RE: The 2010 Drilling Program Update!Today's press release is interesting in a number of ways.
Its interesting to compare this release to the first release of Langmuir drilling results - that was back five years and two months ago. At that time it was referred to as the Langmuir Project on a property containing both the Langmuir No. 1 and Langmuir No. 2 past producing nickel mines. And it was stated that "The Langmuir property is an advanced exploration property. There is an aggregate inferred resource of 1,017,400 tonnes grading 1.38% Ni...."
I think there may have been a correction stating that one of the mines was not on ISM property, even back then ISM sometimes made announcements that had to be revised. In today's release the Langmuir property is identified as the Langmuir Open Pit Deposit, and reference is made to a resource estimate with grades of 0.51% Ni.
The 2005 Press Release was the first of a series of releases that were issued regularly - the next set of results was released within 2 weeks. The 2010 release is the first news of drilling activity all year. 2005 was back before ISM had raised the big Dundee placement for exploration, yet it reported more drilling results in two weeks then, than it has accomplished in ten months this year.
Mr. Miller says "We continue to be encouraged by "the significant progress being in the field in identifying meaningful additional tonnage....." I might question that the additional tonnage is that meaningful. The previous identified resource was at .51%, and was not indicated as being economically viable to extract. None of the cores indicated today were as high as .51%, not even the higher grade short segments - in fact on average they were under one quarter of 1%. It should also be remembered that Micon hinted at a requirement of an onsite mill to handle this low a grade deposit - if it proved economically viable. I'd say that Mr. Miller and Co. are easily encouraged. The market might recognize these results as less of the same.
Another of Mr. Miller's comments warrants mention. He states " (we).. look forward to providing an updated 43-101 by Q1 2011." This might appear to be a promising bit of news, to those not familiar with prior "looking forwards" of Mr. Miller. Back in 2008 he had followers believing everyone was looking to a multi phase 43-101 report in 2008. In January 2010, they finally got the intensely disappointing Micon Report - and found out Micon had not been provided with sufficient information to give an opinion on economic viability. So before anyone gets as excited as the Royal "we's" of Mr. Miller, remember that his looking forward and actual dates can differ by a year or more - and there's no assurance that the report will provide the economic assessment that is required to meaningfully assess the potential of the Langmuir property, and the performance of those that have managed this advanced exploration property for the past five years.
Based on the January Micon Report and today's release on drilling results, my assessment is that the Langmuir Project, aka the Langmuir Open Pit Deposit, has been a costly failure. If the technical information isn't enough to justify this assessment, the lack of guidance on a co-ordinated business plan is. Exploration and development of Langmuir does not appear to be the priority it once was. The company seems to be setting off in a number of confusing directions, from spin-outs, to generous parachute agreements, to loans to unnamed companies, to investing in penny stock companies, to suggesting change in leadership in those companies. And ten months after Micon suggests that more drilling be done, and an economic assessment be completed on their flag ship five year old "advanced exploration property", we get results on four holes covering 364m of drilling with dismal grades - and no assurance that an economic assessment is planned. Five years ago, when money was not so readily available, ISM started drilling and in two months reported on ten holes covering 390m of drilling with grades averaging much higher than today's. There's a saying - follow the money. Very little of the money is being put into Langmuir.
I doubt that today's news release will have much effect on the market. After the Micon Report, and the company's reaction to that report, most followers (even amateurs) expect very little from Langmuir - and that's exactly what they got today.