Encore Renaissance Resources Corp V.EZ

Bonaparte will become a profitable mine

[Thovarain]

The problem is how management went about getting there. Too much dilution, too many mistakes with accountancy (or lack of) and too little experience with the actual business of mining. There is nothing wrong with the property itself. On the contrary. The Bonaparte property shows great promise. Not only extracting high grade material that has been PROVEN to be there - yes I said  PROVEN, but also in lower grades in some of the stockwork material surrounding the veining. The previous bulk sample of nearly 4,000 tonnes extracted in 1994 graded at approx. 26g/tonne and was extracted exclusively from one vein - the Raven Vein through a combination of trenching and open pit style mining to a depth of about 30 metres. The current mining operations at Bonaparte are intended to access all known veins discovered in a very small portion of the property by means of an underground decline which they have advanced approx. 175 metres so far. Contrary to what one or two posters have said, they are not 'chasing' the high grade material. They ARE encountering it from time to time as they hit new and known veins while driving the decline in a spiral/oval to approx. 75 metres below surface at which point they will be able to DRIFT onto ALL the high grade vein structures. This is merely stage one of the plan to develop the whole mountain top (or very nearly the top). I have been to the site and seen these veins -  this is a real project and potentially very lucrative.

Now back to the problems:

1) Non-Filing of financials leading to cease trade order:
Yep, they @$#% this up royally - no question. Why? Who knows. Does it matter? Will we ever know the whole truth? Probably not. The thing to remember is that a lot of time, money, research and actual mining have gone into building the company up to where it is (however sh#$ty that seems at the moment) and 'THEY' are not just going to walk away with your considerable money (already spent on digging holes in the ground). It takes a heck of lot to put a publicly traded company into action and much more to keep it on the exchange. "They' are not just going to say "Oh well, this really hard, I think we better run home crying to mommy".
Don't get me wrong, I'm not trying to defend these idiots, but I am trying to point out the facts of business and that this company WILL trade again and WILL show its investors they did indeed extract a small bulk sample (the first test portion of their permitted 10,000 tonne bulk sample allowed) and that it did indeed produce high grade gold and an actual CHEQUE from Kinross for the proceeds. It won't be much but it will prove there is a profitable resource at Bonaparte.

2) More money will be needed:
Yep, they are going to need more money to extract the next tonnage. That will mean more dilution and yes the share price will probably go down a bit - for a little while. However, If they can start showing actual profits from the small scale mining (which was the intention all along) and continue to expand the resource while doing so then the market will improve dramatically especially as gold prices are not expected to decline any time soon and most predict gold price will continue to rise. This will create an 'earnings multiple' equation.
There is no question in my mind that once they get through all this BS they have created for themselves, they will eventually arrive at a positive cash flow position for the first time EVER in all the various incarnations of the company (CGW, GWV and now EZ). I don't think there will be a roll-back until they are receiving regular cheques from Kinross. At that time the market will be more forgiving of a consolidation, if at all.

That's all I'm going to say for now except that I understand 'they' are very close to getting this trading again and that we will see news soon on processed grades, revenue and expected forcasts for further extractions and shipping of ore - and yes it IS ORE regardless of what lexicon the bl$%dy lawyer or exchange regards - that too is a bunch of BS.

Thov

[Thovarain]

It is my understanding that has been mostly spent on exercising the property option obligations.

[JennyB2]

Sorry, I just forgot to type the rest

[dogger2]

Birds of a different feather !!The main quartz vein system, the Crow vein system, consisting of several irregularbranching veins has been exposed by trenching over about 200 m north-south along strike.Sampling values average out to 41.41 g gold/tonne over a width of 0.81 m and over a lengthof 63 m. In 1994, almost 4,000 tonnes grading over 24.0 g gold/tonne was mined in anopen pit and shipped to