VENTURI VENTURES INC UROFF

Sell Off

[stitch1956]

In my opinion this sell off is entirely overdone. Crucitas is a serious asset and to some extent we have seen one leg kicked loose on a three legged stool--the other two legs being Potaro and Cristinas. I would be the first to say that the open pit ban was a big blow; however, the asset is impaired it was not expropriated. The government has acknowledged that they are obligated to pay compensation, yet we know that they do not have the funds to do so. Furthermore, we know that the presidential decree has to be ratified by the legislature before it becomes law. Let me posit what I consider to be an entirely likely scenario: A newly elected president makes a partisan speech to supporters. Like all politicians, he wants to change the world. A Reuters reporter picks up his comments and, putting two and two together reports a ban on open pit mining. Trapped with his own words the president cannot retract his statement. Later as he starts to talk to un-employed people and their representatives affected by his decision to kill what likely amounts to a $100,000,000 investment in the country (both Vannessa and Wheaton River) he starts to feel some heat. At the same time he is advised by the Ministry of Mines [who stand to lose their jobs too] that Open Pit mining could actually improve the environment, as the area in question was previously de-forested. Furthermore, he discovers that Vannessa have already re-forested a large part of the site at their own expnse and their environmental study is exactly what the ministry of mines ordered. Now he realizes that being a president involves more than being for green trees and clean water. That is an un-assailable position for a candidate, but now as president the question is how to enact all his great promises. Maybe principles have to be compromised, maybe that compensation money could be better spent elsewhere. What to do? Why not put it on the back burner until the heat dies down. Maybe something will come up. That is just one possibility. Another one that has puzzled me, is why there was such a large short position on the stock--upwards of 1,000,000.00 shares. That is a very dangerous thing to do in a gold bull market--unless of course you know something is going down in Cost Rica, then it is a licence to print money. Now those shorts have to cover their positions so that might answer the question on where the buying is coming from. Too much of a conspiracy theory? Perhaps. Finally, lost in all the panic was a favorable development in Venezula--the supreme court has agreed to hear the case by Minca charging that the expropriation was unconstitutional. That ties up Cristinas for a year, and I doubt Chavez will be around to hear the outcome. All in all, I would have to say that the damage has been done and the present price represents the worth of Potaro alone, not factored in is the eventual outcome of Crucitas and the lottery ticket value of Cristinas.