Icon Energy Ltd V.ICN

RE: RE: Cores to come "early next week"

[SevenFigures]

Kid, thanks for the comment.


I had to run out earlier, so there was more food for thought I wanted to put out there (when looking at the twigs,leaves, and trees, it's healthy to get opinions on those or on the forest)


When trying to decipher the ICN, besides the geology, etc, it's very important to understand the following:
- the Lode Star deal
- their neighbor IMZ
- the Warrants & Options situation


Lode-Star deal


ICN signed an option with Lode Star on 12-16-10 (stock spiked on the news)
Highlights:
- Upon TSX approval (4-13-11 news release), Lode Star got $50,000 cash, and 500,000 units. Each unit is 500,000 shares and 500,000 warrants. Shares and warrants were priced at
.44 CAD, and these warrants must be exercised by 4-13-13.
- 1st year work commitment of $1,000,000, plus
"To earn their 80% interest in the Property, ICN would be required to pay to Lode-Star a total of US$3 million in cash, issue 3 million units and complete US$5 million of exploration work over a 4 year option period. If ICN completes all requirements of the Option to earn 80%, a standard mining joint venture would be formed." and "Lonnie Humphries, owner and President of Lode-Star Gold, stated that, "Lode-Star Gold has reviewed numerous possible venture opportunities over the years, and we believe that we have found the right partner in ICN Resources"


Lode Star will therefore end up getting $3,050,000 cash, plus 3,500,000 shares and 3,500,000 warrants (Unclear to me if it is 3,000,000 units total including the 500,000, or 3,500,000 total; we'll be conservative). 7,000,000 shares, all else being equal will be about 7/55th of the company, or about 12%. (It is unclear to me if the additional 3,000,000 warrants within the units would be also at 0.44 CAD, but I believe not).


To clarify the previous post, I should have reduced the potential low end of the Bonanza target of 300,000 oz by 20% due to the option deal. However, I believe the minimum valuation just for Bonanza of $2/share still more than hangs together due to the Management of ICN not being worth
...


IMZ


International Minerals (IMZ) is a "Silver Producer with a Golden Future"... $850,000,000 market cap, based in Scottsdale with Silver properties in Peru & Ecuador, as well as properties in Goldfield and Converse NV
https://www.intlminerals.com
- Slides 14,15 and 16 here concern Goldfield:
https://www.intlminerals.com/Pdf/IMZ-Zurich-April%202011-Final.pdf
- They bought out Metallic Ventures beginning 10-29-09, closing the deal on 2-26-10
- Paid $60,000,000 cash and stock, got Goldfield, Comverse, and a 3% NSR for Ruby Hill
- Must read drill results were released 8-25-10, 10-7-10, 12-6-10, 2-1-11 (upped Goldfield Main to 421,000 Ind avg 1.5 g/t, 360,000 Inf avg 1.7 g/t, also "IMZ is confident that its ongoing drilling program, in areas to the east not previously drilled, will further increase the mineral resources at Goldfield Main."), and the latest on 6-16-11.

- Interesting blurb from 5-20-10 News Release: "Between 1903 and 1960, the Goldfield district reportedly produced approximately 4.2 million ounces of gold and 1.4 million ounces of silver contained in 4.2 Mt. This equates to an average grade of approximately 0.90 ounces per short ton (“oz/t”) or 31 g/t. Over 98% of the past production in the district was sourced from a mineralized belt less than 1.6km in length and a few tens of meters wide. Gold grades mined in the main district were, in certain cases, spectacular. Reported examples include:
- A sample of oxidized ore from the main ore zone in the Red Top Mine assayed 605.oz/t (20,742 g/t) gold.
- Ore produced from the Great Stope of the Mohawk Mine averaged 19.4 oz/t (665 g/t) gold
- The first shipments from the Combination Mine in November 1903 averaged 7.7 oz/t (264 g/t) gold, which was recorded to be the lowest grade ore shipped from that mine."


Since IMZ wants a feasibility study by end Q2 2012, and to go into production Q1 2015, it would seem to make good business sense to have a keen interest in the going's on over the fence immediately to the west (and if you look at the map on the ICN website, ICN owns the property below 380 feet in the orange rectangle box - presumably above this is owned by IMZ)...


continued on next post