American Bonanza Gold Corp ABGFF

To reply to someone...

[bizwiz]

I guess my previous posting was deleted.(to reply to tree 73)

To resume...

Obviously you imply that some people were accumulating before the cease trading order which occured because the company announced that it was out of funds and in the incapacity to find a suitor to assure the continuation of operations with due consideration for the other shareholders in the sense that corporate management didn't want to sell a major participation for chicken feed ! I for one was surprised that they'd end up in so much trouble considering what the past indicated notwithstanding what a participation on the Toronto exchange implies in terms of credibility for an upstart, the regulating authority looking deeply into the matter to avoid looking like dumb idiots that do stupid mistakes of the like you'd expect putting worthless penny stocks that aren't worth anything on the big market !...(and which are typically on a ventures exchange...) In other words , graduating to Torionto impleuis alot in terms of credibility...

With regaqds to such a fact, you tend to trust management as a result and expect them to take the right decisions such as in regards to the stockpile of ore which must include high grade ore to prepare for a rainy day or at least to take into account the additional costs there are once starting up...That's what I couldn't grasp about them... Why didn't they do the obvious mostly once considering the extra costs associated with start-up ? 

Furthermore, despite the understanding that this was a promising venture, the stock value languished so much that it looked like a laughing matter typical of equity that doesn't have anything tangible to show for despite what we were lead to believe reading the relevent material which must have been sufficiently detailed to convince the regulators on the Toronto stock market to list their stock !

Once dwelling on such penny stocks you tend to choose those which have been officially sanctioned thus giving you sufficient peace of mind to rest assured. In this instance I just thought that after construction of the necessairy means of access, they'd take enriched ore and put in on the stockpile thus assuring their solvency once considering the difficult moments at start-up...In that regard once dwelling on the business I have on occasion wondered if , once encountering high grade ore, they actually give a good indication of the contents. To give an example, I had once fallen on an exploration company which had encountered 40oz grades where they were exploring. Now once considering such bonanza grades , it only takes a paltry 25,000 tons to get a million ouncer which takes a week to extract as opposed to years.... The costs of extraction and processing of such enriched ore are so nominal that it's not worth mentioning ...

Obviously it isn't the same story here but an enriched stockpile would have resolved the problems they had staying afloat which at the current price for gold just makes you wonder what was going on in their heads even oif poorer ore seemed just as fine . At least it would have resolved the difficulties they had getting a better value for their equity which would have facilitated financing ...