helpful I hopeHas this system been down all day or is it just every time I tried to access. After my day with Terry, Steve and some major shareholders I’m extremely convinced/confident in Chesbars future. It was truly educational and very reassuring once I was shown the ropes of the business (learned just enough to be dangerous). As most are aware I’m not the best writer and never have claimed to be one so you will have to put up with my bouncing around.
To start off the technical staff know exactly what they are doing and know more about the property as they also needed a learning curve to figure out the lay of the land. I can see extensive wasted drilling that was done in the south part of Laselle (my calculation was about 15+holes)due to Barricks wishes to thoroughly drill that area. Now that we are calling 100% of the shots drilling will be defined by the MMI and with the quick turnaround of assays they can move at once if less then expected results. Since the MMI wasn’t done on the south the pressure was to keep going with the original plan. The MMI has lined up perfectly with the strong assays to date and to my understanding the company doing this procedure has used CBI’s data as an example to other companies. The plan is to drill on the north side of 2000 as the MMI has been completed on the rest of Chesbars properties and when the affectation permits are received (expecting any day)they will drill on the other two new zones(Guaiquinima and Anococo).They will ,when data is proven, start up a second drill but only when they are on the right trail. Again with the 7 day turnaround 4 or 5 holes won’t have to be drilled while waiting for assays. I’ve seen enough to believe we have a great shot at a large gold deposit on all three properties. There is however no denying the fact lots of drilling is ahead of us. I, like everyone else was looking for the staff to say they have X amount of gold but it is truly too early. I’ve seen calculations of 300k to 3million on Lasalle(assuming certain values on north end) but again is the width 200m,the depth 130m, and length 2000m?. What is the wasted amounts between zones?. So I’m sorry to say that I didn’t come back with a definite number for us. One thing that I came back with is the belief that this property will be mined.
On the political front the preference was Romer but things are looking good thus far with Chavez saying all the right things. His appointments are the concern and I have heard that the names being brought up are very encouraging. I have been reading article after article about the political issues and it seems most are giving Chavez the benefit of doubt and lets wait and see attitude. I read today the Markets were up almost 19% in Venezuela so some are expressing confidence in the hopeful economic turnaround. Management is extremely confident that all contracts in place will be honored and the government needs these juniors as in house expertise isn’t readily available rather none exsitstant. I too believe that even if this Chavez turns out to be a Lonnie Venezuela still needs foreign investment.
The Placement was a big discussion with the larger shareholders and management and I expressed why not just 1 million since the treasury is kicking in the other 500k.I thought that if we just replace the Barrick money then we have less dilution. With 1.5 mill the program will be 60-70 holes (depending on certain factors like infrastructure and varying depths. If we don’t prove ourselves after that many more holes over all three zones then where we going anyway ?.If results are good then raise money later with a lot more clout or then its time to resume talks with the majors. I found most in agreement so if management agrees we could close ASAP at 1 mill and then the stock will have a chance to move. As it is now the stock will hover in this $.40 area as people are in a Mexican standoff on buying and selling. My money is in so I hope this will happen and our results before year end are good enough to show the extension of Lasalle’s already proven major gold deposit. I’ll be more excited once we drill on the other two zones which should have the biggest impact on our stock if we even have a minimum mirror image of Lasalle. Again the biggest thing that I learned from my visit was until many holes are drilled resource calculations can be all over the map. My bet obviously is it will be a multimillion oz deposit. As to how many is in the air but min 2 mill (<$150 cost)will still give us great value in comparison to our mere 16 mill market cap. Hope this is somewhat helpful and keep fingers crossed for good results before yearend.I also hope I made sense as it is late and a very long day.
Stubbs