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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.
Now, now, Leon, you know that is no way to look at it.
1. First of all I don't pick winner to gain readership.
I pick losers, and the bigger the better.
b. International Precious Metals,
f. Canadian Resources Market.
Can you do better than that? Fess up.
2. Now with Geodex, of course an orebody exists. That is why they are being so quiet. They are just manoeuvering to pick up the stock. We know their tricks.
3. The outcrop extends as far as your gullibility will allow it, to facilitate your spending of money. It ends where you are overmargined on friday night and your cell phone battery tanks as your car gets a flat tire on a rural road. News out monday.
4. Orebodies is fifty-fifty. Either they are there or they ain't. Toss your coin and get on the bus.
5. Of course if you actually find a mine there are several choices a through f:
a. You get ripped off (Likely)
b. You can't finance it. (very likely)
c. You get it in production, the metal price or stock tanks and you lose money. (happens all the time)
d. You sell all your stock as the drill program winds down and go on a vacation. When you come back they are asking you "did you ever hear of HEMLO?"
e. You decide the stock has to go nowhere as the Uranium/Diamond/copper/Vanadium/tunsten cartel controls the market and the big boys won't let them play. Every day the stock price rises 24 cents as each day you expect it to fall again. It does this for one year. Life, they say, is actually slow death.
f. The company has just drilled 100 feet of 3.5 % nickel and nobody buys the stock for two months. Your broker tells you it is only one hole and insignificant as they cannot mine nickel profitably in remote locations like Labrador. You believe him.
Let me know what happens on the drilling. I will tell you what they hit by the price of the stock.