Silk Energy Ltd SLKEF

RE: Driller.............

[Vanchester]

Just a couple of points Whaler. None of the ISM properties are shovel ready as Drillbit likes to claim. What is missing is a resource estimate, reserve estimate, prefeasibility study, feasibility study,bulk sampling test, first nations agreement, environmental assessments, permit for taking water, permit for sewage works, trucking permits, a closure plan, public consultation on all permits, advanced underground exploration permit, and patented claims. No major is even going to sniff until all of these things are in place. Sorry but thats just how it is as the big boys let the little guy run around until everything is in place. Then they go hunting. After all, if you are going to sell something you have to "gussy" it up to get your best price. ISM is at least 2 years from getting all of the above in place so there is no big rush from the majors yet. Do you really think they would go out on a limb and buy ISM when they don't even know if it's economical? Give your head a shake! Given the current economic situation, majors are shutting down known reserves just because they are not economical so why would they chase an unknown? This run up is purely specuative on the release of the resource estimate period. That's only the first hurdle to getting ISM to shovel ready status. Stude is playing it right in that there is lots of money to be made on ISM between now and shovel ready status as there will be lots of ups and down if all goes well with each hurdle. You only make money when you sell.

BTW there are no more fat cat "domestics" out there anymore. Our domestic resource sector companies are quickly disappearing into foreign control and it sure isn't the Americans.


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