Explor Resources Inc New EXSFF

Mixed Bag

[PhillyJack]

The news that Teck is out comes as a disappointment, but does offer certain opportunities for EXS. Yes, the company does get 100% of TPW back, which is good. But the flip side is EXS will now be paying for all further exploration and drilling. Teck and EXS geos had not seen eye-to-eye since almost from day one, so this was a poor fit from the get-go. I reasoned that Teck was probably looking to flip the property anyway, but in the end they simply returned the property to EXS at EXS's request. EXS will eventually have to partner with another major on TPW, sell the property, or get bought out. No way is EXS ever going to advance a project of this size to production on its own. Many years ago I took a position in a company called Arizona Star. They had a large low-grade gold copper deposit in Chile. After the Bre-X scandal and the fall in gold prices, partner Placer Dome backed out and returned 100% of the Cerro Casale Project to Arizona Star. A few years later, Barrick bought them out for 600 million plus. The shares went from under a buck to over $17. Am I happy that Teck is out? No. But does that mean the story at TPW is over? Hardly. With EXS drilling on TPW soon, and Tahoe, Goldcorp, and MEK busy on either side of TPW, expect news to break eventually. For those of you who predicted Teck would back out, I say good call. But if anybody is writing off TPW at this juncture, history says you are being far too hasty. The ball is now in EXS's court. EXS says Teck didn't understand the geology, didn't know how and where to drill. Now that impediment has been removed. Let's start expanding the known resource at TPW! GLTA