest events.
The selling that I see took place on Friday was more likely the fact that there are houses, including Union, who took some big hits this month. A lot of investors jump in on margin at the beginning of January, figuring they will have a sure hit, and when it doesn't come, they are left hanging in the breeze. If they did it without the money to pay for the margin call, then the house will sell out any, and everything, that the person has, and at whatever price they can get. The balance left on the books is the brokers responsibility to collect, but if he can't cover it all, then the house has to wear it until they collect from the brokers commissions. I heard rumours that there was very heavy hits on the houses this month and so I am not surprised. I wouldn't read too much into this, vis-a-vis PFG, although I am sure none of us are too happy with the pace of events, and the regurgitation of old news as a summary nor the price of the stock.
A few questions enter my mind, and one is, if Corriente has so much money in the kitty, then why are they dealing off some of their properties? God only knows that their results from the Taca Taca were not anything to get excited about. I would have thought that they would have been interested in holding on to properties which were in such a strategic location. I'm also nervous when a company I own stock in, has a director which is shared by the company that it is doing business with, even though, strategically, it sounds like a good deal for PFG.
The property that was in the news release, that PFG intends to do D.D. on, and if it checks out take the option from Corriente... Is this Fantasma and Cateo the same ones posted in Corriente's news release dated August 26,1996? If it is, and it sure sounds like at least one of the properties is, the other being 600 hectares, according to the news release. Here is a description of the property taken from the Corriente news bulletin of August 26,1996:
The company also acquird an option to purchase a 100% interest(subject to a 2% net smelter royalty) in 6,000 hectares south of Cerro Samenta. The terms of the option call for an initial payment of 1,000,000 shares of Corriente and an additional 1,000,000 shares on receipt of a feasibility study. Further cash payments of US$1,350,000 have to be made by September 4 1999 including an initial payment of US$150,000 due September 4 1996.(Sounds like one and the same, don't you think?)
The claims cover an area of known porphyry copper mineralization. A survey crew is being organized to define boundaries of the claims to confirm the land status in relation to the Mansfield ground. The initial 1,000,000 share payment is subject to confirmation of satisfactory claim title.
The next comment is in regard to the despair that some have voiced on the thread about PFG. I took this excerpt from PFG's own website, under the Diablillos Project, and bear in mind that this was done some time ago:
Although there is a lot more drilling, engineering and metallurgy to be accomplished before a feasibility study can be completed to confirm
that Diablillos hosts an economic mine, the early indications are very
positive. As is, the Diablillos resource will probably be developed as a heap leach operation. While we feel optimistic about the documented resource, we are even more excited about the potential to significantly expand that resource. There is a large area of silicification that has never been drilled. Equally promising is the
indication that we are on the edge of the epithermal system (where Barrick's drilling is now concentrating), and the centre is toward the east.
NOTE THE NEW MAP ON THE DIABLILLOS PROJECT UNDER THE TITLE:
Geology and Gold/Silver Mineralization of the Diablillos and Cerro Blanco Properties
The only thing I would mention here is that the map seems to be elongated and makes it appear like it is a long way from the Cerro Blanco, but I have seen maps before which show that it is much closer than this map would indicate.
The other question that comes to mind is where are the results from the 2500 meter program which took place after the last set of drill results were released, or were they released while I wasn't looking?
The one consolation which we can be comforted by, is the fact that PFG does have a property with merit, and they have money in the kitty. That is a lot more than many companies on the VSE who, either don't have anything of value and have no money in the pot, or those that have a potential property but no money to explore. The former companies will, no doubt, end up being delisted and their shares worthless, and the other companies will probably have to deal them off at a cheap price or take on a partner with deeper pockets. I'm hearing that there will be quite a few companies delisted in this coming year.
As far as the price of the stock, just look at St. Jude. They came out with very good results and the market just said, Ho Hum and it suffered the same fate as PFG on Friday. Very suprising, but it tells you the mood that's out there right now. I think it's going to take a higher sustainable gold price and a few really good news releases to kickstart this market. Market sentiment towards golds is still very lukewarm, but I still believe there will be a rally this year.
Must run now, but I'll get back to everyone when I can. In the meantime, "Keep the faith."
Cheers
Shirley |
