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Elgin Mining Inc ELGMF



GREY:ELGMF - Post by User

Comment by borepson Nov 16, 2012 1:04pm
291 Views
Post# 20610592

RE: time to sell?

RE: time to sell?

Hello Billy, Just few comment re. your post.

Your concern for economy is understandable and the media adding a lot of fuel to the fire.

My feeling is the the fear mongering reflecting the bottom and although the recovery may take many years, the worst is behind. We should be more concerned when politicians predicting blue skyes like in 2006-2007.

The recession in which is defined as two quarters of falling GDP does not mean much since the GDP is so murky and archaic and do not really reflect the well being of the country. The financial cliff is just the noise, don't pay attention to it as US already saw the restructuring, bank closures, real estate collapse etc.

Now back to our little Elgin. I don't think the GOZ would be better off alone as we see that the resource from open pit is not sustainable hence the underground mine was developed. The methods that GOZ utilised using the contractors and paying them by ton of ore extracted would bring the company to disaster very fast.

That's being fixed and hopefully we will see the results. The negative earnings were the result of recording  exploration expences of over 6 mln. in this quarter. The exploration drilling at Lupin seems strange. The plan was to reopen the mine and continue the drilling from underground. For some reason this was delayed, still the exploration has to be carried on due to last year flow through financing. Personally I do not believe that 12 km of drilling did not bring the results in an advanced project like Lupin. So maybe the money was utilised elsewhere but it's just speculation. We have to trust the management on this or just sell and move on.

Personally I think this project has a lot of potential and we will see it developed.

 

 

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