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RED EAGLE EXPLORATION LIMITED V.XR

"Red Eagle Exploration Ltd is engaged in the exploration, development and permitting of mineral properties. It owns the California Gold, Vetas Gold and Santa Ana Silver projects."


TSXV:XR - Post by User

Post by clarkk3nton Nov 10, 2011 11:42am
488 Views
Post# 19226420

recent events

recent eventsOver the last few weeks the chatter on this board has increased exponentially. Some of it has been very useful and informative ... and some of it not. While no company likes having to restate/re-release any information some people seem to be forgetting that the initial press release very clearly stated the high grade intercept was included in the overall average. All the information that was "clarified" in the latest release was clearly documented in the press release outlining the last drill results. The only new information included top grade cutoffs and the characteristics of the drill hole (degree etc.).Of course removing the highest grade intercept from the average will mute the results. Again, this information was clearly available to anyone who actually read the original press release. Anyone who read the results from Oct 24th and could not see that a significant portion of average result came from a 2m intercept should not be investing in public companies. People can debate the appropriateness of including/excluding high grade intercepts in drill result averages, but that does not change the fact that the intercepted gold (at over 300g/t) was found in the ground 31m below the surface.Regarding insider selling. I have watched cbj and all insider transactions since it went public last year. Insiders have acquired well over 1M shares between going public and the release of drill results on October 24th. Since that date there has been approximately 25M shares traded, of which approximately 300k shares (1.2%) were sold by insiders (2 sales of 70k and 1 of 150k). Insiders also hold somewhere between 25 and 45 million shares. The insider sales are insignificant when compared against total insider holdings and total volume of shares traded.The positives for having Lumina invest in CB have been stated many times over the past week, no need to repeat them. At the end of the day Lumina has their own team of analysts,geologists,bankers, etc who have poured over all publicly available CB information ... and most likely a significant amount of non-public info too as they are now insiders. They would not put $11M blindly into any company.I agree that there is a lot of money to be made trading in/out of this stock, if you have the time to watch it. Good luck to all taking this approach.While nothing is ever certain, especially with junior mining companies, in my opinion there are significantly more positives than negatives for the long term success of CB.
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