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RESERVOIR MINERALS INC V.RMC

"Reservoir Minerals Inc is engaged in the acquisition, exploration and development of mineral properties in Serbia, Cameroon, Gabon, Macedonia and Romania."


TSXV:RMC - Post by User

Post by rodneycon Oct 15, 2014 7:31am
249 Views
Post# 23028696

Potential explanation for the falling stock price….

Potential explanation for the falling stock price….Recently I asked RMC what might be going wrong as I just returned from a very positive Investor Tour experience, which is contrary to sp direction. The response I got is interesting – read below. This came out from a News Letter yesterday: “On the back of the analyst site visit to Timok came a raft of reports and analyst notes on RMC from the usual suspect brokerages. I think I’ve read them all and they all run roughly the same message of, “Good Stock, beaten up recently, we like, buy, it’ll go back up”. So why didn’t it? From what I’ve picked up on the underground wavelengths, what analysts saw but didn’t mention in their pump pieces is that RMC may have ground issues at its FCX JV, with the type of rock that won’t be able to support an underground or block cave operation. This is one for the engineers to work out and there may be a solution, but more than one person mentioned it off-record. Beats me why the analyst calling buy on the stoy invited there didn’t write up the potential..not.” Our view: We really do not know where this view on the caving has come from. RMC’s view is that the andesite and porphyry is competent and would be amenable to block caving. We have actually spent quite a bit of time looking at this internally with our consultants, one of which was previously Technical head of underground mining at Rio Tinto, Frank Russell. Rio are one of the few companies who have built multiple block cave operations and are in a form of JV with Freeport , they earn 40% of Grasberg in 2021. Details of our team are on the web page including details about Frank. https://www.reservoirminerals.com/Corporate/Exploration-Team/default.aspx Frank was able to give Reservoir immense insight as to what is needed for a block cave and factors impact the viability of the cave. Frank was very positive on the ability to block cave in the andesites and at the depth of about 1km and below. We have completed a fair bit of geotechnical logging also with our consultants to get a better feeling of what the ground conditions will be like. From a corporate perspective we wanted to get an initial feeling as to the viability of a block cave, we did not want to talk about the potential unless we really believed it would be possible. We are happy internally that the block cave is a real option for us and that is why we keep talking about it. A block cave mass mining opportunity is what interests Freeport and I am sure they would not still be in the project unless they had a similar view. No surprise that the negotiations over the JV Shareholders agreement have taken so long, the prize is big.
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