After further researching this topic, it appears that there was a failure to mention a few key aspects concerning TUMI, Cinco Minas and why their decision to move on. Please remember and be aware that in any business or project- it's unique to that one company and decisions are made accordingly based on their unique situation. Which was explained in their PR.
• I do recall when the tumi report was first mentioned (copied, cut and pasted) - at first, the date of the report was left out or failed to be mentioned. In other words, for anyone viewing (like potential new investors) or even current ones, we were led to believe the report was relevant to today or done very recently. But, after finding out the date (that was left out) of the report- it was realized that the price of Gold was 2.5-4x's less than today's price when Tumi was there! However now, it appears we are misleadingly being told that the huge difference in the price of gold compared to today and 6-8 years ago isn't significant or doesn't matter. This is not even including Silver either.
• After researching TUMI and the PR released when they decided to move on. There's one very important part of it that failed to be mentioned which could be a little misleading to readers here:
In summary, a combination of a very high strip ratio
for an open pit, underground open stopes, and an option to earn only a 60%
interest with high underlying holdings costs, make the Cinco Minas property
unattractive to the Company from an economic prospective. To meet the
Company's exploration goals, a project must also be able to reach "advanced
project status" quickly and cost effectively.
What caught my attention first was that all this was based on 60% interest, not 100%. Also, they mention that they couldn't meet the advanced project status quickly. In other words, they couldn't reach the timeframe as quickly as they wanted to be cost effective FOR THEM, not necessarily others. (Obviously, BGL seemed to think this property a great match for them considering the fit they are throwing today, lol)
And yes, I do believe TUMI did not know where the price of gold was headed when they made this decision. in 2004-2006, the economy was doing very well and not yet signs of the dollar collapsing nor the idea of Gold shooting up to today's price of 1700. Also, let's not forget the increasing demand and value of Silver. The reason they shut it down was because of multiple variables, 2 of which you didn't mention which includes the 60% interest (not 100%), and that they couldn't reach advanced project status in the timeframe they needed. Also, to suggest a company's decision back in 2006 (based on the variables then) is in any way relevant to today (especially considering the drastic gold price shift) makes no sense. So please, when using that report, make sure to include the date of it so that nobody here is confused or possibly mislead.
• Let's not forget SRGE now owns 6 mines today which are strategically located in regions that are perfect for a buyout. Just the land alone and it's location is more valuable than many may realize.
• Let's not forget that Alfonso Sanchez Navarro is on the BOD. His uncle is a powerful Mexican politician with connections to mining companies.
• Let's not forget that the Smid headache is/has been gone for 6 years and has absolutely nothing to do with SRGE except that there's an Ethanol Business that they are working on divesting. I'm sure Smid did leave a mess and that mess is his, not SRGE and they are not responsible for what he did.
• Let's not forget the extensive research done here proving that there's at least 200m shares shorted on SRGE. It's obvious SRGE is gaining a lot of attention and measures are being taken in every shape and form.
• Let's not forget that BGL wants Cinco Minas badly! They've made that very very clear and done everything to say it's theirs. So, it's very very suspicious and odd that BGL would want Cinco Minas if it's worthless and not cost effective. Makes no sense to me. If it's worthless, non productive, non cost effective and every other negative thing it's been made out to be- then BGL should just move on and forget about it like it's a bad ex wife.
