OKFirst impressions.
Some of the people on this board were there as indicated by the open forum questions. I'm sure they will have something to say after they get over their hangover from the supper and big party tonight for all CAN investors. Free cabs to get home as well.
Sporting my new Canaco blue golf shirt donated by one of the shareholders that made a killing.
It was bit of a love-in. Everyone was all giddy about the 12 month rise from .36c to $5.50
Basic business was conducted after the Chairman expressed his gratitude and introduced the team. Then Andrew got up and covered what was and what is till to come.
First they are very confident this is a very large gold system. In many ways like Geita, higher mineralization if not the vastness of their low grade ore. So Geita's 29m ounces was the target. They were not saying they have it but they plan to prove if it is or isn't in the next 12 months if Andrew gets his way.
Apparently there will news in a few weeks about there consolidating position in the region. they were not forthcoming exactly what that meant it will likely come out over cocktails tonight.
As per there agreements CAN has consolidated their territory from 197sq.k. to 100 sq.k. Giving up the areas they either can't get to or are perhaps low priority. On the other hand they will be announcing new property initiatives in the next month so that could be interesting. ( maybe connected to their consolidation position)
They have hit ore of 1gpt or greater in 88% of the holes drilled. Combined with the very high grade hits it has inspired Andrew to take a very aggressive position on determining what is there. 96 holes drilled to date and he says they need 400 to totally delineate the 100s.k property. What's the rush you ask? Well one gentleman tossed out the poison pill grenade. This of course sparked the conversation of what type, we don't want to discourage PEOPLE FROM POSSIBLY BIDDING UP THE PROPERTY, among other delicate issues surrounding poison pills.
They went on about the fact they have only drilled up the obvious. Giving credit for local miners finding many of the drill sights their experience is that the highest gold trends tend to be where you don't necessarily expect them. they cited the example of Geita where the last drill hole they did in the least most suspected area gave them half their ore body.
Shut down drilling from Dec22-Jan 5th but the teams will be busy making preparation for the additional drills arriving in January , complete the building their new camp and general housekeeping.
They don't see the need for additional financing however they did say they are scheduled to go into production in 2015 ( which incidentally changes the share price math upward) and the conversation afterward was about a $8.00 p.p. among the analysts there.
TSX they have submitted their paperwork and are waiting to see if the TSK wants them at this time.
The spin-out is not something that seems close to happening. Comments like we are considering and looking at that tells me it is not anytime soon. Andrew did say that the property showed VERY HIGH promise and that a specific team trained to deal with the geo-political situation there would need to be established. A question came to my mind afterward. CAN basically bought the Ethiopian property with shaers of about .50c Would that still be the price or would it be paid at todays share price. If so , very expensive and maybe better to go big there as a separate project.
Of the 20mil they had cash 1/1/2011 will start out with $17mil This would carry them to the end of June. Hence the huge incentive to perhaps double the reserve by then or at least find out one way otr the other.
They are doing local needs as well. One gentleman from Tanzania got up and explained about the fresh water wells, 2 class rooms, sports and education contributions, Malaria nets and hospital donations and a trust for reforestation and very importantly the education of women in the region.
So the general feeling is they are sitting on a big footprint and they are going to drill the hell out of it in the next 6 months to prove they have another Geita. Buyers will be dialed in on the next hit as it is much cheaper to buy 10m ones at $200 an ounce then 20-30. Things could happen quickly. If not they will just open up a mega mine and be done with it.
I'm looking froward to the others perspective especially if they were able to attend the supper tonight and get some unfiltered comments. They were taking group pictures and doing a lot of grinning. Of course 80% of the people in the room are now millionaires. EOM JMO
P.S. no time to spell check got to get out of here.