The hypocrisy of shareholders knows no bounds. The number of people here banging on about how good mining is for Ecuador is laughable. There's really only one reason a shareholder like that cares, and it's certainly not the welfare of the Ecuadorian country or people.
I neither agree nor disagree with the Vice president since I have no economic interest in INV. I would however suggest that the current market cap of INV means no one is sure if what he said carries weight or not. All politics is local over there, and it's hard to take the word of a government whose approval rating is in the single digits seriously.
What do you think are NM's possible strategies (presumably for retaining unchecked power)? This is what I would like to use a forum for.
Are you aware of the local opposition issues surrounding the Loma Larga property, and the vote on Feb 7 (same day as Ecuador general election) that will determine whether mining will be banned in the Cuenca province? That's where the Loma Larga property is located. Hopefully your level of research into Solgold is more thorough because what is passed off as good research on forums is nothing more than group think and the search for the emotional comfort that comes from knowing other people feel the same way. That Solgold should bid for a company that could be worth nothing in 6 weeks is ridiculous. It's priced at £30-40m and only good for a gamble unless you have specific knowledge as to the outcome of the vote. Gamble being the operative word.
They cannot act in concert to simply buy up to 51% of the shares on issue without making an offer to all shareholders. They can however creep their way there over time if NM is unable to fend them off. Robert Friedland was fighting the exact same battle in 2011/2012 that NM now is, to extract maximum value from a sale of Ivanhoe Resources or its share in Oyu Tolgoi and look how that turned out.
In fact, just take a look at Turquiose Hill Resources share price since then and how much trouble Rio is having with Oyu Tolgoi before so casually going 'we're definitely going to sell for top dollar' or 'we're going to production' because one has to be incredibly stupid to assume those are the only outcomes possible because incredibly bad ones are possible as well.
I don't need the company to be taken out for top dollar, I just want decent coin for it so that the risk of further exploration, development etc can pass on to somebody else.
I do not, and will never doubt NM's commitment to loyal shareholders, especially small ones but remember that whatever happens from here, NM is going to come out well ahead, and likely to make a comeback like the kind Robert Friedland has in the DRC. Can you say the same for yourself?
Find out what Turquoise Hill Resources used to be called before it got renamed. Check out the share price of Turquiose Hill Resources since expectations of a takeover by Rio were sky high in 2010/2011 and where it has gone since. Tell me that was a happy outcome for shareholders? It was not for lack of trying by that a big personality to keep Rio at bay with standstill agreements, poison pills etc. I want a good outcome for Solgold of course, I am very heavily invested but you’d be a fool for thinking it’s in the bag. I’m a huge NM supporter, and have been for a long time, can’t help being worried now that the stakes are so high for everyone. Predators are certainly not going to act in the interests of shareholders, and I appreciate NM’s efforts to protect us from a cheap takeover, but the risks are huge.
Speaking with Mining Journal at Diggers & Dealers at Kalgoorlie, Western Australia, SolGold CEO Nick Mather said the company was waiting on permits to start drilling at Blanca, where rock chip sampling in and around about 120 artisanal workings concentrated in a 400m-by-200m area on the Cielito Vein has reportedly shown "bonanza style epithermal gold mineralisation" with copper.
He couldn't put a schedule on the drilling at this stage, but said he was itching to get rigs active at Blanca, about 5km north of the Alpala deposit at Cascabel, and at the Porvenir porphyry copper-gold target in Ecuador's south.
"Having over the last four years developed a blueprint for the discovery recognition of the zonations and mineralising patterns at Alpala, and a blueprint for efficient appraisal of them, for which our exploration team has been gonged a few times, we can now apply that blueprint to these other targets in Ecuador, and Porvenir is the best looking of the lot of them," Mather said.
"Porvenir outcrops over a much, much bigger area than Alpala. So it's way better exposed - the drilling targets are sticking out of the ground. You can see them very easily.
"We've selected our drilling locations and started drill pad construction.
"I can't be specific about a start date but it is getting closer and closer."
Neither Blanca nor Porvenir have been previously drilled.
London-listed SolGold (SOLG) reported this week its structural mapping at Blanca confirmed "potential for multiple stacked flat-lying high-grade epithermal veins" from at least 118 artisanal mining tunnels in the 400m-by-200m Cielito area. It had also retrieved bonanza-grade gold rock chip samples from a "newly identified area of shallow artisanal workings … on the opposite ridge to the Cielito Vein", about 380m to the south-east, which was "thought to be part of the same system".
Mather said SolGold, Ecuador's biggest active mineral explorer with more than a dozen rigs currently turning at Cascabel sites, was selecting drill sites at Blanca.
"The thing that attracts us to it geologically is the underground artisanal mine workings that have been mapped on very high-grade epithermal gold veins that go up to over 600gpt. They're generally anywhere between 10cm and 2m wide with variable grades, but we do have a 200m-by-400m wide zone of concentrated artisanal workings on these veins.
"And inside that area we can see potential for a multi-million-ounce, very high-grade gold resource.
"That is just the sort of thing that is highly financeable, easily mineable, with gold easily recoverable, that could provide a huge boost to the first phase of SolGold's share of development costs at Cascabel.
"We're looking at Blanca very much as something that can bootstrap SolGold into covering costs of development at Cascabel for very low relative capital costs. Layer that over the already outstanding economics that we can see for Cascabel and there might not be an ultimate requirement for very much external funding at all to turn SolGold from explorer to producer.
"If we were to find anything that's mineable there we would have to integrate it into the Cascabel project and there'd be a number of discussions and studies we'd have to do to be able to do that.
"Grade is king in this business, and when you've got something like Blanca that has got some extraordinarily high gold grades on it only 8km from your main project, that itself has a less than four-year payback, 27% IRR and $4 billion NPV, for only $2.4-2.8 billion [upfront development] capital, then something like Blanca can conceivably provide a substantial amount of that capital requirement to get Cascabel going.
"So Blanca shapes as an early stage financing tool."
Mather said 100%-owned Porvenir had also yielded strong results from rock saw sampling along a zone of outcropping quartz veins, chalcopyrite, bornite and magnetite mineralised rock displaying similar characteristics to Alpala, but over a "much, much bigger outcrop" area along a creek called Cacharposa.
"The outcrop at Alpala was only 50m long in the Alpala Creek," Mather said.
"That's why we put the first drill hole there, and that was literally the tip of an iceberg."
At Porvenir SolGold had taken hand samples from rock saw channels in a continuous trench along the main identified outcrop over 114m, and Mather said there are "a number of [other] outcrops that extend over a zone in excess of 1km long and 800m wide".
"I can't tell you whether they all join up or not, but it is part of one whole mineralising system.
"We're itching to get drill rigs on to this because we can see the thing - the mineralisation over three dimensions - and it's very exciting from that point of view.
"We believe that Porvenir will be the second of SolGold's porphyry discoveries. It's bigger, it looks richer, it's 100% owned and I believe we will be able to get onto it rapidly and much more quickly bring it up to the same level as Alpala is now.
"So we'll be starting to put meat on our claims that we have a pipeline that we can rapidly explore, appraise and get to development stages.
"When they're gold-rich, and have economics like Alpala, each successive one that we get to develop and get capital payback on simply doubles, triples, quadruples the amount of net free cash that we're going to bank every year. That will put SolGold, sometime in the next 5-15 years, into the ranks of being a global copper-gold producer, and a major."
That’s how corporate stoushes go, they get ugly. NM has control, of course WI has to fight dirty and public. WI’s ego isn’t so big though that he would cut off his nose to spite his face from an investment perspective. People who take that kind of emotion into investing, and a lot of people do, could not possibly enjoy the kind of sustained success he has had. He just wants his idea of the best possible outcome for his investment, and if it involves eating humble pie, I’m sure he’ll do it.
I am a big NM supporter, but unlike a lot of people here, I consider my Solg investment very far from risk-free (yes, that’s exactly how somebody described it here) and would actually be quite happy to pass that risk to someone else in exchange for a lower premium.
He was the hottest thing here when people first heard he was in solgold. So was the angry geologist when he was saying nothing but nice things about Cascabel. A lot of people cannot tolerate contrary opinions in investing because it is psychologically very uncomfortable. Which is ironic because contrary opinions is what everyone should be looking out for. What exactly is Warren Irwin’s problem with NM? And why do those of you on NM’s side disagree?