RE: Resource investment conferencereyesingup, I will repost Alladin21's post from yesterday as it was very informative... I trust this will help.
Regards, DH
This weekend I had the opportunity to meet Diane and Clifford James in Calgary, and this experience has reinforced a lot of feelings I have had about the company, and cleared up a few grey areas for me. First let me say that Diane and Clifford James are two very excited people, they seem to have a passion for what they do and they both seemed to be very genuine. It is important for me to put some faces and personality to these people.
Here are a few things I learned and a few things I suspect:
The recent PP was indeed as we believed, necessary to close the deals on the new China properties. Diane explained that these properties are hot properties with geology very similar to that of Shuikoushan. I believe from our conversation that letters of intent have been signed, but a NR will only follow a firm deal. This won’t be soon, but in Mr James words “very soon”.
One would think these acquisitions will move the share price and so you would think Haywood would like to close their financing before this happens. I’m not sure if they have control over this or not. In Diane’s words “maybe we’re just being optimistic, but we think the closing price could be quite higher than it is now”
Now I like it when management are optimistic! I’m no expert on the details of the PP so maybe somebody could help me out here.
Diane reported that Nevada Geologist Mr. Kevin Russel loves the new properties in China. He has experience in China since 1996 and spends his days off digging up rocks. His enthusiasm and experience are key here. Diane explained there are a lot of larger mining companies in China “desperate for ore”. It would seem to me a natural for a smaller mining company with their own drilling outfit to prove their resources and make a quick buck. Getting the right properties quickly before they are snapped up seems to me to be the right strategy.
Ex-Newmont boss Allen Flint has been lured out of retirement by the prospect of some of these properties. One would believe that this addition is a sign of good thing to come. Allen Flint is a great asset because of his experience in Asia.
I asked Diane about how many drills are in China and she seemed unsure. I seem to remember the news releases saying there were two drills but I could be wrong. Are there more drills there? What does this mean?
TVI suspect the strike zone in Xianrenyan is probably about 6km in length where Team 217 reported the zone to be 2.6km. This is supported by surface geology and by the local small scale minors who have mined successfully for up to 4km. All illegal small scale minors have since vacated Xinarenyan in an orderly fashion.
Results in China are still expected in “late spring”. I have a feeling this is weather dependent. An early summer may bring earlier results. Spring is wet in the Hunan Province.
In the Philippines the news is equally bright. The Canatuan mine which has been shut down since February is scheduled to reopen May 15th. The mine was closed for renovations. Expansions to the facilities were needed to increase the production. Again, you have to believe this is going to a bonus for shareholders. Because of the expansion, a new feasibility study should follow the re-opening of the mine. Mr James feels that there are at least five other Canutuan type mines on the property and an airborne magnetic survey later in the year should support this. In Mr. James own words there is “no doubt Canutuan will develop into a bigger area.”
Rapu Rapu should be in production by November and the smelter royalty should generate a mill to 1.5 mills a year in cash. This along with Edco will generate the cash needed to keep TVI moving forward and acquiring the right properties and the best people to prosper. Edco acts like a tax shelter for TVI and this is why again TVI is debt free and expanding. SWG for example are in China and using Edco drills.
Mr James presentation was informative but limited to only about 8mins. TVI has a lot to cram into 8mins! Thankfully we got to chat at the booth.
Hope this update helps. Hang on for the ride fellow TVI investors!