Explor Resources Inc New EXSFF

RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Where We Are on TPW and Ogden

[PhillyJack]

Wolfin, thanks for pointing out the actual timing on the decision by CD to drill at Ogden.  We have been hearing that drilling at Kidd Creek was close, EXS was just waiting for the permits, etc.  Then, right after PDAC, we suddenly get a NR that EXS was immediately commencing drilling at Ogden.  So the impression was naturally there that the decision to jump Ogden ahead of KC was made suddenly, and that it was made coming out of PDAC.  Based on your info, that was apparently not the case.

Also, your point is well taken that Goldcorp should not be discounted as a potential buyer of Ogden.  And, that Goldcorp could even have its eye on the 30% of TPW still owned by EXS. However, I doubt that Goldcorp would take down the minority position at TPW only to then "squeeze in" Teck which lacks infrastructure in the Timmins West area.  To do so would be to work against their own investment in TPW.  Taking out Ogden 100% seems the more likely route for Goldcorp if they do make a move on any of E.XS's properties.

I do have a tough question for you.  You say that CD's plan is to drill at Ogden and not do a JV.  EXS will drill until the property is ready to be auctioned to the highest bidder.  At TPW, CD drilled over 100 holes and spent $25 million (more than EXS' current market cap) and then agreed to option 70% of the property to Teck in exchange for the promise of $12 million in additional drilling and exploration.  EXS now has about $1.5 million in the treasury after the recent financing.  My question is, what has changed in the 15-16 months since CD did the JV deal with Teck that CD and his people now believe that EXS can handle Ogden alone and advance the property to the point it is ready to be auctioned to the highest bidder . . . all without a JV partner with deep pockets?  Somehow I don't see EXS drilling another 100+ holes at Ogden.  How quickly and inexpensively do you think EXS can advance Ogden so that a major will step up and buy it?  In your opinion is Timmins West really that hot now that EXS could hope to pull off Ogden on its own?

Obviously, a buyout of TPW would help to make a go-it-alone effort at Ogden all the more feasible.

The JV deal with Teck is what brought me back to this story, and in my mind gave EXS a second life.  I would be happy with a second JV deal on Ogden . . . it would be the safest way to go.  But if EXS can show where developing Ogden as a 100% EXS-owned copmany property makes the most sense and can be sensibly financed, as I wrote earlier I'm all in.  Thanks in advance for your reply.