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Kootenay Silver Inc. V.KTN

Alternate Symbol(s):  KOOYF

Kootenay Silver Inc. is a Canada-based exploration company engaged in the discovery and development of mineral projects in the Sierra Madre Region of Mexico. It is focused on the expansion of its silver resources, new discoveries, and the near-term economic development of its priority silver projects located in mining districts in Sonora, state and Chihuahua, state, Mexico, respectively. Its projects include La Cigarra Silver Project, La Negra Silver Project, Promontorio Silver Resource, Columba Silver Project, and others. The La Cigarra silver project is located in the state of Chihuahua in the renowned Parral Mining district in north central Mexico. The La Negra silver discovery is situated only 7 kilometers north of the Promontorio Silver Resource within the Promontorio Mineral Belt, in the state of Sonora, Mexico. The Promontorio Silver Resource is situated on the Promontorio Mineral Belt Property that includes the La Negra silver discovery, located in the state of Sonora, Mexico.


TSXV:KTN - Post by User

Bullboard Posts
Comment by production05on Sep 21, 2016 3:31pm
268 Views
Post# 25262226

RE:RE:what is long term objective of cigarra

RE:RE:what is long term objective of cigarraNo one knows the future.  Also, precious metal prices and all the other key factors can always change at anytime in the future.  However, I do not see Kootenay being sold anytime soon.  Today`s $.49 share price is nothing.  I think Kootenay needs to get into the $3.00 - $5.00 range before management even (seriously) considers offers.  I think Kootenay`s management recognizes what they have here.  This is a once in a lifetime situation, with both company assets (namely La Cigarra) and the precious metals environment.  In the 1980 precious metals bull market, companies, with far, far, far less that what Kootenay has right now (nevermind the acquisitions Kootenay will be making), went from a $.40 share price to a $40 share price.  I think this upcoming bull market could exceed the 1980 bull market for junior precious metals companies - and Kootenay is positioned to lead the pack.  The world has never seen what is happening today.  The world`s debt has gone from about $160 trillion in 2008 to about $240 trillion today, with no sustainable progress to show for it.  The bubbles created are kept afloat by zero/negative interest and currency printing.  The central banks have provided the liquidity to keep the bond market liquid and thus prevented interest rate from skyrocketing - as a note, when bond prices fall interest rates rise, as buyers need to be compensated more to take on the lowered bond principal.  They have tried to take some of this away and have been unsuccessful.  They can`t do this forever.  However, I believe the US has more to do (will join Euro Zone, Japan and China again), before they all run out of ammunition.  I believe all the blown up markets will deflate once they take the support away.  The world has never seen this before.  When it breaks...........    

In my opinion, it would be a colossal mistake for management to sell this company before long suffering (existing) shareholders of this company can benefit from this enormous upside.

I think Kootenay will bring La Cigarra to production itself (I think they realize it is a once in a lifetime gem).  La Cigarra will be the flagship producing asset for Kootenay for the next 25 (+++) years (or until Kootenay is sold - for multiples of today`s price).

Kootenay has essentially capped the ownership for all parties - to around 10%.  This means that it harder to any one party to steal Kootenay`s upside away from existing shareholders.  

Anyway, if is comes time to sell the company, many years into the future (after realizing good upside for existing shareholders), in addition to Pan American, Coeur, Endeavour and Agnico-Eagle, we shouldn`t rule out these companies:

* Grupo Mexico
* Minera Frisco
* GoGold

Grupo Mexico and Minera Frisco are the Mexican companies that own the 2 operating mines to the south of La Cigarra.  San Francisco is only 5km away from the southern end of our property and Santa Barbara is right there also.  Both companies know the La Cigarra geology very well.  My guess is that they will begin to watch the results very closely once the theorectical similarities between La Cigarra and San Francisco/Santa Barbara gets proven out through drilling - i.e. depth and mag highs.

Grupo Mexico is one of Mexico`s giant mining companies.  Minera Frisco is the mining division of Carlos Slim`s conglomorate company.  Carlos Slim is the 4th richest person in the world (2016 Forbes listing).  He tends to flip positions with Warren Buffet and Bill Gates from year to year (between the top 3).  Grupo Mexico and Minera Frisco are not small players.

GoGold runs a very profitable tailings operation in Parral and expansion plans at various locations.  They have a market cap of Cdn $158 million.  If they continue to grow then they might take a look at Kootenay in a few years.

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