Wednesday, October 31, 2012

Copper Fox - Do we set Stop Losses

Yes.
I'm setting mine at 98 cents. 99 cents has some serious depth to it but I think if we don't see the BFS soon this will be tested.

Todays trading is light as people hold their breath waiting. Will it drop won't it drop there's still tomorrow and Friday...

At some point this week we may see another dump if someone get worried that it's not coming this week. Last time I told my friends to set them a $1.05 so they could make a few pennies and that turned out to be sound advice. I think erring on the side of caution is advised this time but not for making 5 cents.

Forgot to add. They are supposed to be in Vancouvcr. I was expecting them to be back tomorrow. I hope they release the document Friday at the latest. But given the pattern of timing I won't be surprised to see it when the polls open in the USA. That's good for us but not so good south of the border. My American friends will not be pleased. So guys, pack your iPhones to the polls. (Give us an impromptu exit poll)

3oz/t Gold? Story in the Works

Am I reading this right?

Next month I'm going to compile a story on a company that has good prospects. (up to 40g/t). They are waiting for some re-assayed results and confirmation. The double check is required. I think there must be a mistake but if not this will be one hell of a ride. Not many companies find 3 oz per ton anymore in what looks to be a large system. The company is under 5 cents and is struggling. Insiders and workers are keeping it afloat. They seem to be able to raise money privately. About 60% of the shares are in certificate so they can't be traded but that still leaves 70 million shares in the float.

Why I'm waiting. The preliminary analysis suggested 40+g/t and they said "meh itsa good". We are talking the edges of a stock works or epithermal system So this isn't economical yet. Get some depth, closely cluster veinlets or a thick stock and we'll talk.

Now this is where this go wrong. The sample that returned the results was a known control sample or at least the thought it was. Same lab, different result. So obviously this has to be looked into. No, this was not a BGM. This was a lab result. Could it have been a nugget effect? If so, they are barking up the right tree. There is a lot of course gold down stream and no one has ever located the head. This is why I'm waiting for the analysis to come back before I dip my toes. I figure that if true then in under 2 years we'd be talking a major spin off.

Stay tuned. We'll be able to get in on the ground floor long before the market smells blood.

Tuesday, October 30, 2012

CUU.V Prerun to the BFS?

It might be a bit early to call it. TD was down for a while so this might be pent up buying. Here's a shortened list of who's trading. Notice they are not revolving shares between the 4 houses we are used to seeing.

Time & Sales



PriceSizeExchTime BuySell
w  1.06700TSXV15:59:52 
Anonymous
001
CIBC World Markets Inc.

PO Box 500
161 Bay Street
Toronto, ON
M5J 2S8

(416) 594-7000 begin_of_the_skype_highlighting              (416) 594-7000      end_of_the_skype_highlighting
079
1.061000TSXV15:58:51 
Anonymous
001
RBC Capital Markets

P.O. Box 50, Royal Bank Plaza, South Tower
200 Bay Street
Toronto, ON
M5J 2W7
(416) 842-2000 begin_of_the_skype_highlighting              (416) 842-2000      end_of_the_skype_highlighting
002
e  1.0635TSXV15:58:32 
Macquarie Private Wealth Inc.

P.O. Box 779
Suite 3200,
181 Bay Street,
Toronto, ON M5J 2T3
(416) 864-3600 begin_of_the_skype_highlighting              (416) 864-3600      end_of_the_skype_highlighting
046
TD Securities Inc.

P.O. Box 1, TD Tower
12th Floor,
66 Wellington Street West
Toronto, ON
M5K 1A2
(416) 982-8222 begin_of_the_skype_highlighting              (416) 982-8222      end_of_the_skype_highlighting
007
1.06100TSXV15:58:32 
Anonymous
001
TD Securities Inc.

P.O. Box 1, TD Tower
12th Floor,
66 Wellington Street West
Toronto, ON
M5K 1A2
(416) 982-8222 begin_of_the_skype_highlighting              (416) 982-8222      end_of_the_skype_highlighting
007
1.063100TSXV15:58:15 
Anonymous
001
RBC Capital Markets

P.O. Box 50, Royal Bank Plaza, South Tower
200 Bay Street
Toronto, ON
M5J 2W7
(416) 842-2000 begin_of_the_skype_highlighting              (416) 842-2000      end_of_the_skype_highlighting
002
1.061000TSXV15:58:15 
National Bank Financial Inc.

5th Floor
1155 Metcalfe Street
Montreal, QC
H3B 4S9
(514) 879-2222 begin_of_the_skype_highlighting              (514) 879-2222      end_of_the_skype_highlighting
080
RBC Capital Markets

P.O. Box 50, Royal Bank Plaza, South Tower
200 Bay Street
Toronto, ON
M5J 2W7
(416) 842-2000 begin_of_the_skype_highlighting              (416) 842-2000      end_of_the_skype_highlighting
002
1.071000TSXV15:57:32 
Newedge Canada Inc.

Suite 1930
1501 McGill College Avenue
Montreal, QC
H3A 3M8
(514) 841-6210 begin_of_the_skype_highlighting              (514) 841-6210      end_of_the_skype_highlighting
101
RBC Capital Markets

P.O. Box 50, Royal Bank Plaza, South Tower
200 Bay Street
Toronto, ON
M5J 2W7
(416) 842-2000 begin_of_the_skype_highlighting              (416) 842-2000      end_of_the_skype_highlighting
002
1.07100TSXV15:57:32 
CIBC World Markets Inc.

PO Box 500
161 Bay Street
Toronto, ON
M5J 2S8

(416) 594-7000 begin_of_the_skype_highlighting              (416) 594-7000      end_of_the_skype_highlighting
079
RBC Capital Markets

P.O. Box 50, Royal Bank Plaza, South Tower
200 Bay Street
Toronto, ON
M5J 2W7
(416) 842-2000 begin_of_the_skype_highlighting              (416) 842-2000      end_of_the_skype_highlighting
002
1.07100TSXV15:57:32 
CIBC World Markets Inc.

PO Box 500
161 Bay Street
Toronto, ON
M5J 2S8

(416) 594-7000 begin_of_the_skype_highlighting              (416) 594-7000      end_of_the_skype_highlighting
079
RBC Capital Markets

P.O. Box 50, Royal Bank Plaza, South Tower
200 Bay Street
Toronto, ON
M5J 2W7
(416) 842-2000 begin_of_the_skype_highlighting              (416) 842-2000      end_of_the_skype_highlighting
002
1.072000TSXV15:57:32 
Anonymous
001
RBC Capital Markets

P.O. Box 50, Royal Bank Plaza, South Tower
200 Bay Street
Toronto, ON
M5J 2W7
(416) 842-2000 begin_of_the_skype_highlighting              (416) 842-2000      end_of_the_skype_highlighting
002
1.081000TSXV15:56:28 
BMO Nesbitt Burns Inc.

49th Floor
1 First Canadian Place
Toronto, ON
M5X 1H3
(416) 359-4000 begin_of_the_skype_highlighting              (416) 359-4000      end_of_the_skype_highlighting
009
TD Securities Inc.

P.O. Box 1, TD Tower
12th Floor,
66 Wellington Street West
Toronto, ON
M5K 1A2
(416) 982-8222 begin_of_the_skype_highlighting              (416) 982-8222      end_of_the_skype_highlighting
007
1.083000TSXV15:54:31 
TD Securities Inc.

P.O. Box 1, TD Tower
12th Floor,
66 Wellington Street West
Toronto, ON
M5K 1A2
(416) 982-8222 begin_of_the_skype_highlighting              (416) 982-8222      end_of_the_skype_highlighting
007
Desjardins Securities Inc.

1170 Peel Street
Suite 300
Montreal, Quebec H3B 0A9
(514) 987-1749 begin_of_the_skype_highlighting              (514) 987-1749      end_of_the_skype_highlighting
019
1.09500TSXV15:50:43 
Scotia Capital Inc.

P.O. Box 4085, Station A
Scotia Plaza
40 King Street West
Toronto, ON
M5W 2X6
(416) 863-7411 begin_of_the_skype_highlighting              (416) 863-7411      end_of_the_skype_highlighting
085
Scotia Capital Inc.

P.O. Box 4085, Station A
Scotia Plaza
40 King Street West
Toronto, ON
M5W 2X6
(416) 863-7411 begin_of_the_skype_highlighting              (416) 863-7411      end_of_the_skype_highlighting
085

Monday, October 29, 2012

Happy Creek Moving Up

What people don't understand about Happy Creek yet.

There are about 500 thousand pp shares going through right now. That represents the last of them and the only thing holding up the sp show. Us smart guys won't give a premium for them. 18 cents or perhaps 20 cents but that's it. Once those are gone you can expect the sp to double in short order. There are not enough shares in the float to make everyone happy so some people will pay more.

How big is their copper deposit?  In a word, huge. With sparse drilling I can calculate an easy 1/2 billion pounds. Compared to GRV or CUU this may seem like small potatoes for now. GRV has a lot of overburden and CUU is fighting an uphill battle with the sp. What people don't know is the scope of HPY. I suspect that between the 2 zones they will churn up 5 billion pounds. The grades are good and getting better. On piece of land has hardly any work done and has room for a major to partner up. The recon is showing a massive couple of deposits. CUU people have seen this signature before! Here's zone 1: http://www.happycreekminerals.com/i/Thumbnails/maps-Jan-2012-zone1-WebMap2.jpg 
Here's Zone 2: http://www.happycreekminerals.com/s/PhotoGallery.asp?ReportID=456290&_Title=Zone-2-DDH-Magnetics

See the Property description: http://www.happycreekminerals.com/s/Rateria.asp?ReportID=153538
Then look at the NR from January: http://www.happycreekminerals.com/s/NewsReleases.asp?ReportID=504607&_Type=News-Releases&_Title=Happy-Creeks-drills-0.59-copper-3.9-gt-silver-0.11-gt-rhenium-in-the-final-...

Remember those huge Rhenium hits? They look like the calculate out to be 5 kilos a tone in some spots.  Rhenium only really counts when it's economical to process it. A 1/2 kilo is worth money. Over that is a big payday. Now, I know for sure this did not escape the guys in Pensilvania. You can bet they saw this and called. I hope we get more info soon about it. This is a very big find for Canada.  
And then there's the tungsten open pit possibility. Currently, there are not a lot of open pit options out there. I discuss Blackheath because they know there's still value in reactivating those old mines. But here is a fresh untouched open pit mine. For just 35 million this can be up and operating. FYI, I bet that's exactly what HPY will do. We should keep an eye out for money talks. I also would listen for partnership rumors. Here's why. There is currently about 60 to 80 million worth by extropolation. I bet that with a bit more drilling they will prove up to 90 million worth and I calculate the potential to be 300 million. This latter estimate will take about 1 full year of drilling. I think that in less than a year someone will make an offer they can live with. So a $2-$3 spinout is completely in line. If for some strange reason no deal can be reached then I give them 3 years to go for production. Fortunately there are examples so we can safely say the IRR will be outstanding. Factor in the cost of money (dilution and equity) and this is easily $7 before the first shipment. If the full potential is reached with an estimated IRR of 52% you'd be looking somewhere over $16. Obviously I'm not going to bother with the multiples some would expect for a company with earnings. You should also read this: http://www.woulfemining.com/s/NewsReleases.asp?ReportID=520132&_Title=Woulfe-Mining-Reports-NPV-US400m-with-46-IRR-Sangdong-Feasibility  Remember that this is under ground.

The Hawk property as you've seen is ripe for a JV? Perhaps Henning Mining, a private company, might want to bring European money in and claim a share. This is right up their alley. I could see an even bigger group coming in because the results just keep getting better and better. Go here and look at the table of samples: http://www.happycreekminerals.com/s/NewsReleases.asp?ReportID=552063&_Type=News-Releases&_Title=Happy-Creek-trenches-5.0-metres-of-0.76-copper-2.09-gt-gold-at-Hawk-propert... 

And then there's the free Silver Dollar property. SD looks promising. There are a lot of historical around that area. The are doing some airbourne work and I'm gonna bet they find something worth looking at. When was the last time you came across a company with this many promising properties? In August the studied the West Valley property and came up with some geology that shows some very high potential targets. It's like they can't throw a stone without hitting something. I challenge you to find a better set of properties anywhere.

 So here's a little project generator that's completing it's mandate to become a producer. It's going to take a very serious offer to get them to allow someone in.

Lastly,
Water issues - No. Has permit. Unfounded.

Buy HPY.v Happy Creek

About 500k worth of cheap shares to go. A new post is coming tonight.

Earthquake, Flood, Hurricane...

Snow up to my boots. (:<) Anyone see brimstone?

So with the americans battening down the hatches would it be fair to release the BFS? I'm thinking NOT. It's just not a good week in general. On the lighter side, British Columbia finally made world news but it was for the tsunami we sent over seas.

Here's a post from Stockhouse for your amusement:

Bowel movement coimpleted Orca shows up here......Please bring back duffy..No doubt he messed up real bad....5 strikes your out rule

You can see the quality of the DD. This is from their main poster. If it wasn't for Foxxy the Orc and a few others I can't imagine what that board would read like.

Funny today that Yahoo and Agora are having trouble with their message boards. So I won't be selecting some of their more choice messages.




Sunday, October 28, 2012

CUU.V Warrants and big EE

There's lots of talk about EE not exercising his warrants. Why would he pay $1.50 when he can get the next PP cheaper and the share price is being manipulated down. If you look at a chart the sp started sliding at the end of Sept when the BFS did not appear as promised. Mid Oct they gave us the drilling results. We bottomed around the 22nd. This was the result of fear regarding the BFS being massively delayed. Unfortunately, the company has to take this one on the chin. They gave another inaccurate time frame while at the Toronto show.  This delay (1month review) is being done because they must make an air tight BFS. If Teck requested it or they felt it was best you can bet they gave thought to the share price and the kicking it would take.

Now it is becoming known to the public why the overtime was committed to. You'll see this in the share price next week. Unless the company comes out with an official delay notice we should expect them to release it right away. There are pessimistic estimates of January for the release. I can't see any grounds for this. There would have to be a serious flaw to justify not producing it asap.

Looking at the houses and share swaps as mentioned in another post it is obvious this was a small group of people with a lot of shares capitalizing on the missed deadline. Have no doubt about it. These guys are loading their positions back up. They think there's time to do this next week. They may be wrong and I hope they are.

If they get loaded back up you may see another round of selling.

The Price of Copper Fox

More info to help you decide what it's worth. Here's just a few of the resources that help me make up my mind on the value. (33% of the value seems to be a fair price for the pounds in Canada)

http://www.safehaven.com/article/17695/intangible-assets-increase-tangible-value-to-aqm-copper-shareholders

http://www.wealthdaily.com/articles/copper-mining-stocks/2577

View Point:
http://www.foxbusiness.com/news/2012/10/25/bhp-sees-mining-opportunities-based-on-volume-rather-than-price/

Here's one I forgot to add to the ideas list. I'll have to update that one (after I get all the sahres I want lol). But here, is their data. http://resourceinvestingnews.com/36128-copper-feasibility-study-new-mine-canada-yellowhead-mining.html  Yes, I have studied them and live not far away.

Adendum
A post by: Curius at Agoracom just to remind people of the growth.

bfs 2008 vs bfs 2012!!!!!
posted on Oct 28, 12 09:56PM Use the IP Check tool [?]
BFS 2008 Bfs2012
Price Price
cu---$3.12 cu---$3.50
au---$682.85 au---$1700.00
ag---$13.09 ag---$32.00
mo---$3.00 mo---$33.00
Measured, Indicated & Inferred Measured, Indicated & Inferred
cu---4,76 billion cu---10 billion
au--- 4.5 million au--- 10.6 million
ag---32.5 million ag---98.3 million
mo--- 255.2 million mo--- 700 million
100,000 tons per day 120,000 tons per day
Credit copper production -$0.32 Credit copper production -$2.00 minimum
mine life 22.6 years mine life 37 years
Just with that, Ithink we can have $7.00 by shares

Saturday, October 27, 2012

The BFS Arrival - Copper Fox End Game

Guys are saying there's one section outstanding for the BFS and that's the economics portion. If this is true then I'm calling the report completed.

Running the numbers is not that complicated. They won't be revising machine costs or the prices for building the mill. All those major costs will be written in stone by now. So what sensitivity numbers will be checked? The case numbers would be down to inputs and outputs. They would be looking at real grades, prices and concentrates. This should take no more than a day. Then comes writing the final draft for the public.

We normally get a brief that is published and then the full document comes out on Sedar within 45 days. It's possible that they dump all the data at once. Those expecting a Mira report first might be dissapointed. Mira already did it's job and provided confirmation which was backed up by drilling that shows proof of another deposit. Drilling up in the brechiated zone gave us identical result to the known trend even though they didn't make it all the way to the charged area. Those who expected the last two holes to be glory holes where not being realistic. Try 20 holes laddered across the anomaly. Even that would barely outline it. But, at the end of the day it doesn't matter what retail think. It only matters what the buyer thinks.It's pretty clear now that Teck did say stop drilling. So they did accepted what we had as proof enough.

On the share price. This is the first time Elmer has expressed concern. I got the impression he thought the sell off was due to people not understanding the drilling. I don't see that as connected. I posted thoughts about that briefly previous. We can safely conclude that someone doesn't like us and has enough shares to manipulate the price. It's pretty clear they didn't want the warrants in the money. And last, they wanted to try disgrace the stock. Call it a proxy war without the proxy. The net effect was that it impacted the PP that was open.

This did not impact the BFS schedule. I think Elmer will go discuss the final results next week in Vancouver. From their they will make the public draft and Teck will have 24 hours to approve it. Wed, Thurs. both would be good times to get it out. But in reality, Monday would give us the most time to see some reaction. Do they want to release it right on Halloween? Do they let yet another calender month appear on the wall before releasing it?

Lots of people have said another month won't damage the sp anymore than it already is from the delays. But do they want to release it during an election? I'm thinking not. For one thing that wouldn't be fair to our friends to the South. Therefore, the best bang for the buck is to do it now. Of course, you could say damn it all and just release it when you think it's as complete and well covered as it can get.

I also here people saying we can't cost less than Galore. I can't believe this is going around again. Capex is related to tonnage which relates to output and to the NPV. What's 1.2 billion worth over 40 years? The method of calculating anything this way makes a 40 year horizon meaningless. So just look at the IRR to pay back the capex and what the high grade will deliver for 20 years. I think people will have a hard time accepting what a Canadian porphry is worth. This deposit is no longer a low grade money pit. It's as good as Galore and a few billion cheaper. Even my own rough calculations based off the Preliminary give an indication as to a very good IRR. We've gone those extra steps to guarantee prices like on the Port facility. The discussions with Ledcore also give us a certainty for the cost of construction. So when the conservative numbers look good, the best case numbers will be hard to believe.

I think this has had some impact of the delivery schedule for the BFS. There's also the input from Chinese manufacturers etc who can have a better price since labour for machines manufacturing is cheap and they already have a stake in this. But at the end of the day I think it is done. I'm expecting robust numbers rivaling any Canadian deposit.

I think Elmer will dish up his idea of conservative numbers and Teck will have a set of real world (adaptable) scenarios. This should make a very convincing case to go ahead and build it. I'm also betting they made a case for a state of the art mine. They will incorporate the most modern equipment and technology. This will allow teck to opt for a less expensive model should they choose. I know Elmer has spent a lot of time on this because it reflects in the concentrates.

So all the right things seem to be lined up. We have a good window to deliver it. The taxation timing is favorable for an all shares deal. The best case BFS is iron clad and ready for delivery. What more is there to say. Wait a week and see what happens.

Friday, October 26, 2012

Investing Tips

If you have investment ideas comment them here. This blog is focused on what I consider the darlings of next year. But, anyone who has serious dd on a stock should post it here. We can all look at it and even put it to a poll just to see what people think of the top ones.
CUU2.0
Blackheath
Happy Creek
Pilot Gold
Mandalay
Boxxer Gold
Gold Reach (Copper/Moly)
Focus Graphite

Nice chat with Copper Fox

Before eveyone gets too excited I should clear the air. Copper Fox can't discuss the BFS for all the obvious reasons. But, that doesn't mean we can't get information that lets us draw some inferences. So to start with I'll tell you that the company's forward plans are to complete an air tight BFS. Progress is clearly being made and for all we know it could be done and is being reviewed by Elmer and any others privy to it. They should be studying the implications and working out who to sell the company. As many already know, they have taken the initial steps towards the transition.

I asked if the pp was an indication that Copper Fox was indeed seperating the old from the new. What I wanted to get at was whether we had enough money to get us through January and into Arizona time. He says yes but qualified it. There does need to be a transition and assuming we will still own Arizona, then we will need money. Most if not all of the team is coming to the next round table too. If there were doubts about the cohesiveness of the team and their plans to work together those can be dispelled.

Getting back to the money. It's probably fair to say that this is a small step toward the liquidity event. In fact, each small item they clear off the docket is a small step towards it. I said we were looking for a signal that would give us an idea of when we might expect the next investment opportunity. As you may have guessed it is a little to early to tell. What with Teck's 120 window and all we could be looking at late winter for a deal. There is a bit of a track record for Teck to act within 30 days of an event like the BFS. They too need a final round of reviewing the data. This would mean that if the BFS came out tomorrow we'd be looking at the end of next month for an answer. On the topic of the USA election, would it impact us? Not really.

We talked about what other majors were doing. Despite what some may think, Elmer is in tune with this and has a lifetime of experience in the business. His reading of the proverbial tea leaves suggest that we can expect more majors to scout Canada. We also talked about the jobs stuff. As mentioned in another post, there is backlash to the idea that Chinese have to come in and mine here in BC because we are too stupid to learn it and there's not enough people willing to do it blah blah blah. We all know that's bunk. Sorry Christy but that'll get you kicked out of office in a hurry. We are some of the best miners in the world and we do have the technology. If you sold us out then there's probably going to be a price to pay. Returning to the subject at hand, I did tell Elmer that I do keep track of who's hiring what as an indicator of what projects are near term and mentioned that we do not see the work force being engaged. I wanted to find out what influence he might have over this by who he's talking too. He could not really answer this and said this would be Teck's problem.

So I asked about when we could expect a plan for Arizona. It sounds like they want to take advantage of the quite time. (The Long Dark Tea Time of the Soul? Author: Douglas Adams). They will begin planning next month sometime and look toward January to begin setting things up. A titan is obviously called for but I'll get into the details of Arizona around Xmass. The implication is that from now till the end of November is when we will see the BFS. Probably right away I think. But getting the window open is all that counts. I would speculate that they want the window open for November so that it doesn't interfere with the transaction and we also have a clue here because of the tax implications and tax timing to max the value. I won't go into detail here. You can talk to your accountants about why this would be the time frame most beneficial to all.

We talked at some length about how working with the local and branching out was a keystone to successful development. The implications here do impact the enviro files. This was a round about way to find out how permit progress was going. To my satisfaction, no glitches have appeared. We all know just how important this is.

So our window for the final transaction is 4 months. This leads me to believe that if Teck opted out there is in place another buyer. Perhaps more than one. If the company does not have plans for Schaft Creek beyond this maximum window (The Teck clock) then they are certain of the final outcome. So I'll go to my prediction of November 22. I think this is when we will know for sure what will be done. With that said I cannot rule out a snap offer by Teck. One thing a can think that can be ruled out is an "earn back in" by Teck. Back when they did the interview and mentioned that Teck could ship Highland Valley up there to reduce the capex, that was just an idea. So what prevents them from mothballing a project elsewhere where the political climate is bad and bring the equipment here? Nothing. So capex monguerers beware. There more than one way to do this with extreme profit.

If I have time this weekend I'll post some of my insights that I normally would not share. (Monday you can expect more RBC buying.)

Copper Fox Timeline

The final review must be done today. Back in September we were told that the reviews were under way. For a complex document like the BFS a couple of weeks for the internal review is generous. For the external review a month should be allowed. Well, this is the earliest it can come if we go by what the company has stated at the Toronto show. I've put in an email to find out if we can expect to move on.

Arizona is ready for exploration. It would be nice to know when work will start there. This means money should be raised and crews hired. Yes, these properties could go with a full sale but they are not really in Teck's focus. Besides, what would we do next? If those properties were expected to go the company would be looking for others to retain. Why should we keep the name Copper Fox? It has a reputation and a lot of value in the name. So far there are no indications that we won't be keeping it.

What does the share price and volume tell us? For almost 2 years there have been 4 accounts that have been revolving the shared between them. This gives an average volume of about 240k a day. This volume is FAKE. If you chase the price the circular trading magiccally stops and the price drifts higher. When you move up and buy the trading resumes a few cents lower. This is a computer algo. No human can react that fast. Try selling some shares and the price drops but when the sale goes through the price goes up just enough to make you wish you didn't sell. Clearly, someone has an interest in controlling the trading.

The current price and volume is entirely artificial. The Securities commission is not ready to admit just how wide spread this practice is and it's probably illegal.

The message they want you to get is that there is fear.  Right after National staked out a big position followed by RBC we saw the return of the machine. The price plummeted to $1. We are headed to 1/2 a million shares on the TSX. Crazy isn't it. With the deal of the decade in Canadian copper it looks like nobody knows it's going down. If you take out the revolving shares there's nothing! Curiously today we are seeing the houses staggered. They are trying to disguise what they are doing. For the last year they made no attempt to conceal it at all. Only today.

I think my post about the BFS was correct. The high volume with little to no price movement verifies that the machine is very active but no retail is coming anywhere near this stock. This is unfortunate for the public. I suspect the data will begin to pour out Monday. I suspect the price will gap when the truth about the deposit and its sale becomes known but it will be too late for people to get in. After the halt to announce the sale this stock could easily gap $2 at the bell. I would not be surprised to see it gap over $4. How this goes down depends of whether we get the BFS and Mira report first or if all the info plus the offer comes at once. Talk about the market getting a blind side.


Happy Creek News list

I have followed the progress of HPY for several years and spoke to the company on several occasions. HPY is coming into its own now. They have several properties all of which are getting exciting to watch unfold. David (CEO) has slowly been unlocking the value of the properties step by step. A review of the financials and MD$A reveals a prudent use of the money. Here, I will focus on the tungsten and gold properties but will stray to their other news when it's really important.

I suggest the reader examine the historical holes on the tungsten property. This is really big for Canada.

October 17, 2012 

Happy Creek drills 14.0 metres of 0.65% W03 in 60 metre step-out hole at Fox tungsten property October 11, 2012  Happy Creek trenches 5.0 metres of 0.76% copper, 2.09 g/t gold at Hawk property, B.C. October 03, 2012  Happy Creek drills 11.0 metres of 0.82% W03 at the Fox tungsten property September 18, 2012  Happy Creek drills 17.4 metres of 0.90% W03 near surface at the Fox tungsten property August 21, 2012  Happy Creek begins airborne survey at Silver Dollar gold-silver property August 07, 2012  Happy Creek's West Valley geophysical results reveal prospective targets July 26, 2012  Happy Creek commences drilling on the Fox tungsten property July 16, 2012  Happy Creek begins exploration on Fox tungsten property and appoints Richard Lee as Chief Financial Officer June 18, 2012  Happy Creek's Eye property continues to attract Newmont Mining June 11, 2012  Happy Creek drills 152.5 metres of 0.26% copper, 0.67 g/t rhenium at Rateria, Highland Valley, B.C.

Blackheath updates the presentation

Go to their home page and have a look. Clearly they will be drafting up a drilling plan for the new properties. I can't help but think these guys will go after the next top property before they are done. When you put the top dogs together they each need a bone to chew. I would expect one more old property and perhaps 1 green project. There's still a large chuck of the structure that formed all this mineralization that has not been explored.

Perhaps this weekend you spend more time learning tungsten. If I get time I'll post on the market side of things so people get a better grasp on that aspect. Unlike other major commodities this one can be vertically integrated into the supply stream.

Thursday, October 25, 2012

So What's Blackheath Worth Now?

Assuming they get the next property. Ballparking it using the old data suggests a value of $1.20.
This is what they should currently command on the Venture. I would expect the share price to move up to about half of this over the next month or so. What it will take is a bit of confirmation by drilling and some ground studies. Normally the JB method gives us an acceptable valuation but in the current risk off market we are not seeing it.

(The often recently quoted method of the late Julius Baring for investors to evaluate a company against its current share price was described as: "Buy up to 10% of the in situ value of a deposit using current metal prices, hold up to 40% and sell above 40% taking no prisoners!")

One advantage BHR.V offers is they are going after deposits that they know have value. They've been there and done that. While Happy Creek HPY.V is turning up stunning results (especially for Canada) their deposit is brand new. Because of this people still feel there is a lot of risk. Not so if you study the enviro and drill results. From an investors point of view BHR will get to market much more assuredly and is therefore a bit safer. To me, both are 2-4 year investments with huge payouts. It's going to be tough deciding how to slice up the risk budget to cover these.

I know some of you are thinking you want pop right away. You get a good feeling from that but the real secret to making huge money is getting in on the ground floor and waiting it out. Both of these companies will offer trading opportunities. BHR more so. I intend to use both so that one can come out on top. I take risks in a sector with few players and few investors because it makes things all the more predictable.

Learn about Tungsten

Start here
http://pubs.usgs.gov/pdf/circular/c930-o.pdf

You'll find info like this usefull when you do the comparison between Blackheath BHR.V and Happy Creek HPY.V   These are two of the most important early stage companies in the industry.

Some technical info for the hard core student.
http://webpages.fc.ul.pt/~amateus/Docs/Abstracts/1Borralha1986.pdf

Even more detailed info.
https://www.jstage.jst.go.jp/article/shigenchishitsu1951/35/193/35_193_317/_pdf

Blackheath Panasqueira Purchase

http://www.marketwire.com/press-release/Primary-Metals-Announces-NI-43-101-Resource-Estimates-for-Panasqueira-Tungsten-Mine-601120.htm

2006 NI 43-101
The estimate resulted in total mineral resources of 4,649,000 tonnes containing 1,180,408 MTU's of tungsten trioxide. (One MTU equals 1 metric tonne unit or 10 kilograms of WO3 - tungsten trioxide. The mean quoted European price for tungsten is currently US$255 per MTU of WO3) The total included Proven and Probable Reserves of 1,391,000 tonnes at a grade of 0.233% WO3 (containing 324,408 MTU's of tungsten trioxide) and additional Indicated Resources of 3,258,000 tonnes at a grade of 0.263% WO3 (containing a further 856,000 MTU's of tungsten trioxide). In addition, there were a further 1,610,000 tonnes at a grade of 0.224% WO3 (containing 360,000 MTU's of tungsten trioxide) in the Inferred Resource category.

"At current mining rates, these reserves and indicated resources will be sufficient for the next eight years. We are particularly encouraged that these reserves and indicated resources are located above our existing Levels 2 and 3 and may be readily accessed by lateral mine development. There appears to be no immediate need for early development of the new Level 4 in the mine in order to access inferred resources. Recent exploration and development work has also been very encouraging and indicates the continuation of further mineralization in our mine Level 4, and also in the Panasqueira Deep area, accessible from Level 2, which should add to future resource estimates," commented Lewis Black, Chairman of the Company. "Tests are also underway to examine the possibility of re-treatment of some of our historic tailings material which, if successful, would further add to the long term potential of our operations."

Tungsten.—Production from the Panasqueira tungsten mine was 799 t in concentrate (W content) in 2010 compared with 823 t in 2009, which was a decrease of almost 3%. The Panasqueira Mine was operated by Sojitz and continued to be one of the EU’s leading producers of tungsten concentrates with a capacity to produce 1,400 t/yr of tungsten oxide (WO3) concentrate. According to Sojitz, the mine had proven and probable reserves of 1.4 Mt at a grade of 0.233% WO3, additional indicated resources of 3.3 Mt at a grade of 0.263% WO3, and inferred resources of 1.6 Mt at a grade of 0.224% WO3. The main end-use application for tungsten was in the manufacture of cemented carbides (60%), steel and alloys (21%), electrical and electronics products (11%), and catalysts and pigments (8%) (Direcção Geral de Energia e Geologia, 2011; MBendi Information Services (Pty) Ltd., 2011d).


Wednesday, October 24, 2012

Copper Fox close the last PP

They let this pp run the full length of time and finaly closed it using a little over 1/2 the amount sought. A number of questions arose today surrounding why only 2.5 million dollars. Interesting to say the least. Ernesto could have ponied up the full amount but clearly it wasn't required. That's a hint folks. You see they state what it will be used for. A chunk of it is going to the enviro. What have I been telling people. The enviro just requires the waiting periods and is all but approved. Elmer (CEO) has made sure that all departments have had up to the day info. Nothing in it will be a surprise to anyone. So really, they just have to wait out the comment periods and it's a done deal. This is why they have spent so much time including First Nations.

Something else I want you guys to know. There's a lot of people talking about the Chinese interest in Teck and what that means for Canada. You're hearing an aweful lot about them these days. They buy our coal and bring the miners in and we get zip, zero, nada. Our politicos tell us we don't have the skill and there's a skill shortage in this area. What they are telling us is that we are too stupid to learn coal mining! They say we don't have the technology! Ask our coal miners down east about it. You may have followed this in the Vancouver Sun or other papers and might feel a little indignified about it. The jobs issues reported in the Terrace news paper cronicals Canadian miners being miss treated so as to favour more american workers. (Yes, they are stealing our jobs too. :>).   But have a listen to this: https://www.youtube.com/watch?v=-bmPfqJ0lk8 If you're not familiar with this you might want to google up the WTO papers on this subject. Or, maybe not.

Shocking isn't it? So here we have little Elmer sandwiched between a 20 billion dollar deposit and a chinese influenced Teck. And what can he do? Well, for starters he can weave a deal that sets a number of standards. He can put together the right mix of people to control the project and enshrine environmental standards we can be proud of. He can help make this a more acceptable multinational project. Don't be surprised if all levels of government are happy. I think the industry will get an example that sets the bar high and the public will be happy.

Closing the PP tells us that church and state needed to be seperated. Forward costs need to be seperated from the "applicable" costs. If another PP comes saying they are raising money for Arizona this should not be a surprise.  Should this be true then we can conclude that a deal has been struck. The alternative is that we would have taken the full 4 million and get busy in Arizona.

If I'm right there's a whole lot of people that just missed the boat.

Copper Fox CUU.v Is it buying time?

This might be a bit early to proclaim that everyone should dive in hard. So tenatively, the games we are seeing with the share price will be getting drowned out this week. Now, just to spite me, they may rev up the machine. I have unconfirmed news that news is coming and while it's not the big splash it is a signal that cuu is ready to begin the gauntlet. I hope to get a call into Elmer (CEO) this week to ask about the bigger picture. When your project is this big who are the players with deep enough pockets (currently) and how much investment does he see coming to our continent. We all know how much the gov't says will come to BC but I want to hear his perspective. Has the recent shift in safe zones really impacted the future global thinking or will it pass?

Blackheath BHR.V does it again

Following up on the how to make money article. Blackheath has gone and bought up their old stomping ground.

Blackheath Resources Inc. (TSXV: BHR) is pleased to announce that the Company has entered into a Letter of Intent (the “Agreement”) for an option to acquire up to a 100% interest in the past-producing Borralha Tungsten project. Borralha was Portugal’s second largest tungsten mine (after Panasqueira)

The Panasqueira was operated by Primary Metals before its sale to Sojitz @$3.65. The management of Blackheath is virtually the same team as that of Primary metals.

So they really are staking a major controling position over Portugal's tungsten. This is smart. This will guarantee the governments cooperation. The other thing is that they already know what's there.  

Tuesday, October 23, 2012

Copper Fox

Ask me questions if you like. I'll be providing regular input here.

Recent information suggests they have completed it and are subjecting it to a very tough internal and external review. The extra steps are being done to confirm the robust numbers. We are told to expect it any day. From what I know of the process I would venture to guess it should be out now. But given the history of missed deadlines I automatically add a month to whatever they say. That would put it in the middle of the usa election. Perhaps they will surprise us and deliver it before so that it doesn't get drowned out by the election fervor.

How to make money in mining.

First thing you need to know is that it takes time. To make those huge gains you have to lay the ground work early. Really early. So how long are we talking? 2-4 years is normal. We are not talking about smaller investments here. Bu this I mean your trading money. At a certain point the ability to buy and sell is limited by the stocks ability to absorb that without moving too much in the process. We call this liquidity.

The first thing we need to look at is supply and demand to get an idea of what will be hot. There are a lot of resources out there. Google is a powerfull tool but in many case you have to know what it is you are looking for. That can be problematic if you don't know where to start. There can be a number of other things that can cloud the research too. You also need to have an understanding of technologies as well. The point in case today will be no exception.

Let me build a case here. Tungsten. For years it was the source of fillaments in light bulbs and teeth on saw blades. It was the machinists best friend but it's uses were limited. Being the highest melting temperature metal you can get it was expensive and mostly came from China. So google up some history links and confirm this.

  • Tungsten is a metal with unique properties making it an essential component in many industrial applications. Critical properties include - very high melting point, very high density, hardness close to diamond, thermally and chemically stable, excellent conductor, and environmentally benign.
  • The most important use is as tungsten carbide in hardmetals, used mainly for industrial drilling and cutting tools. Secondary uses are in electronics and specialist steels.
  • China accounts for over 80% of world tungsten mine production; western world supply is very limited.
  • USA, Europe and Japan consume ~55% of world tungsten, but produce only ~5%.
  • Chinese domestic demand has increased, and China has moved from a net exporter to net importer of tungsten concentrates.
  • Tungsten prices have more than doubled since the start of 2010
  • Concerns over security of supply of tungsten concentrates to western processors and industry end-users resulted in the EU categorising tungsten as a "critical raw material".
  • Tungsten demand is forecasted to grow by 5-8% annually between 2012 and 2016.
  • Growth markets for tungsten are still being identified, such as nickel-tungsten alloys that could replace chrome plating and nickel-tungsten alloys that could replace gold-nickel plating.
  • Tungsten, with essential applications in industry, aerospace and military, is a strategic commodity. US, Russia, China and Japan have indicated that they have or intend to build stockpiles.

What is Tungsten?

Tungsten (symbol W) is an extremely hard, heavy, steel-gray metal that is one of the heaviest of all the elements, amazing for its strong physical properties and vast uses. It has the highest melting point of all the non-alloyed metals (3,410°C), the lowest vapor pressure and the highest tensile strength (19.3 gms/cc).

Tungsten does not occur naturally in its pure metallic state; rather, it is found in several ores, including wolframite and scheelite. Most of the world's reserves are in China, which supplies more than 80% of the world's demand. Tungsten is also found in Australia, Bolivia, USA, Russia, Portugal and Korea.

In its purest form it is quite pliant and can easily be processed. With high binding energy, tungsten alloys and some tungsten compounds cannot be substituted in many important applications in different fields of modern technology. 

Here are some quick facts on todays tungsten uses:

Tungsten Uses:

Tungsten is used in diverse applications and industries that range from aerospace and automotive to medical devices and machining and tooling to homeland security and sports and leisure. Its specific applications are almost endless and include weights and counterbalances, rotor blades, guidance platforms, vibration governors, radiation shielding, industrial instrumentation, electrical components, gyro rotors and fly wheels, ordnance components, armor penetrating applications, boring bars, grinding quills, die cast tooling and many others.

As the number of uses climbs the demand grows. Since we are all pretty wary about the global macro environment a natural question to ask is how will this effect tungsten. So the next thing we want to look at is the tungsten market. Start with the base information. http://minerals.usgs.gov/minerals/pubs/commodity/tungsten/mcs-2012-tungs.pdf  You will want unvarnished facts. Later we will dispell some other mythical information so you can see why the stocks introduced later are good bets. While your on this site look here too. http://minerals.usgs.gov/minerals/pubs/commodity/tungsten/mis-201206-tungs.pdf  Have a look at this company's facts. http://www.malaga.ca/malaga/en/tungsten-world-market.php  These guys are part of the history of one of the stocks you'll read about later. For a quick brief on todays market look here.
 http://tungsteninvestingnews.com/2836-tungsten-market-update-september-13-2012.html 

Are you beginning to see a trend? China used it's mineral wealth to get foreign currency for over a decade. They sold everything and that kept markets down. This gave them enorous wealth but it came with a price. Now China is forced to choke of supplies of resources like tungsten and REEs. Don't let the title Rare Earth Element fool you. The REE markets is being filled and the stcks there have dropped from fashion. Tungsten on the other hand is not so readily found. In fact, many old mines are being reopened and exploration is being re done with modern technology. This trend will go one for another decade because like copper, supplies are dwindling and the quality of the deposits is dropping. In today's copper you have to process twice as much rock to get the same supply and this is why large scale porphry deposits are growing. Here's one more reseach article on the supply demand issue. http://www.prnewswire.com/news-releases/tungsten-market-anticipates-new-supply-133426148.html  Since its publication the money only became harder to get and only a handfull of the deposits are even close to producing.

A quick discussion on the field is in order. The Koreans came to Happy Creek to look at David's deposits recently discovered in British Columbia. A deal was not struck and it is believed that the terms were not good enough since David knew there was a lot more to be discovered so he wasn't about to give it away. Korea has a company called Woulfe (WOF.V) who is developing tungsten in Sangdong. Korea and China are at odds over supply. This is why Korea was out thumping the bushes for more supply. China and Japan are clearly not in a cooperative mood over the supply of several critical metals and tungsten is a big one. Google critical metals list. While we are at it, one more site to look at. You'll see that Warren Buffet is buying. You'll also see Happy Creek (HYP.V) is on the list of companies to watch. Later you be introduced to another ground level company with what can only be considered as having a Rock Star team behind it.

Moving on, let's talk about the global marco issues a bit. In all of history things come an go all except for one thing. That is people will be people. We want our life's to remain just the way they are. You hear an aweful lot about fiat currencies failing. Did you know that one of the most enduring forms of portable property was what was known as the Tally Stick? Yup, a stick of wood. Here's a link to give you a quick (sort of quick) look at the history of money. This comment explains a great deal about why we are where we are. See the Readers Comments below the Article:  http://www.testosteronepit.com/home/2012/10/11/fear-mongering-and-hysteria-about-the-fiscal-cliff.html  It is true that there is a war going on. From the comment you can see that is has gone on ever since the invention of money. Recently the Former Chair to the FDIC stated that the only bubble out there is the bond bubble. This is true. Here's a cheeky site with an abundance of opinions that are largely well written and accurate. http://www.zerohedge.com/news/2012-10-13/us-fiscal-moment-cliff-slope-or-wile-e-coyote

Once the reader has done the background checks on fiat currencies they begin to get a feel for what's ahead. While the comment proposed a simple solution we all know things are not that simple when a power group(s) has an agenda. What might emerge is a scientific economy where everything is measured in joules of energy and carbon output. Perhaps a basked of goods will set the bench mark for the value of a country's currency and this will level the field a bit. A lot of people think gold is the solution but they don't realize where the majority of the gold comes from. In this respec, Canada stands out against all others. So it's very unlikely we will get to control the worlds currency values with our output. We could be the OPEC of gold. That would be a nice turn around but it's unlikely. There's a reason The USA helped for OPEC and it was not for the benefit of Americans believe me. But that's another sorid story.  For now, assure yourself that people will continue to be people, they have a very hard time breaking the molds they came from.

With this in hand let's turn to where the hottest bed of tungsten activity will be and the company you should reserch. Blackheath. (BHR.V) Before we get into their activities and holdings a brief discussion on what makes a good company is in order.

I want the bios and About to read like this when I research a company:
holds a B.Sc. in Metallurgy from the University of Nottingham and is a Professional Engineer in the Province of British Columbia. 40 years and founded several companies, two of which graduated to full listings on the London Stock Exchange. owner of Midas Management Inc., founding director and Vancouver manager of Primary Metals Inc. is a self-employed accountant with over 20 years' experience in accounting practice for private and public resource companies. was a director and CFO for Primary Metals Inc. over 35 years of experience in marketing and metal sales with particular experience in tungsten. previously employed by Minorco plc and Waller Metals Inc. as Sales Manager with particular reference to the sale and trading of tungsten concentrates and products. was President and a director of Primary Metals Inc., 30 years of experience in fund and portfolio management. was a Senior Portfolio Manager with CQS Management of London. is a member of the Institute of Chartered Accountants of England and Wales and holds a Bachelor's degree in Geology from the University of Liverpool and a Master's degree in Geochemistry from the University of Oxford. Mr. Roberts currently serves as a director of Agnico-Eagle Mines Ltd., and Eastern Platinum Limited,
actively involved in assisting public and private companies with corporate operations, capital development, corporate communications and regulatory compliance activities for over 20 years.co-founder and principal of Ascenta Finance Corp.
Most important, a proven track record:
Blackheath's management are seeking to repeat similar objectives: Tungsten development in Portugal and to return shareholder value through successful exploration, aaquisition of additional attractive projects as well as M&A activity. Management's previous involvement in Primary Metals grew shareholder value significantly from its IPO at 15 cents in 2003 to an all-cash buyout in less than 5 years at $3.65/share.

Accolades are not enough for me. You have to have been in the winners circle to make me happy. Short of this you have to have an outstanding financial record, an awesome property and be in the right location with the right minerals.

So here is a company with the right management team who is adding to the external resources by bringing in people who are just simply a cut above. Here's the first example of the calibre of people joining the team:
Blackheath is pleased to report that Jonathan Henry has been appointed as a member of the recently-announced Advisory Committee of the Company. Mr. Henry has extensive experience in tungsten exploration and development including the formation of Primary Metals Inc., a company which owned Portugal's Panasqueira Tungsten Mine as well as other global tungsten assets.

Mr. Henry has over 18 years of experience in the international mining industry including responsibility for execution of exploration, development and M & A activities. Mr. Henry was formerly the CEO of London Stock Exchange-listed Avocet Mining PLC from 2006 to 2010 and previously served as Avocet's Finance Director from 2002. During that time, Mr. Henry's responsibilities included assessment of the company's tungsten assets and their spin-off into Primary Metals Inc., a successful Canadian company that was subsequently sold to a Japanese conglomerate in 2007.

Mr. Henry resides in the United Kingdom and currently serves as President and CEO of TSX-listed Gabriel Resources Ltd., which holds a major gold deposit in Europe. Several of Blackheath's directors were previously involved with Primary Metals and the Company is delighted to welcome Mr. Henry to the Advisory Committee. Mr. Henry joins Mr. George Cavey and Mr. Brett Matich whose appointments to the committee were announced on September 25, 2012.
This is what we want to see in a company. As a standard practice the investor should google to see who the directors are connected to and look for failures in the circle. This is a quick way to out any shagy companies from your investment list. Tolerate very few failures. It's also wise to vette those failures to find the specific reasons and to go as var as examening their share price charts for anomalies.

So there you have it, a solid team in the works with guys who have proven it in the past. Since their last success they have been busy examining the prospects and the timing issues. This process took about 4 years. Their star project is the Covas property. Guring this time the team expanded on the historical data, made site visits and examined the core sheds. To our delight the majority of old cores are still there under lock and key. This would allow for reassaying should it be deemed necessary. You will find the complete review here: http://www.blackheathresources.com/s/TechnicalReports.asp  After parsing every line and comparing the information to every source online it became apparent that this claim area has the potential to host 2-3 times the historical resources. In addition, the Dome area has not received modern attention and is known to have gold. Clearly, when you find a rock sample containing 10g of gold you have to look into that. We'll discuss that later.

So what do you do next? You've examined the company, vetted the team and read the technical reports. The next step is to call the company. What follows is the conversation with the Company's chief director who prefers the short name Jim. It's a little less formal and he probably prefers the less portentuous.

Let me start by telling you what my objectives were. First, you should know that this call wasn't about the geology. That will come after the first set of assays so we have something to talk about. That does mean a second call will be made. Now, some people are reluctant to call a company and in many cases it's because they don't know what to ask. I suggest you start by opening the presentation material of a company and tell the person you're talking to to guide you throught it. This is the first test of a company. They should be able to explain it to a house plant. Any company that can't do that is not worth investing in.

So what does the investor want to know?  Below are some of the questions that arose from the examination of the company's documentation.

Q. What were they doing after their last success?
Q. Obviously knew about this deposit.
Q. Knows the area very well.
Q. Drawing gold comparison to Tintinia (Yukon). Is there enough evidence to support that.
10g of gold in sample had to come from somewhere.
Q. Why was the skarn ring ingnored? Was it though to be well understood?
(Note, it was the Dome that didn't get a proper examination. They will correct the document.)
Q. A big part of Midday Mnt is not covered by the Covas permit. Who owns it/try get it?
Q. Why is this deposit now a going concern?
Q. Colt Resources seems to be moving swiftly in the last year.
Since 2007 interest has revived. Will Blackheath move quickly?
Q. What kind of timeline do you expect given the markets today and the historical and recent work on the claim area?
Q. Make a compliant resource and then?
Q. Do you take it to production?
Q. Who is buying W (tungsten is W on the elements table) deposits?
Q. Explain the buyers market?
Q. What are the current conditions for the country? Inflation, labour supply, general sentiment?
(Note, he just returned so we can get a real answer and not what the media wants us to think.)
Q. Why won't China just open the flood gates again?
Q. What about other deposits like Happy Creek and Woulfe Mining?
Q. What's their edge in completing the requirements and getting this to market?
Q. What about money? Can this company raise money without excessive dilution?

After the introductions we got right down to business. Jim asked what I knew about the company and the project so I cited a few details that only the very well studied would pick up on. That way he knew what level of discussion would be appropriate. We started off discussing the people and thier past successes. This led us to the formation of the current company. As written above, this is shaping up to be a top notch team of people. I had looked at the budget for the year so I knew something was not quite right here. I ask myself why so little and why such a power team for what I'd consider a smaller project. The budget is very small and very tight but you have to submit a plan if you want to get listed. They went for the fastest track to get listed. Now this is a minor point but it let me ask what the real plans are for developing the property. I can state for a fact that they will be rising more money and submitting a bigger plan very soon.

The next thing we discussed was why bring a bazooka to kill a fly. I had a hunch they were up to something bigger and as it turns out, that's exactly what they are thinking. This project is a stepping stone, a foot hold as it were into the Portugal mining scene. They are indeed looking for more properties. I did bring up other companies and asked for opinions. I wanted to know how well connected these guys are. We'll get into this later. So the plan is to bring this project to a head as fast as possible. All the work behind the scenes over the past few years is now going to pay off. With a team like this the company can be frugal while delivering results. They even have consulting peers who are not being kept in lavish style just to save a few bucks. The site does have lodgings and this serves as a cost savings. Given the climate a roof is about all you need. This is one of the big benefits, you can work all year round except xmass of course. The terrain is a lot easier to work with the few exceptions of some steep ground where low mountains protrude from the landscape. Unlike the Yukon or the coastal regions of British Columbia where you're lucky to get 4-6 months of work done before you get buried in snow.

I won't have time to finish this as the company is moving faster than I can edit. They just bought more land and we are expecting even more news shortly. I'll update this when I can.

Cheers for now.