RE: MD&A Pg. 6 / 24 Aug-2012 From the Aug MD&A "-A proposal for a modular gravity concentration plant for the Peters property has been recieved and is under review."
So what exactly does the above statement mean? Here's what I think it means.
A gravity concentrator is a device used to separate solid gold, silver etc from the ore in the preprocessing stage. It is usually used when there is a fair amount of fairly large solid gold, silver etc in the ore.
Since these guys don't [at least at the time of the MD&At] even have a licence to mine let alone possibly have done enough drilling to determine if a concentrator will be needed, why would they even mention it at this point?
IMO one reason would be to mislead anyone reading the MD&A into thinking there's so much gold lying around that they already know they'll need a concentrator [also thererfore implying that there will be a mine].... without actually saying so. Cause if they said it outright it would be extremely misleading. So they mention a concentrator randomly and hope the naive junior investor will imagine everything else and buy vigourously.
If any regulatory body asks, the company was simply making a statement with nothing else implied. Cue the wide eyed look of innocence.
Even when the surface samples come in they will not be any indication whatsoever of the grade of anything underground. A surface sample is only an indication that there may be something interesting in the area. Anyone with any experience in these juniors knows surface and trenching results are almost meaningless when it comes to underground grades.
If they were an accurate guage, 90% of all junior explorer would be producers because most of them seem to have quite good surface or trenching results that never get matched by drill results.
Not saying it's GPM management's intention to mislead. I'm just saying that after about 10 years of following this company it was the first thing that crossed my mind. We'll leave it at that.
A good way to keep perspective and stay skeptical when gambling on Venture exhcange micro cap juniors is to keep the quote about gold mines, attributed to Mark Twiain, in mind.