Good read from The Simple InvestorColibri Report - July 11, 2007
I spent some time on the phone yesterday with President Lance Geselbracht. He returned my call made several days ago.
I was extremely impressed by the end of the conversation!
I will just list my discoveries in point form. I am working from rough notes so I may be a little bit off on some things but this is overall an accurate summary of what I learned from our conversation.
- because of the extreme heat in summer in Sonora (mid to high 40s C) they are holding back on any further drilling until approx October 1st.
- a bulldozer is either currently on the Leon property or on its way. Access roads will be built to proposed drill locations, and some deep trenches will be excavated down to bedrock in certain locations.
- October drilling will focus on Ramard and Leon using a diamond core rig on Ramard and a percussion rig on Leon.
- Selective material from past assays on the last Colibri drill program (results not yet released) is being returned to the Lab for further analysis. Some of the material caught in the screening that did not get assayed plus some more of the split core is to be part of this assay program. Confusing, but they are looking for something more than they got somehow. Lance said there would be a reasonably detailed report discussing the Colibri property in a month or so.
- They expect to issue a press release soon outlining their proposed work plan for the next 12 months or so.
- The company produced a very informative “Presentation” for Swiss Asia Corporation a short while ago. This “Presentation” in Power Point format was supposed to be posted on the website by last night, not yet there? SWA picked up 1 million shares in the last financing. Lance said this presentation has a lot of useful information on it for shareholders.
IMPORTANT IMPORTANT IMPORTANT
Leon Property
The Leon Property borders Georgia Ventures recent acquisition of the Creston Molybdenum deposit.
Read This Carefully…
Georgia Ventures announced March 26, 2007 (check out their website) they were paying $20million for this deposit – plus - $10million in shares, for a deposit that borders Colibri’s Leon property,,, it gets better,,,
increased to $40 million…
“Wed May 9, 2007
Georgia Ventures Closes Cdn $40 Million Bought Deal Private Placement” (check out their website)
All this money was raised for a mineral deposit that borders Colibri’s Leon property.
The geology of the section of the Leon property that borders the Creston Mine is the same or very similar,,, it gets better…
The Creston Mine is part of the same fault that is located on the Leon Property. The top of the fault slips onto Creston, BUT feeds from Leon. Anyway, that is how I understood the conversation. Lance said we should really pay close attention to the info and maps on Leon that is part of the “Presentation” soon to be added to the website.
- Colibri staff will be conducting an extensive soil and chip sample program asap on Leon in preparation for a fall drill program.
- the website is supposed to be brought up to date with a lot more information and maps posted there over the summer.
Colibri Property
Lance did stress once again that Penoles drilled a fence of 10 holes right along their boundary line, so joining the dots I would say the Colibri Property will get it’s share of attention when the time is right. Lance said that the ground is somewhat difficult for drilling and they need to drill quite deep so this could be expensive. They need a RC rig for this work and these rigs are all tied up - it may take some time to get one contracted.
Summary: it looks like Leon is the new hot property; Ramard should continue to advance with further drilling this fall, and as far as the Colibri property goes we are on hold with any insight until the company decides to enlighten us.
I was thinking recently that I should lighten up on my Colibri holdings on any strength but now am thinking just the opposite. Management IMO are still struggling with some organizational issues so this likely will not be a short term slam dunk, but potentially all 3 of their properties could be Home Runs so I will likely be quite patient.
With 43,648,235 fully diluted shares and recently trading at approx $0.36 we have a company with potentially: 3 home run properties, fully cashed up, sporting a market cap of only $16 million FD. Too many times I traded out of positions of other stocks because I got bored or impatient only to watch them spike to become 5 or 10 baggers a few months later. I think I will hold onto my CBI shares for quite a while, or until the market catches on to what they have.
Warrants
For anyone wanting to take a substantial position in the short term it will be difficult to do so without spiking the stock price. One way to do this would be to purchase their tradable warrants CBI.WT. Since these warrants will expire July 28/07 the price is in bargain territory of $0.03 - $0.07. Two warrants and $0.30 gets you one share of Colibri. You will have to ensure you exercise these warrants prior to July 28 so Lance provided me with the contact person who is handling these for the company:
Janet Cleary
Pacific Corporate Trust
Phone 604-689-9853
I suggest you give her a call if you plan on going for the warrants. I don’t know how you will be able to take an overly large position at this time any other way.
I currently hold approximately 75,000 shares and no warrants.
Doug Beiers
The Simple Investor
July 11, 2007