I'm sure most have read this on stockhouse but I forgot to post it here.
The meeting with CBI went excellent from a technical and share potential point of view. Terry and Steve
were well prepared with articles on other firms, samples of laterite nickel sheets and many pictures from the plants that Terry visited while in Australia. As previously posted, the gold play is on hold until the gold market returns. The nickel play has become the number one project. Venezuela still has great potential, but with gold prices all over the map there seems to be no interest in juniors. As per my earlier comments, please understand that the gold play is definitely not moth balled but just on hold until the market becomes more favorable. I truly believe that it is the best business decision for both the company and shareholders.
It is believed that we will require approximately 12 holes in the main zone in order to prove up the nickel content (for the satisfaction of the SEC) that the previous 2 majors had determined. Eight crews are currently bagging and tagging the samples which should be enroute for assaying in Canada very soon. Many other holes are also being currently worked on through out the property, but there is a priority on the previously mentioned 12 that will enable us to prove up the main zone as quickly as possible. There should be some news out before Christmas on related matters such as possible land acquisitions and updates.
Management is fast tracking the results to be released as soon as possible, however it is unlikely that the results will be ready for release until early first quarter which is when the stock should get going.
I previously reported the potential of the property as the Cominco and Transmetales work indicated at least 34 mil tonnes at 1.81% nickel, which is only 5% of property tested and doesn?t include other potential property?s. This equates to over 1 billion lbs. of nickel @ today?s price of $3.65/lb. US at 70% (CBI?s portion) calculates to a 3.8 bill asset. What would someone pay per pound if proven? It?s the big question!
I have inquired into a couple of other companies that are in the same situation as CBI with regards to which stock exchange they will end up on and was happy to hear that the TSE was an option for the others. These companies can qualify for the TSE if they meet continued listing requirements. CBI management was of course unable to comment on this issue. It is my understanding that the TSE will make their decisions by Dec. 6, 1999.
Another meaningful point that I have learned, was that Inco have also shown interest in laterite deposits by announcing that they are proceeding with a $50 mil project in New Caledonia. Inco also holds a property about 30 km. from the CBI in Guatemala (their property projects 75 mill short tones at 1.83% nickel). If you combine our property with theirs it would certainly make it a world class play as it could easily and economically share facilities.
Terry and Steve explained to us the chain of events that took place to which the Guatemala property became available to CBI. In a nutshell, it was through the relationships they had with a Guatemala mining company which were verified by unrelated parties that were involved with the play well before recent technologies became available. They were even able to retest a few pits with results very close to the results that were reported years ago. The combination of excellent networking, long-term relationships and keeping up with leading edge technologies (HPAL or high pressure acid leaching) brought this one in while beating others to the punch.
Combining the facts that the nickel market is strong with the success that other nickel firms are having, while considering our promising nickel numbers, our stock should return to previous value. However, as excited as I am, this may not happen overnight. It is my belief that if you hang in, rewards will follow in Jan-Feb. The only way to share my enthusiasm would be to go to the office and see for your self.
The comments that I heard from the other shareholders that attended the meeting with me was that they were very impressed with Terry as a committed and trustworthy leader. We felt that Terry has an excellent grasp of how to move this thing forward and that he showed that he was acting in the best interests of the shareholders. (Keep in mind that it certainly is nobody?s fault that the gold market is weak) He has done a great job in recognizing and acquiring an excellent play while we wait for gold to improve.
Another point that I wish to point out while I conclude, is that the same management team has recently brought Corner Bay into a valuable position. They plan on using some of the same processes with CBI when our results come in. This combined with the fact that some of Corner Bay?s recent institutional following can only help.
One of the next possible news releases could outline which company will be chosen to do the metallurgical testing. The test results are crucial to our success. The steps that follow are that after the assays are done, the samples will be sent to a metallurgical lab that will be equipped to use the new process (HPAL) to determine the extraction rate.
I hope this update is as helpful to you as the meeting was for myself and the share holders which accompanied me. Please feel free to ask any questions that I may have missed that may be of importance to you.