DEFINING THE RESOURCEThe bottom line is:
Early 2007 defined almost 1 million ounces (deferred category).
2007 and 2008 drilling seasons used to bring inferred resource to indicated and increase both categories as much as possible.
With the drill results they produced in 2008 this should have been a simple task. Two years of drilling to prove the inferred resource during which they got drill results any other miner would dream of getting, and yet no indicated and not even any more inferred.
They failed in their objective.
Possibilities considering that the drill results show a substantial resource of high grade gold and silver exist.
A) There is not much gold and silver (drill results so far make this highly unlikely).
B) A scam----least likely scenario.
C) They did not know how to drill to at least prove the inferred resource.---incompetence---a strong possibility. However what action are they taking to correct this problem?
D) Takeover play---keep the share price down and the shareholders worried---this is in my mind the most likely scenario. What shareholder right now would not jump at 60 cents a share (January’s high) just to get out with a small profit.