RE: Effect of Aida Claim Cinco, you raise a good point about Aida. It needs to be done before the project is sold. None of us know what the real facts are about the state of negotiations today. I think it is pretty safe to say that whoever holds that block will only benefit from the sale of the Cordero discovery, so it is highly likely that some kind of deal will get done eventually.
What is really going to be necessary to move the stock and to move the eventual buyout are the following:
1. A second discovery hole with a separate 43-101 resource showing results comparable to or better than the first 43-101 on the first discovery hole.
2. Some better gold grades and an indication that that the indicated gold reserves are going to be interesting to the majors.
3. We need to see a combination of indicated silver in excess of a billion ounces total.
4. We need to see that there are good indications in some of the remaining intrusive zones that we have the possibility of a greater find than what is indicated between the first 2 NI 43-101's.
What has made Cordero interesting to all of us is the comparison to Penasquito. The more we can look like that discovery, the higher the probability that we will get a successful buyout.
The current price performance is a disappointment to all of us who have been in here for awhile. On the other hand, the company has made significant progress towards the completion of its business plan and is well funded to keep it going for awhile. If this were mid 2010 when the price was similar to what it is today, and knowing what we know now, we would all have been motivated to buy in, not to sell out. Todays confusing markets and the growing concerns all over the EU and the USA about the fiscal failure of governments, the growing unsustainable debt burdons and the questionable nature of the Euro, the Pound, the Yen and the US$ as reliable fit currencies has everyone on edge. Things that we have always taken for granted in our lives have become unsustainable and are clearly headed for significant and somewhat unpredictable change.
The junior miners have a history of volatility, with sharp drops and big recoveries. The GDXJ is indicating that our current pricing problems at Levon are more of an industry based phenomena than one directly related to the company itself. If you are a junior miner investor, you are looking to add to positions in your favorite companies where the fundamentals are undervalued by the market. These are balance sheet plays and are difficult for the average investor to evaluate since there is no EPS or Dividend payment to compare to price. The average investor has one heck of a time trying to evaluate the geological reports and the 43-101 reports and place an underlying price on the stock. Reasonable people may disagree, but a range from $2.50 to $5.00 of underlying value per share based on the PEA which is based on the June 2011 43-101 is not unreasonable for LVN.
Never the less, it is still frustrating....