RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:*** RCG DAMIAN PREACHING HOPE*** It is going to be challenging for the group from the Reliance to prove that things were predetermined to fail.
therager and others made a good case that Dufferin's gold was underdefined at least in comparison to other projects.
RCG itself said that was ... not basing its Dufferin production decision on a feasibility study of mineral reserves demonstrating economic and technical viability (1)
The Annual and Interim Reports are full of similar language to (1).
Reliance shareholders were underwater after the Indonesian property write-off. The company might have been able to make their money back with Dufferin had succeeded in going into production and unlocking the tax credits. RCG never raised enough cash to make a go of Dufferin.
The group will have a hard time demonstrating that management did or did not act in their best interests. Examples Why did George Young switch to a credit facility secured by the properties ?
Why did the company bring in Greg Gibson, a Sprott Mining executive, to chair a technical commitee ?
The group will have a tough time with market prices. Mr. Market is notoriously fickle.
Notes:
1) The Company is not basing its Dufferin production decision on a feasibility study of mineral reserves demonstrating economic and technical viability; as a result there is increased uncertainty and economic and technical risks of failure associated with its production decision. The PEA on which the Compnay is basing its production decision is preliminary in nature: it includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the preliminary economic assessment will be realized. A PEA is a conceptual study of the potential viability of mineral resources. The economic viability of the inferred mineral resources has not been demonstrated.