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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 Lunchisforwimpson Apr 02, 2014 7:33pm
291 Views
Post# 22403076

Galway Gold and CBJ

Galway Gold and CBJGalway Gold has 500 k indicated and inferred at Vetas. CBJ has similar numbers at 400 k right beside. Combined both companies will generalize they think the two combined could have up to 2 million oz with more drilling (1 million oz each). A business combination seems to make sense although CBJ must cleared on the paramo (seems so but needs confirmation). Galway needs to deal with its landowners in arbitration.  It would really depend on valuation as each would argue they have the more valuable property. 

Not making excuses but epithermal veins are notoriously difficult to 43-101.  Many small offshore producers don't bother measuring epithet all 43-101 for that reason. CBJ has not done that much drilling hence the low number. Previous posts of 1.5 million oz were not realistic.  It is a fair statement to ask what happened to all the money put into CBJ (g and a?). Beatty cannot be happy.  I note they are currently burning 200 k a month. Down from before but far from care and maintenance.

It does appear the high grade gold is there to be drilled up for both companies. Crappy junior gold market, Columbian waffling and spending mismanagement have not helped. 

They advised at Pdac they have money until spring 2015 or thereabouts but would hope to raise money at higher prices to start year end drilling. It now appears that will be dictated by the market (an unsettled market with a falling gold price sans today). The fellow at the booth was a realist and shot straight.

The all day halt is perplexing and disconcerting.  Perhaps the exchange is grinding them on the 43-101 numbers. They do that....
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