NR OpinionI asked some very pointy questions but don't have a reply yet. I think it may take a couple of days.
The company looks like it plans another PP. There have been some issues with financial control. There are enough options to fill the kitty but I suspect they will want to raise anothe 4 million. (It would be wise to do it soon). The set backs were not a surprise, I already knew the reasons. They do expect things will take a month longer. Kudos for saying so. I have been calling for completion by the end of the summer so don't be surpised if I'm right.
I plotted the silver layers and saw defects in the reporting. Averaging the layers to fill in the gaps revealed that they have almost double what was reported. I expect this to hold true. The silver was improving with depth and to the north. Mike couldn't tell me they were going to delay but I knew that was a smart idea. It's way too much money to ignore. Look at the samples from the new land!
Using a statistical approach you can quickly see there really is 3.3 Schaft Creeks there. Given the ground density for this type of deposit and the distribution of the concentrations the above may be an understatement. The airbourne should be a real eye opener. The Titan (already booked!) will wow the crowd. I have no doubt drilling deep as planned will be stunning. This should turn into a 25 billion pound find. (Copper pounds not gross tonnes). Add in the other goodies and it becomes increadible. Cost per pound will drop by a little more than double the current estimate.
A.M.I. Teck has the legal right to consider buying the new properties as part of the package. This is why they let CUU buy it on spec. The risk is CUU's. Should this prove up I have no doubt Teck will move quickly. Now that this info is out there we should get an offer of partnership or an out right buy out. I'd expect it just before the RE but certainly right after the RE. Since a director loaned 1.5 million (we know who you are) this offer should be rejected. We are better off with Teck until they find a takeover for us. I point out here that for work flow reasons this acquisition should have come earlier.
The Dunn shares are a value added grab. Teck obviously didn't want to waste the time on negotiating a prices. Just too small for them but really good for us. Teck is not worried about the balance of power.
We should have 406 in 2 weeks if all goes well. Melting etc may delay it but certainly no longer than 4 weeks. Results in less than 6 weeks. This hole is worth waiting for. The new deep shots will also have us giddy with sugar plum fearies dancing in our heads as we add up the take. These will make it all worth while. Since the start date is mid May what is happening is a huge raft of info will be reported all at once. I question the judgement of this timing. Everything coming out in a 1 month?!?!?! span. Elmer, what are you doing? We want a steady run up not a super parabolic ride up. At least we get other NR worthy data in the mean time.
Nothing in the MD stood out and warranted a detailed investigation. This is always good. Below are the questions I want answered and the motives should be fairly clear if you read the financials and want more clarity on the Teck relationship.
Email to the company:
I have some questions for Mike and Elmer.
Can you tell me who is responsible for the company's PR?
I'd also like to know why the company bought the land now instead of doing it last year?
Can someone tell me why Copper Fox got Dunn's shares instead of Teck?
Will the silver re-assessment be in this RE or will you use updated RE's as your way of communicating progress?
Does the company plan to dilute shares to bring in a large financial partner this quarter?
Would someone please provide a clear statement of affairs with respect to the new acquisitions? (We don't even know if it falls under the Teck earn back in agreement)
Where does this leave us. Without the required events I would peg us as a bargin at $6.35 before proof. After proof we will be over $7. If we head into production then $12 is fair. I'm raising more money to buy more shares. The word was a minister would be coming out with an announcement and instead the former PM showed up with some BS about taxes in 2016. That was stupid on his part. Better to have the natives sign off then come with that first then come again with tax relief. So our minister will be here in about a week or less. As far as I know, all issues have been addressed.