RE:RE:RE:RE:Back into silence I go....cucaracha wrote:
so..should we assume that there ain't any positive ''relevant information'' and that's why the stock is sitting at the year's low ?
You should draw your own conclusion here Cucaracha... I will give you y opinion and not "what you want to hear" as Frankie sugessted.
We are sitting at year lows for many reasons, lack of updates due to the need to update us but mostly, IMHO, due to frustration. There is no fundamental news to keep us down (or up) and with no constant updates from Glenn, we have no speculation to move us up or down either. So the only thing left is the fact that Glenn has not given us business updates to keep and hold us above water and so we slowly sink to these levels and then got further driven over the last week over the frustration of not having the NR that we got being some positive news, or at least the news we wanted.
Again, IMHO, it isnt a mater of getting no "relevant information". We have to main sites within the Condor belt. We have "El Hito" which holds out largest source of Cu, including what they are calling "El Hito North" which is the double strike length in the NR last November-ish. We also have "Santa Barbara" which is out highest volume, low grade, gold Au deposit that we are awaiting the PEA on. So, if the PEA is bad here, which I highly doubt IHMO, EGX would have nothing but garbage gold in the ground with only .8 million lbs of Cu and 1.1 inferred. Its a lot of Cu but not nearly what there is in Ecuador with such sites like FDN. Also, if the PEA is negative and we had garbage gold, IMHO, Deller would not put another $1,000,000 into EGX. We would have seen him sell and possibly Glenn along with him. This is all IMHO as I for one would not invest this kind of money into a company with no resources. This is merely my take on the situation and Deller knows a lot more about investing in companies than I do. As far as the delay goes.....
I do think Glenn has delayed releasing it in hopes of Gold rising back to the levels where the PEA was complete. We do not want to have happen what happened with INV and have the PEA based on hundreds of dollars more than where gold sits. I have done a lot of research on leech mining in various parts of South America and it is a very profitable form of mining in the right conditions. Due to cheap labour, fuel, taxes etc... I have seen all in costs of anywhere from $400-$800/Oz. IMHO, because EGX has such a high volume of gold, even the slightest savings/Oz resouce recovery adds such a large amount of value. For Example... if we had $10,000,000,000 in Au with a recovery AISC of $800/Oz (using $1000/oz) we see a $2,000,000,000 profit. Using $700/Oz we see $3,000,000,000 profit. So due to the mere volume that EGX has, if we can get on the low end of the all in cash cost of recovery in the $500-$600/Oz range, we see huge gains here. EGX has one of the very few MASSIVE gold deposits and even with a higher end revocery, where most mines would not be profitable, EGX would be. Even if it is not sold for $500,000,000, as it should be, $250,000,000 is reasonable on a poor PEA. I use the word "poor" as less than what I expect but still making EGX profitable.
Not many companies have guys like Deller dumping money into them like we do. While I am "Pro Deller", it is a blessing and a curse at the same time. It is a blessing becuase we are being fastracked into getting things done in Ecuador and getting MET, PEA and Exploration paid for immediately. Dilution is going to happen no matter how you look at it. We dont raise money but we still have to pay the bills. As for the downside, Glenn is not doing the updates that most CEO's to keep interest in their companies. CEO's dont update to keep the shareholders informed, they do it to keep the money rolling in. Glenn has money and therefor does not need to keep us in the loop. See, blessing and a curse. It really isnt lack of communication it lack of need for cash. Glenn apparently isnt worried about losing Deller as a backer. If we did, we would be royally screwed. After the way Glenn has not promoted EGX in the past, no one would give him money.
I expect we will get news Monday on either the PEA, drilling to move Cu into the inferred catagory or both. I do hope we get something rolling soon as land is being auctioned off soon and the Ecuadorian vultures are going to start drilling and proving up resources on their own. If these "busniessmen" in Ecuador start drilling and get resources like us, any "lowball" offer, in Ecuador, is a significatly larger amount by comparison to the countires. Now, It could take years before this happens but if we start getting competition down there, we might not get the money we want and deserve. We are by far, ahead of everyone else in Ecuador. Beaty doesnt expect to have all resources proven up for ODIN for another 2 years... Lundin is going to mine himself, I expect, as well as Mirador. I think we are the next on the list of proven resources and should be bought up soon IMHO. I think gold, over the next month, will take a turn upward. There is a lot of limelight shed on gold right now on a world scale and interest has definatly been generated. We could see gains just into next week leading up to the 20th and continuing.
Continue to do your own DD, take my posts with a grain of salt and dont let the vultures and bashers despair.
See you all in the winners circle!! GLTA