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A year on SI and nothing thus far has come to fruitation. The talk and technical analysis appear to have had no effect or merit. In talking with mgm't over the past year a rosy picture was painted, as expected. However the mining industry was going into a slump with low commodity prices, and today no institution will finance a junior looking for precious/base metals and diamonds.
The diamond prospect in Africa is history because financing could not be arranged. Since financing is dependent in part on higher commodity prices, the best Geodex can do for now is seek out good properties and be ready come the upturn. At least they appear to be doing that much with properties in North Africa and Mexico being looked at.
Maybe better days lay ahead for the industry and Mr. Marr will find that special property. But since my technical analysis doesn't correlate with anything since Sept.1997 and properties are written off, all that would remain is emotional attachment.
I will continue to investigate where interpretation may have gone off course. For example, there is a positive divergence in weekly PVT (price/volume trend) chart. A reverse divergence of same occurred Sept. 1996 before Chimborazo was announced and the subsequent price decline. Both versions should normally signal a reversal of prices.
I will avoid any further investments in all firms until I clear up this matter.
The divergence referred to in last message was magnified by some recent trades this year.
June 24 20000 15-19 cents JG 14:16 EST Aug 10 13000 8-9 cents Golden Capital 10:24 EST Aug 12 15000 10 cents Dominion Securities 15:18 EST Sept 9 20000 10 cents Nesbitt 9:30 EST
All above were on upticks.
On what basis did these purchases take place, other than speculation. Shares for debt and the fact management has put in their own money at deemed 15 cents. Maybe on talk about a diamond prospect which did not materialize.
Can anyone who was involved in the trades above please contact me.
The people have spoken with their silence. The purchases I assume, were based on speculation, as no news of property acquisition was made nor is any forthcoming for now. The company is relocating to other premises to cut down on expenses.
OBV technical analysis remains neutral despite others showing otherwise. This, in my interpretation, casts doubt over the reliability of the other indicators. Thus taking up positions at this time is questionable.
There may be cycle players involved who believe that copper prices, etc. will increase and financing then, more easily obtainable. In addition, the high expectations held for Mr. Marr and staff, may have led some to speculate on the stock's future price.
Cycle players were probably involved Aug23-Oct2/96 as most of the action occurred before the news release of Oct3. In hindsight, the selling was near the market top. The first person on this thread came in after the news, but by then, well... The private placement in May was sold off Sept. 16, buried in the distribution of stock.
The news was reported by Canada Stockwatch, but I am not a subscriber. If go to stockhouse.com and type in V.GXM and then click on Aug 17/99 news release, there it tells who participated in the private placement. As of yesterday's news release, probably the VSE has accepted the private placement and Mexican properties to which the placement refers. This in effect, should take the company off the inactive list.
This private placement will be used primarily for Phase 1 geological and geochemical testing, which will involve mapping, prospecting, silt and soil sampling. To date, on the Teck/Geodex properties, only grab samples from outcrops and mining dumps have been obtained. Reconnaissance-style work has been carried out earlier by Teck., both on land and from air photographs.
All properties are at the very early stage exploration, thus speculative risk is high until further work is completed.
Stage 2 will focus on the most promising areas determined in the first stage. Advanced geophysics and ultimately diamond drilling will occur in stage 2. The Company proposes to follow the present private placement with a brokered one.
Could debate the merits of the properties, but the findings are outlined in previous news releases. For example: The Papigochi copper prospect, which is surrounded by Kennecott claims, lies within a belt of porphyry copper deposits which extend into Mexico from the US and includes the large copper mines of Arizona. Located 10km from world class Cananea mine which also is a porphyry copper deposit with 2.2 billion tonnes of .62%Cu., Papigochi exhibits a large gossanous sulphide system as viewed from air photographs. A small interior claim has waste dumps with malachite staining. Good chance that can use solvent extraction/electrowinning recovery processes on this deposit thus make copper mining extremely competitive.
The other three properties involve gold. All veins-like in nature except Virimoa in which the gold occurs in silicified volcanics. Further south an area of intensely brecciated and pyritized volcanics exist. A wide bulk-tonnage gold zone is expected.
The agreement with Teck is good. The time schedule for future work has not been determined. The current mining climate has management concerned also. The private placement of 1.8 million units came short of the 2.5 million expected. In a stronger mining climate, a fully subscribed PP may have been possible.
Insiders have participated in the current private placement, with both Marr and Maris taking down 200,000 units each. Other insiders also took part in varying amounts.
I also took part in the PP as a speculative play at this early stage. This stage is risky as most information revolves around grab samples and outcrop rock chips. Cautious people will probably wait until more detailed exploration occurs. Low metal prices are a concern especially when it will come time to enter Stage 2. Money for Stage 2 will depend both on results from Stage 1 and on the mining climate in the future.
A long way to go. I have not seen a news release saying the company has been designated as "active". In today's newspaper, still listed as inactive. On Stockhouse website, I noticed a news release regarding the private placement.
I sent message to myself #181 which was meant as a second reply to your inquiry. I don't know why the company is still on the inactive list, I wonder if management is thinking of something in addition to mining. Active status will be given when restructuring is completed. They have discussed various ventures designed to create cash flow. I suppose the internet. etc. would be under consideration. However, they require the money raised for exploration of the four properties. I would proceed cautiously into any additional ventures. The mining climate is tough, so it is tempting to look for other ventures. However, if can be done without a large outlay of capital, maybe worth looking into.
News today on Tyranda property in Ontario sounds encouraging. Massive sulphide property with zinc, lead and copper. Is on Kidd-Munro Assemblage which also hosts the Kidd Creek deposit plus other mines.
Thanks for reply, its been lonely here for the past year. I will look into your mining newsletter. So many of them out there, thus the focus on picking winners to gain readership.
Now Geodex. No one stated that an orebody exists, just the possibility. If was that easy, my money would flow.
I think would be best to wait for brokers to pick up this story. Next two weeks they will be receiving detailed info. on this property, and we will let them analyze. I will post their reports as soon as get. If none pick up, then that will speak for itself.
Mineralization discovery is the first step. I would be curious about how far this outcrop extends and whether, if lucky, an ore body exists. No previous exploration. Maybe wait for first drill results. The company feels the 5 holes will be enough to determine if anything worthwhile exists. If so, then the only question will be how much and whether it will be economical which will be proved up with further drilling. A speculative play may be possible if preliminary drill results show good values. Only 1 in 5000 discoveries turn into a mine. The odds will always be against junior miners, although like Teck and others, some beat the odds.