RED EAGLE EXPLORATION LIMITED V.XR

Galway Gold and CBJ

[Lunchisforwimps]

Galway Gold has 500 k indicated and inferred at Vetas. CBJ has similar numbers at 400 k right beside. Combined both companies will generalize they think the two combined could have up to 2 million oz with more drilling (1 million oz each). A business combination seems to make sense although CBJ must cleared on the paramo (seems so but needs confirmation). Galway needs to deal with its landowners in arbitration.  It would really depend on valuation as each would argue they have the more valuable property. 

Not making excuses but epithermal veins are notoriously difficult to 43-101.  Many small offshore producers don't bother measuring epithet all 43-101 for that reason. CBJ has not done that much drilling hence the low number. Previous posts of 1.5 million oz were not realistic.  It is a fair statement to ask what happened to all the money put into CBJ (g and a?). Beatty cannot be happy.  I note they are currently burning 200 k a month. Down from before but far from care and maintenance.

It does appear the high grade gold is there to be drilled up for both companies. Crappy junior gold market, Columbian waffling and spending mismanagement have not helped. 

They advised at Pdac they have money until spring 2015 or thereabouts but would hope to raise money at higher prices to start year end drilling. It now appears that will be dictated by the market (an unsettled market with a falling gold price sans today). The fellow at the booth was a realist and shot straight.

The all day halt is perplexing and disconcerting.  Perhaps the exchange is grinding them on the 43-101 numbers. They do that....

[geocycle]

They are not. This is yet another ludicrous story that hurts the whole industry.  CBJ has been carrying themselves along on a single, oblique drill intercept (October 24, 2011) that was obviously drilled in that manner in order to fool the market. How do you drill 114.98 m @7.57 g Au/t and end up with 123,000 indicated oz Au almost three years later?  Simple, the strike

[Dansul]

I am telling you guys this is a SCAM management from day one.....

[Lunchisforwimps]

Pretty hard to argue with that assessment, they drilled the epithermal and rode that intercept.  I was being kind.  With regards to CBJ, I was merely suggesting perhaps CBJ management should give up the ghost to Galway management with a business combination (cut g and a). The combined entity would likely be worth more and give CBJ shareholders a fighting chance when gold turns around