I just met with the CEO and he explained to me that the surface and channel samples that were taken during Q4 2010 are positive and consistent with all prior samples. This is great news because there are well over 1000 samples now that have proven positive that Tumipampa is sitting on something big. This information will be disclosed in a news release very soon.
I also asked him about Tumipampa and why everyone is so excited about the property. Boy did he light up...body language and facial expressions tell a 1000 words alone, not including that he told me they have been exploring the property since 2000. Most people do not realize there is over 10 years of exploration on the property already. They have drilled the property and found a lot of rich gold veins, and more recently discovered the highly mineralized scarn, which is 4.2kmX1.2 kms. From the geologist eyes, it's like the perfect storm or all the stars have aligned.
The drills are turning on the scarn and there is a big push to get results published asap. The current drilling campaign will unveil the full potential of the scarn within the next 8 months.
If the first drill results are positive DNG will add subsequent drills to speed up the campaign.
One thing Mr Martineau pointed out, which sticks in my head and brings me great comfort this stock will hold it value, is their custom milling operation business model at Acari is a fully operational business on its own. It does not matter if they have any properties to explore! This mill is penned out to bring in over 9 million dollars gross cash margin in 2011. You work with these numbers and you will find that at the current share price the company is still very undervalued.
Hr Martineau explained that high grad viens that already have been discovered at Tumipampa could be used for their owm mine prouction, thus increasing profit margins considerably. A new mill like Acari would have to be built at Tumipampa for this.
He mentioned they are adding another cyanidation tank to the mill at Acari, which will advance the tpd from 165 to 180. This means more cash in the bank to continue the already enormous drilling/exploration campaign and give further support to the stock price and company value.
Mr. Martineau has been with the company since 1996. He is sincerely passionate and knowledgeable about the company and I can confidently say he has the shareholders best interest in mind.
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