Laurion Mineral Exploration Inc V.LME

43-101

[StevenHunter]

I've been gathering questions in messages here on SH and by email for the past few weeks.  There are some themes that certainly became consistent and were posited by multiple investors.  None among them were more prevalent than questioning the current view of LME on the production on a Mineral Resource Estimate.

Seeing as it was topic #1 I grabbed a nice long conversation with Cynthia yesterday and she explained her view on it so thoroughly that I left very comfortable as a shareholder.  She will discuss this at the AGM to be sure but let's make good use of our time between now and then and table her view on the subject today.

The headline is that there is zero opposition to completing an MRE for Laurion.  In fact, any transaction will most likely not proceed without one.  Cynthia's view is that there is a tipping point in terms of exploration where the report is wise to produce in terms of risk.

What does that mean?  If you have only explored a small portion (relatively) of a property and then produce an MRE, remember that the E in that acronym stands for Estimate.  The risk of the process is having to revise it downward after it's been produced.  There are examples of this that you can find as easily as I can so I'll leave you to it.  The bottom line is that this led to the ruin of the companies that had to backtrack from the MRE they had produced and this only happened because they produced the report too soon.  They jumped the gun.

Cynthia felt that Laurion was getting close to the point where exploration merited the production of the estimate.  Doubling down on targeting by magnetic survey and drilling in the shaft areas is certainly part of getting across the finish line there.  The delta in that process now is the aquisition of the Twin Falls property.  Adding 10km of totally unexplored property to a 47km package is a major addition.  What that does is reduce the overall rate of exploration of the fully assembled property.

Add it all up and the finish line has moved out some so more exploration (specifically drilling) will be required to get that ratio to the point where the 43-101 is a less risky proposition for shareholders than it is today.

How much drilling?  Not an infinite amount but more than we've done.  Her target for exploration on the property (whether we own it or someone else does) is probably 10,000 - 20,000 meters north of where we are now.  Not a crazy amount but it's work to be done. to frame that we're approaching 50,000 meters of drilling after this program that's running now (roughly).

NOW..... what do we need to execute that program in an expedited manner?    Cash.  For equipment, for drilling contracts and most importantly for additional people to execute all of the above.  The human resource, per Cynthia, is by far the hardest one to access and get right.

What did Laurion add more of recently?    Cash. The more of that we have, the shorter the path to getting on the right side of the exploration ratio that merits a lower risk 43-101 report on the property.  Cynthia confirms that aquirors see it the same way.

See how all of that fits together strategically?  I know for me this connected alot of dots and I hope it does for you as well.  

Have a think about all of the above and if you have questions/thoughts let's have a discussion.  If this was a topic you had sent to me, the more time we spend on it here the more productive the time we spend on it at the AGM will be.

Hope this helps,

Steve

[Lambosntendies]

Not gonna lie that’s a bit of a kick in the guy to those expecting an imminent buyout. Some questions that come to mind:   If this was Cynthia’s intent all along (to do more drilling and produce and mre at a later date) why not scale up the drill program this year? It’s feels like if the intent was drill more that’s something we should have been doing on a larger scale this year. 

[StevenHunter]

If this was Cynthia’s intent all along (to do more drilling and produce and mre at a later date) why not scale up the drill program this year? It’s feels like if the intent was drill more that’s something we should have been doing on a larger scale this year.  Good question.  Keep in mind that Laurion didn't own Twin Falls when the drilling program was established for this year

[Golden7777]

This is absolutely brutal.  I feel a bit mislead over the past couple years.  I've made far more money with other investments and buyouts and I'll just stop commenting here and keep my position as it stands.  Not another penny will be invested until we stop getting the run around from ownership.

[Mattheu11]

Really just believe part of the process. Any buyer will look at this as diligence done to expedite and further justify their purchase. Truly think this comes to a positive end result sooner than later.

[StevenHunter]

I agree. Keep in mind in terms of the immediacy of scaling up a drill program around newly acquired property.... there's a process to execute before just plunking drill holes down into rocks. Sampling, water study, assays, magnetic survey, LIDAR......   on and on.   Laurion has always been very proud that when it drills it finds minerals EVERY time.   That's not by

[matlas]

I was hibernating in my cave and someone woke me up to read the latest posts. Between a disturbing conversation I had with Roger the other day and reading these revelations, I believe that both LME and Roger have zero credibility.  We have been seriously misled and Steve is a paid BS artist. Although I believe that this will probably still all work out in the end, I have decided to hedge

[newbie8484]

Matlas, would you be able to comment a bit more on your conversation with Roger?  I have always felt a bit uneasy with trusting him....

[matlas]

He called me because he saw my posts about the fact that I didnt buy the rationale for issuing the PP and gave me all sorts of explanations which I thought were total BS.

[Golden7777]

Now I'm starting to feel like I've been hustled.  His comments were as misleading as last years classic from Cynthia of Optimal Shareholder Value.  All I've seen is a few rounds of dilution and crashing SP.  With previous BO's with rumours you don't see a price crash.  You have my money and now I have to wait it out.....thanks 

[littledude28]

can you tell us more about this conversation you had with Roger?

[Smitty64]

Roger has basically done the opposite of insider trading; he’s done insider false advertising and led us astray. He’s repeatedly said there will 100% not be an MRE and he says things like BIG BIG news is on the way. What a joke. There should be some type of penalty for this. Now (according to Steve), we need to drill another 20,000 – 30,000m when all we drilled this year is 5,000m? What is that

[Golden7777]

Spot on Smitty.  The bullshit from Roger was completely misleading but sadly not illegal.  I would love that trash to publicly back up why he said what he did.  

[Sheerms]

Im just trying to understand. What exactly, specifically, did Roger misrepresent?    Is reading far more into what was actually said, really him misleading? "big" and "advancing" are subjective to what they imply.    Is interpreting every development in the very best, most positive way possible and pointing to imminent BO, really misleading? (well it

[Thebluestroy]

SO disappointing lol tbh this will end up being another 5 years of PP dilution, more hopeful pump and dumps on "rumors". Id be voting for Cynthia to be ousted personally. After reading this, and seeing how litle was done from a drilling perspective this year its not positive at all.....and you can see the SP is going to bottom out in a hurry here now....I bet we see .20s after the AGM

[fatlas]

My take?  They can't and won't tell us about any deal(s) in the works. The comment was made that LME - OR AN ACQUIROR - needs to do x, y and z to get to the next stage. Add on a capital raise that COULD be used to fund that should a deal not come together - and the assumption is made that there's no deal.  I think people are drawing conclusions that shouldn't be drawn.&

[Mattheu11]

Agree completely. The fact is that any deal could be announced in short order. This is not last year... mutually beneficial on both ends. 

[keen2know]

To summarise; buyout is nowhere near. It surprises and worries me that you're seeing this positively?  The timing of this is calculated. I assume the hope is that by not announcing this at the AGM they would expect less of a fallout from disappointed investors in one go by taking a large proportion of it on here I also go back to my theory that you were brought in to keep things in

[Golden7777]

I'm now with you on this.  Completely blindsided by this.  

[Thebluestroy]

resignation makes more and more sense every day, dude wanted to keep his integrity in tact and sail off into the sunset before they changed the game 

[Golden7777]

For sure!  Everything is starting to fit now.  Maybe Cynthia should also resign.  Too bad it won't happen due to the amount owned by F&F.  Also be lovely if Roger could be held accountable for his comments.....wishful thinking 

[Thebluestroy]

Apparently there has already been one hostile takeover attempt by the F&F group, I smell another coming. 

[Cntrl8]

I would think F&F must be livid at this point.  Was this all a charade?  Was the "pump and dump" talk hold more truth? Will this stock tank to record lows after AGM? Where is Matlas? Where is Dam$, WHERE IS JA? :)

[Golden7777]

Matlas has already commented and expressed his frustration 

[matlas]

Guys-let's not go overboard here. Remember, as I said, I am still holding 3 million shares for now. I think the the value is definitelt there and there will be a big payoff. However, it may not be that soon, and I am upset about all the bullshit and false signals,

[Lambosntendies]

Might be best for us to all go hibernate and come back next week for the agm once we've all cooled down! Maybe, like the speculation that happened during the afternoon of the uscg pr, this will all be a bad dream." As someone put it.   It's been said the buyout will be announced when we least expect it. I think alot of people are in the place right now. Who knows maybe it will

[matlas]

Wise words Lambo, but it may get crowded in the cave! The thing is, once trust is lost, it is hard to gain it back, and having a paid BS artist like Steve on the job does not instill confidence..

[JoelMarcelo]

He works for LME. He's in their payroll. He gets paid to say all of these. Its very disappointed to hear from someone that this board "trust". Someone who we all look for answers to think that this is all good news. Stop posting things unless it'lll get all of us excited. Steve credibility continue to dwindle..

[Golden7777]

Bingo!

[Golden7777]

Optimal Shareholder Value once again lol

[TraderRC]

Hi Steve, Thanks for sharing, not the post I was hoping to read when  I saw the title, in any case a few questions come to mind. You state "In fact, any transaction will most likely not proceed without one." -if this is correct, how long of a process is it to get one completed?  We have heard about the data room and all the info is there, what is required to put it

[Timeandmoney]

Mr. Hunter, Thanks for this explanation, it makes good sense at first glance and I expect that myself and others will try and validate the points you've made in the days ahead. At the risk of over simplifying your message, it seems like you are suggesting that there is an industry standard of drilling distances that apply to the size of a property in order for a MRE to be viewed as a

[StevenHunter]

I think that's fair for the most part Timeandmoney More work to be done to the benefit of whoever/whatever owns the company at the time that work is being completed.    

[Twiggie]

Is it possible for someone to acquire LME who has more money and access to drills? Cause it appears cynthia does not have these funds. Or does there need to be an MRE before BO