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Hi Rich. Just packing up here at the PDAC and getting ready to fly home. Very good few days. 22,000 attendees and much optimism about the price of gold. I have also confirmed that Geologists are indeed the only alcohol based life form.
As to your query "why would SUGO go through the time and expense to conduct this report when it isn't required to, since it is now a US company with US claims?" You nailed the reason. Most mineral exploration companies are listed on the TSX and most financial houses and their investors look at the 43-101s. It gives confidence that an independent 3ed party has looked over the data, verified it, and collected samples to confirm the reported results. My guess is that they do not want to start the fund raising for the big bucks until they have the report to show their investors. Would anyone want to drop a few Mill on something that has not been verified. They may even have investment banks that are telling them that the money is there once the report is completed. I just closed on $2M and the markets are loosening up. Money was impossible to find 6 months ago but is starting to trickle in. I was talking to Nova Gold yesterday and they had $150M pledged in 48 hours. Good company with lots of ounces, and very good management. So my best guess is that you are correct in your thinking. They may be able to raise a few hundred thousand without the report but it will probably be the same amount of work as raising $5 million with the report. Heck I had a Swiss investor come by my company booth today and want $500,000 of my offering, buy my book was full. It is hard to turn away money, but I would rather sell at a higher price so sell a little now and a lot later at 5x the price.
Hey Oil I can only give an opinion on the permitting and provide some underlying facts, and I think I should say here that my posts are my opinion and that I am not promoting that anyone buy any stock. I still do not have a good look into the management of SUGO and have tried to investigate them through our friend - GOOGLE. With that all said they have progressed as I would have recommended if I were involved. With that said I would expect that they move the permitting forward in parallel with the 43-101 report writing. I do not have a feel for a time line other than what I was told when I looked at the property over a year ago in my meeting with the BLM. They want help from the company making the application in re-writing the opinion in which they found there was no reason not to issue their permit. Yes they did come to that conclusion in their review, but felt they needed to expand the opinion to address comments which they received from environmental groups. Going off that information I would say that the permits could be in hand in 6-8 weeks. Anyone can call the BLM office and ask questions about the permits, the process, and ask to be on a notification list. They do work for you after all.
Rich I must agree. There are times when one must succumb to pleasures.
http://www.pravdavodkabar.ca/
Hey Rob. I have not seen SUGO on the exhibitors list. I know the spaces fill fast and usually a company needs to book a year in advance.
Sarissa Resources Inc. looks interesting to me, but I have not looked at the share structure. I see they have a 43-101 but I have not reviewed. Just a heads up on Niobium, Brazil produces ~90% of the world supply. I think there are 2 or 3 companies there that produce the bulk of it. They have a cartel and can control the price. I know that there is a Niobium mine in Quebec run by IAMGOLD and they ran at much lower grades than the Brazilian deposits.
http://www.iamgold.com/English/Operations/Operating-Mines/Niobec-Niobium-Mine/default.aspx
They always worried that the Brazilian cartel would lower prices and put them out of business. They were kind of like that fly buzzing around waiting to get swatted. This was ~12 years ago and the last time I looked at Niobium. Just another thing to consider in your DD. Look at the grade comparisons and deposit size to get a feel as to where Sarissa stacks up.
Than compare to Brazil
Brazil produced 25,000 t of niobium in 2003 compared to 24,174 t in 2002. CBMM (Companhia Brasileira de Maetalurgia e Mineracao) is the world's largest producer of niobium. The company has mining and processing facilities at Araxa in Minas Gerais State. Araxa has a capacity to produce 84 000t of niobium concentrate per year. CBMM is a totally integrated company including mining and beneficiating and produces a variety of niobium products. CBMM is 55% owned by Brazils Moreira Salles family and 44.82% by Molycorp of the USA. The mine produced 23 300t ferroniobium in 2000 equating to 39 600 t of niobium concentrates. Araxa has a resource of 465 Mt grading 2.5% NbO, making it the world's largest known niobium deposit. Brazil contains 80% of the world's known Niobium reserves of which CBMM provides 70%.
that will provide you with a feel of things to look at. Unlike gold a company can decide to sell niobium at what ever price it wants so when you produce most o the Ni in the world you control the game.
URANIUM STAR CORP don't know anything about.....
My travels have allowed me to cross paths with Randy. I have seen his work on some projects that I became involved with and have even had a few beers with him at the Great Basin Brewery in Sparks, Nevada where I enjoyed an Ichthyosaur IPA. The Brewery was started by geologists some 15-20 years ago. Oh just in case you did not know the Ichthyosaur is the Nevada State Dinosaur.
http://www.greatbasinbrewingco.com/
But I digress. From what I have seen and heard Mr. Moore is the type of person you want working for your company. Not sure how they latched onto him, but it was a good move by SUGO.
Thanks Berry. Good to be back. Off to Toronto Tomorrow for the PDAC- Prospectors and Developers Association of Canada annual get together. The biggest meeting of the year for the mining industry and most professionals will be there. Thousands of companies will have booths set up showing their information, many presentations and technical talks. I am very excited, but how could you not be with all that to look forward to. Also one of my favorite bars-Pravda, a vodka bar with beautiful women everywhere. OK I have a weakness other than rocks. Now is it Vodka or beautiful women....
Good Day to all. Just back from Panama. Very cool country. Loved the outback there, great people and great rocks, interesting gold plays. Panama City was my vision of life in an ant hill. People everywhere going full speed in every direction in what appears to be complete chaos, but it all works.
Seems like SUGO has another move forward. They were very accurate in the "43-101 style" wording. 43-101 is a Canadian exchange requirement for a standard of reporting and disclosure. It insures that information is verified by an independent 3ed party who is designated as a "Qualified Person" under the definitions of the NI (National Instrument) 43-101. A 43-101 report is only required on an annual basis and only when there is new information on a project that could significantly impact the company or on properties on which a company spends a certain percentage (don't recall what %) of their budget. So with that all said, SUGO is not a Canadian listed company, they have no new information on the project that would impact the company, and they have not spent any money exploring the property yet. BUT 43-101 reports are the standard of the industry and many financial institutions want to see reports with this kind of detail and investigation. Since there is a great deal of information on Conglomerate Mesa it is possible to compile a 43-101 style report. I have attached a link as to what these reports require. I have done several and believe me they are a pain in the butt to get through. The Geologist will need to visit the property and conduct his own sampling and confirm results in the old reports. These reports take time to get through, generally 4 to 8 weeks. So there you go more than you ever wanted to know about 43-101's.
http://www.cim.org/committees/NI_43-101_Dec_30.pdf
Long2Retire - like the handle
I assume that the No longer active comment is because the permit has been put on hold since Timberline pulled out. Timberline wanted to stick around and put some holes into this system but wanted the owners to defer payments until the permits were in hand. The owners declined and Timberline walked. Once that happened the permitting was put on hold. The permits are still active in the BLM register - I just checked - but the Enviro's figure that the thing is done and gone. I would be very happy if they did not come back in the process and it may be that they will not see SUGO start up the process again. I am not sure how that will work as it is something I have not seen before. But the Enviro groups and on standing notice to all permit applications that come into the BLM. They see an application they don't like, they attack. But since this is an active permit application it may be that a new notice will not go out. The comment period is done and gone and the BLM just needs to rewrite the opinion. The person I talked to at the BLM said that they would look to the company to supply help in this rewrite so SUGO will need to hire the right specialist. So it just might happen that this slides past the Enviro watch so long as SUGO does not change the permit in any way. It calls for opening an old road and drilling 7 holes. The sad thing is this road was put in before and reclaimed. It would only be putting back what was once there. Once the road is reestablished additional permitting for holes should be much simpler.
Hey it is all good. Just here for the same reasons as the rest...
Mo Money... and appreciate my new friends.
I will continue to offer thoughts and insight and please know I have thick skin from years wandering through the desert and am not offended by comments. We all look at things from different perspectives, that is part of the value of a board like this. You may think of something I did not and that is value to me.
Hey Ex Blockman I live among the trees in the NW... lol. Yes it is true, but I think that they can be harvested in ways that help the forest and give people jobs. I also agree that if you are a true environmentalist you would want the mining to take place in the US since we have the strictest laws in the world. If you push the mining out of country than you will have greater potential for problems in unregulated countries. There is nothing in our lives that is not connected to mined materials in some way or another. I have been in the business for several decades and the industry does care about doing things right and takes pride in what it does.
The site is not environmentally special and most of Inyo county has been taken away and placed in untouchable lands. The county is in bad shape with no revenues and limited ability to create new industry. The county wants to see CM move forward and that could be the biggest help in getting this done.
Morning berrybck. In general stock evaluation for mining companies with proven ounces in the ground is $50.00/ounce up to 500,000 ounces and +$100/ounce going up from there. So 2 million ounces would give a company evaluation of +$200 Million. As for mining - the cost to produce an ounce will depend on may things but figure that it will be below $500/ounce and above $300/ounce. If you had 1 million ounces right now and put it into production you would make (worst case) ~$600/ounce or $600,000,000. With a junior company many times the business plan is to find something of size and hope that a Newmont or Barrick Gold takes you over paying a premium and resulting in a great payday for the share holders. If they find a "Carlin" type deposit it could be +5 Million ounces. There is a shot at a large copper deposit on the claims and that would dwarf a gold deposit. Time will tell and many drill holes. I do like the 2 year plan they outlined. If they are aggressive than they will have a good idea just how big this could be.
Just getting going on the west coast here. hermon munster just some clarification on the permits. They come from the Feds not local government. If it was through the local than you would be right they want to see something happen in the county. But the Feds are a different beast. My guess is that Sugo has done its homework and their PR states the second quarter 2010 which I think is right on. Make no mistake they will have a battle to get the permits because of enviros. The only reason the permits were not issued was an organized campaign against the permits. The BLM decided that they had to respond to very stupid comments and that is where it stopped. In my talk with the BLM they said there was no reason not to issue the permits. They felt they had to rewrite the opinion to respond to the environmentalist comments that the permit approval/evaluation must look at the impacts of mining and processing at the site even though the application is for a road and 7 drill holes. Here is what they will be fighting.
http://salsa.democracyinaction.org/o/676/campaign.jsp?campaign_KEY=25968&t=
Which translates to it taking time to get the permits, but they will come, just understand it will take some time.
GOLD CLOSES OVER $1,000 TODAY.
retireearly I did see the news. 2 more steps to go and look out. Next is getting a team together followed by a second fund raising. They do seem to be putting check marks next to each task "to be completed". It will be important to get the right person in to run the geology side of things. A good "gray beard" that has some miles under the belt and knows how to get things done.
The California does exist and is a good one, but they have not closed the deal yet. They may have the cash to complete it but the problem may be in the halt trading that the BCSC has on the shares. SUGO needs to transfer shares along with cash to the property owners and if they can not get around the BCSC they could be dead in the water. There must be something holding them back from finalizing this deal immediately. I see no advantage for them to wait and in 12 days the deal would seem to go away from the last Press release. If they close on Conglomerate Mesa they will have something of value.
Very strange that the press release does not mention paying the owners, just issuing shares. Seems like a big omission.
Who R U ctay? You do not post here... Perhaps insider trying to keep price up to cash in as the rest get Screwed.....
Wording is interesting - from the last press release;
"This announcement does not suggest that we have officially closed on the CM transaction but have set aside in escrow the funds needed."
Seems like they are telling us they have the money, but are not closing on the property. WHY?? Who is selling these cheep shares? Could it be SUGO insiders? Keep telling us that SUGO is closing on a good property and sell shares into the market. The investors here would look foolish and we would be played. Why haven't they closed if they have the funds? By their earlier press release
"the Owners agreed to extend the closing date of the Mineral Agreement to September 30, 2009."
This indicates that the owners of the claims have extend the closing again (past Sept. 2009). It would seem that if SUGO announced that it would close by the end of January than the owners extended to that date. So if there is no announcement tomorrow of closing or an extension...... we are all screwed.....
My $0.02
If the deal is done it must be announced. I believe there is a 24 hour window where material news must be announced by a public company. If there is no press release there is no deal. This price will keep falling if we hit the end of the month and nothing is done since SUGO said that was the target to have the agreement signed.
This is what I have been waiting to see. Things get more real here. Just like I was outlining. First a PR on $$ before anything can be done. Check 1....
Sorry just trying to get answers rather than drink the Kook Aid. As I have said before it is a good property but I am just trying to see how SUGO pulls off the deal. As a public company they have reporting requirements and if they are raising $$ it should be reported. I hope they do pull it off and I hope to profit from it.
no but the company has $2k so that is my point. Why aren't they announcing a fund raising??? They can not close the deal as of today. There is NO MONEY.
No if you read the agreement they must pay the owners $200k on closing and do $100k of work the first year. The $200k is real and required to complete the deal. My point to the "closing in January" is that SUGO has no money. If they are going to pay $200k in the next 10 days they should be announcing a financing closing. No word on that which is why one must wonder how this will happen in January. Just my $0.02.....
Maico; I am not trying to impose any time frame. Agreements are written with deadlines to preform. I do not think the underlying claim owners will wait forever to receive $200k. They will void the deal and shop it to another company at some point if it drifts past the deadlines.
Thank you for proving my point.
How many times do we see this....
According to last PR - Mesa closing and website up.
It is not hard to put up a website and the closing never seems to happen. There has to be a PR on fund raising before anything else happens. I am sure there is a time limit on when they must complete the Mesa agreement and I would guess that clock is about to expire.
I hope they pull it off but just posting happy faces here offers nothing of substance to understanding this company with no assets.
I hope they pull it off but "tick-tock" baby.
Another week and no news....???
I think their chances of closing this deal are slipping with every day that ticks by.
Why would they complete a 43-101. That is a Canadian exchange requirement. National Instrument 43-101 for disclosure of information and verification by an independent 3ed party. They need to complete the acquisition of the property before anything will happen.
Thanks Richagain
I am just here for the same reasons as those that want to flip some shares and make some $$$. I think I can provide some industry perspective as I have worked in the industry for over 35 years. I have worked with majors most of my career and have been in the jr sector for the past 7 years. I just am hear to find out info and if I can add to the collective intel than I am happy. I thank you for the post and welcome any help we can provide each other..... It is about the $$$$ at the end of the day. That is why I am here....... Some other stocks to consider are
South American Silver Corp. (SAC-T)
ATAC Resources Ltd. (ATC-V)
Evolving Gold Corp. (EVG-V)
Buffalo Gold Ltd. (BUF-V)
Underworld Resources Inc. (UW-V)
Fronteer Development Group Inc. (FRG-T)
AuEx Ventures, Inc. (XAU-T)
Great Basin Gold Ltd. (GBG-T)
Romarco Minerals Inc. (R-V)
International Tower Hill Mines Ltd. (ITH-T)
Please do your own DD....
I have been in all and wait break out to the 10x..... That is what I look for. Some have been good and still have Huge upside. Look for the ounces in the ground and if Majors will scoop up. The majors can't replace their ounces as fast as they mine so they are looking for REAL ounces in the ground. If the OZ are there the Newmonts will be there to offer well over trading price.
Thanks Walker for the links and help.
I am well versed on the property as I have spent time on the ground and conducted a detailed analysis of all of the data generated by Newmont and BHP. I have worked on Carlin deposits and this is an example of those types of systems. There has been problems getting permits to open roads into the property from the BLM and that is why Timberline walked. Since then the talk of this area going back into wilderness designation has ended and the permits should be obtainable. I have met with the BLM and have copies of their Record of Decision approving the Plan of Operations. Enviros have attacked the decision and the BLM wants to update the approval to address the Enviros concerns. They feel that there is no reason that those approvals will not be given but this area has been targeted by several environmental groups so it will take some time and $$. The property does have the 'Potential" to contain several million ounces of gold but it is a long way to go to prove it and it will cost ~$10 million to get there if everything goes well. They will need a good group to move this forward and that will be important for SUGO. Once they finalize the agreement and get the permits for the roads and first drilling than they will be well on the way with lots of positive news to be had just following up the old drilling. I am very curious to see how it unfolds. SUGO is very difficult to get any real info on and that may just be because they are reforming and have not completed the re-tooling of the company. I am curious as to their finances. They need $200,000 to complete the deal plus an investment in the property of another $100,000 in the first year. They have to be raising $$ somewhere, but I see no announcements on that, so if they are closing this month it must be some private placement $$ which probably translates to shares and options/warrants to some big time investors. I would think there would be an announcement on the funds being raised prior to the closing of the deal, but I am not as well versed in the US stock regs as I am for the Canadian exchanges.
Here is some of the problems to overcome.
http://salsa.democracyinaction.org/o/676/campaign.jsp?campaign_KEY=25968&t=
I came to SUGO because of Conglomerate Mesa. I evaluated the property for another mining company and was impressed with the potential and the size of the mineral system. The group I represented passed on the property due to financial reasons but I remained interested. I found that SUGO picked up the property and doing Google searches on Sungro I found this site. I follow the jr mining sector extensively and have many investments that have done well. I invest in companies with great properties that will interest major mining companies and will lead to take overs. A good example of what I look for is International Tower Hills Mines. Bought in at 0.90 now 8.05 and I expect will be in the $15 range before it is finished. Stocks I follow are all on the Canadian exchanges so this SUGO is different for me and data is harder to find. But they fit what I am looking for if they close on Conglomerate Mesa. I am just looking for more info. They seem to have a bit of a sketchy past and I am not sure if the BCSC has extended the halt trading on them or not and if so how it impacts the company since they moved out of Vancouver. My concern would be liquidity of stock. If it only has very thin trading it may not fit what I do. If SUGO has has the problems resolved than they could fit what I am looking for in a jr company with the potential to increase 10x. So I am here for info, but most posters here don't offer much other than smiley faces it seems. So that is why I pose some questions. Seeing if someone does have some of the gaps in the info. I would be interested in who is on the SUGO Board as well.
Hey just stumbled in here while looking into SUGO. I looked at Conglomerate Ridge when many companies were reviewing the data. I followed up as I like the property and think it could be a huge winner. When I saw that SUGO had an option I started looking into them as a good investment and still think they are if they close this deal. If it goes through there will be a long stream of good news and get industry attention. I just wonder if they are doing a financing - which has no announcement, or if they have some private placement cash in or coming in. This could be one hot stock if so...
How are they going to close on a property whey they have no $$. I see reports that to close they need some big bucks. They have no other properties as far as I can tell. If they were to pull off the Conglomerate Mesa it would be huge as I have researched it and it is a very high quality gold play, but SUCO is broke. So I remain confused.
News coming... I just keep seeing this and nothing seems to ever come along that has any substance. Just office moved... Do these guys do anything?