RE: RE: TRYING TO BE POSITIVE digger9694 - Always happy to have visitors down here...
I believe Management have begun execution on a plan and that it is going to result in at least the bulk sample and then an updated 43-101. I believe there is gold in the ground and at least 2MM oz. Mercator is currently updating the geological model to determine best locations for bulk sample. The NS Gov't requested the PEA as they aren't willing to support the bulk sample without the expectation that this thing actually has a chance of becoming a mine. The PEA requires the updated 43-101, which management tells me will have to incorporated all the new results from the 2010/2011 campaigns and I assume the 2012 bulk sample. Management have been in touch with a company to do the bulk sample and they will have resources available.
I reviewed the most recent financial statments posted on SEDAR (Feb 28/12). Just want to point out a few things...
The company still has $2.1MM in the bank, and is very solvent. Despite all the claims of being milked dry by management, at the current run rate of $300k/year the company could exist for 3.5 years before running out of money. At the same time, definitely not happy with the value being returned for money spent.
In December 31, 2011 there were 34 million warrants outstanding. On Feb 25, 2012 11.7 Million of warrants expired unexercised. On October 23, 2012 21,967,500 remaining warrants will expire, and On Nov 11th, 2012 650,000 expire. With 164MM outstanding shares, its in our best interest to see all those warrants expire otherwise any stock price appreciation will get watered down as soon as those warrants (average strike of
.10) come into the money. The warrants are held by people with no real love to hold onto the stock (Except maybe Scud and his partner who really do own shares and hold warrants). If the stock price is above their exercise prices of
.125 they will buy and dump into the open market... so why rush.
The company's new by-laws are now posted (in French only) and make for interesting reading.
As for the pilot mill, I imagine they can pay to use APP's over at Dufferin or they can bag it and ship it somewhere in Val D'Or that can handle the slightly different process flow sheet that they've used for all the core samples to date.
My prediction is a slow news season through the summer until October 23rd. The company will get its Bulk Sample permit, the sample will get started over the summer... and positive results will show up after the warrants expire and just in time for the 2012 AGM. But I don't expect they'll do any promotion or undertake anything that will risk moving the share price above
.125 and diluting themselves. After November 11, 2012 and assuming good results from the bulk sample, they will move this thing.