Fool's Gold

[Huggy Bear]

That worked out real well.

[Huggy Bear]

NBRI. You pretty much nailed that one long ago jstorm.

[mr40]

Good article. One of the things investors neglect to consider when buying into a mining company is the time and cost of permits. Here is a list of permits for a mining company in Arizona. The estimated times for permitting and the costs/fees are grossly underestimated. An MPO from BLM can take 2 years and cost hundreds of thousands of dollars. Even most legit junior miners run out of funds before they get all their permits.

Korn Kob Mine Project Permit Matrix						 
  						 
 ITEM #	Type of Permit	Agency	Project Trigger	Comment	Timeline	Fee 
 FEDERAL						 
 F1	Plan of Operation (PoO)	US Forest Service (USFS)	Mining Activity	Required Permit	12 months	$0  
 F2	Magazine Construction Permit	Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF)	Storing of explosives on site for blasting	To be determined	6 months	$0  
 F3	Miner Registration Number	Mine Safety & Health Administration (MSHA)	All mining facilities	Required Permit	3 months	$0  
 F4	Section 404 Permit (certified by ADEQ under Section 401)	U.S. Army Corps of Engineers	Discharge of dredge or fill material into waters of the U.S.	Required Permit	3 months	$0  
 F5	Environmental Site Assessment	NEPA	Disturbance of lands	Required Permit	24-36 months	$100,000  
 F6	Radio Communication License	Federal Communication Commission (FCC)	Use of two way radios on site	To be determined	2 months	$0  
 STATE						 
 S1 	Aquifer Protection Permit (APP) Modification	Arizona Department of Environmental Quality (ADEQ)	Discharge Facility	Required Permit	6 months	$35,000  
 S2	Construction Activities Storm Water General Permit; Notice of Intent (NOI)	Pima County Department of Environmental Quality (PCDEQ)	Construction greater than 1 acre	Required Permit	1 month	$0  
 S3	Industrial Activities Storm Water General Permit; Notice of Intent (NOI)	PCDEQ	Industrial storm water discharge	Required Permit	2 month	$0  
 S4	RCRA Identification Number	PCDEQ	Hazardous waste generation	Required Permit		$0  
 S6	Individual Class II Air Quality Permit	PCDEQ	Construction and mining operations	Required Permit	8 months	$20,000  
 S5	Encroachment Permit/Right of Way	Arizona Department of Transportation (ADOT)	State highway right-of-way encroachment	To be determined	5 months	$0  
 S7	Above Ground Fuel Storage Tank	Arizona State Mine Inspector (ASMI)	60 Gallons or more  stored on site	To be determined	3 months	$0  
 S8	Notice of Start Up	ASMI	Any new mining operation	Required Permit	2 months	$0  
 S9	Well Registration	Arizona Department of Water Resources (ADWR)	Based on understanding that site is located outside of Active Management Area, Limited requirements apply. Must provide notice of intent to drill, deepen, replace, or modify a well	To be determined, based on water source		$0  
 S10	Notice of Intent to Clear Land - Native Plant Permit	Arizona Department of Agriculture (ADAG)	Notice is required before destroying native plants. Removal and transplant requires permit	Investigate presence of trigger species (Mining is exempt but must file)	0 months	$0  
 LOCAL						 
 L1	Grading Permit	Pima County	If new contraction is requires	To be determined		 
 L2	Non-Residential Building Permit	Pima County	Construction, alteration, or additions to a building or structure	To be determined		 
 L3	Permits for various construction activities, including Dry Utilities, Temporary Construction Power, and Encroachment	Pima County	Construction activities	To be determined		 
 L4	Septic System Permit	Pima County	Construction of new or modified onsite wastewater treatment facility	To be determined		 
 L5	Public Water System Authorization	Pima County	Construction of new or modified public water system	To be determined		 
 L6	Floodplain Use Permit	Pima County Flood Control District	Construction within floodplain or area of special flood hazards	To be determined		 
 						 
 						 
 						 
 

[mr40]

Good article. One of the things investors neglect to consider when buying into a mining company is the time and cost of permits. Here is a list of permits for a mining company in Arizona. The estimated times for permitting and the costs/fees are grossly underestimated. An MPO from BLM can take 2 years and cost hundreds of thousands of dollars. Even most legit junior miners run out of funds before they get all their permits.

Korn Kob Mine Project Permit Matrix						 
  						 
 ITEM #	Type of Permit	Agency	Project Trigger	Comment	Timeline	Fee 
 FEDERAL						 
 F1	Plan of Operation (PoO)	US Forest Service (USFS)	Mining Activity	Required Permit	12 months	$0  
 F2	Magazine Construction Permit	Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF)	Storing of explosives on site for blasting	To be determined	6 months	$0  
 F3	Miner Registration Number	Mine Safety & Health Administration (MSHA)	All mining facilities	Required Permit	3 months	$0  
 F4	Section 404 Permit (certified by ADEQ under Section 401)	U.S. Army Corps of Engineers	Discharge of dredge or fill material into waters of the U.S.	Required Permit	3 months	$0  
 F5	Environmental Site Assessment	NEPA	Disturbance of lands	Required Permit	24-36 months	$100,000  
 F6	Radio Communication License	Federal Communication Commission (FCC)	Use of two way radios on site	To be determined	2 months	$0  
 STATE						 
 S1 	Aquifer Protection Permit (APP) Modification	Arizona Department of Environmental Quality (ADEQ)	Discharge Facility	Required Permit	6 months	$35,000  
 S2	Construction Activities Storm Water General Permit; Notice of Intent (NOI)	Pima County Department of Environmental Quality (PCDEQ)	Construction greater than 1 acre	Required Permit	1 month	$0  
 S3	Industrial Activities Storm Water General Permit; Notice of Intent (NOI)	PCDEQ	Industrial storm water discharge	Required Permit	2 month	$0  
 S4	RCRA Identification Number	PCDEQ	Hazardous waste generation	Required Permit		$0  
 S6	Individual Class II Air Quality Permit	PCDEQ	Construction and mining operations	Required Permit	8 months	$20,000  
 S5	Encroachment Permit/Right of Way	Arizona Department of Transportation (ADOT)	State highway right-of-way encroachment	To be determined	5 months	$0  
 S7	Above Ground Fuel Storage Tank	Arizona State Mine Inspector (ASMI)	60 Gallons or more  stored on site	To be determined	3 months	$0  
 S8	Notice of Start Up	ASMI	Any new mining operation	Required Permit	2 months	$0  
 S9	Well Registration	Arizona Department of Water Resources (ADWR)	Based on understanding that site is located outside of Active Management Area, Limited requirements apply. Must provide notice of intent to drill, deepen, replace, or modify a well	To be determined, based on water source		$0  
 S10	Notice of Intent to Clear Land - Native Plant Permit	Arizona Department of Agriculture (ADAG)	Notice is required before destroying native plants. Removal and transplant requires permit	Investigate presence of trigger species (Mining is exempt but must file)	0 months	$0  
 LOCAL						 
 L1	Grading Permit	Pima County	If new contraction is requires	To be determined		 
 L2	Non-Residential Building Permit	Pima County	Construction, alteration, or additions to a building or structure	To be determined		 
 L3	Permits for various construction activities, including Dry Utilities, Temporary Construction Power, and Encroachment	Pima County	Construction activities	To be determined		 
 L4	Septic System Permit	Pima County	Construction of new or modified onsite wastewater treatment facility	To be determined		 
 L5	Public Water System Authorization	Pima County	Construction of new or modified public water system	To be determined		 
 L6	Floodplain Use Permit	Pima County Flood Control District	Construction within floodplain or area of special flood hazards	To be determined		 
 						 
 						 
 						 
 

[Spanky227]

How many gold mine companies march their lead geologist out in front of his colleagues to discuss their gold mine if they were running some kind of scam?

In my opinion this event is even more evidence that NBRI is the real deal and the Ruby is a real gold mine.

January 17, 2014, Friday
GSN MEMBERSHIP MEETING (Every Third Friday)
The monthly meeting will be held at the Reno Elks Lodge, 597 Kumle, Reno. Drinks at 6:00 PM, Dinner at 7:00 PM, Talk at 8:00 PM. Speaker: Gary Clifton, Western Resource Group LLC. Title: "The Ruby Tertiary Channel, Sierra County, California." Sponsor for the evening is: ENVIROTECH DRILLING.. Dinner reservations must be made by WEDNESDAY, JANUARY 15TH. Call Laura Ruud at 323-3500; Email: [e-mail]. DINNER $25.00

http://gsnv.org/info/events.php

[jstorm]

Great article on mining scams. Here are highlights:

- American eagles, stars and stripes, the Statue of Liberty, cowboy boots, and gold bars prominently displayed all over the front page are big red flags that say, “Put your running shoes on, folks”.

- Likewise, the more gold that is plastered all over the website, the less there is likely to be in the ground.

- If the company happens to be only OTC listed, run, don’t walk, these companies are not subject to the same oversight as companies listed on larger exchanges. A recent example, Mission Mining, is an OTC listed company operating completely outside the bounds of acceptability and accountability.

- My personal avoid list also includes companies domiciled anywhere near Las Vegas (see Mission above), Scottsdale, and even Miami.

- Be very wary of oddball minerals that purportedly account for a significant economic value in the rock.

- “Proprietary” anything should make you nervous—as in “proprietary assay techniques”, metallurgical processes, or modeling software.

- If anyone ever raises money on projects in the Moapa Formation (see Las Vegas again) or getting gold out of cinder cones, sell everything—we are in a bubble.

Full Article here:
http://ceo.ca/rules-of-thumb-for-junior-mining-speculators-and-a-light-at-the-end-of-the-tunnel

[jstorm]

Great article on mining scams. Here are highlights:

- American eagles, stars and stripes, the Statue of Liberty, cowboy boots, and gold bars prominently displayed all over the front page are big red flags that say, “Put your running shoes on, folks”.

- Likewise, the more gold that is plastered all over the website, the less there is likely to be in the ground.

- If the company happens to be only OTC listed, run, don’t walk, these companies are not subject to the same oversight as companies listed on larger exchanges. A recent example, Mission Mining, is an OTC listed company operating completely outside the bounds of acceptability and accountability.

- My personal avoid list also includes companies domiciled anywhere near Las Vegas (see Mission above), Scottsdale, and even Miami.

- Be very wary of oddball minerals that purportedly account for a significant economic value in the rock.

- “Proprietary” anything should make you nervous—as in “proprietary assay techniques”, metallurgical processes, or modeling software.

- If anyone ever raises money on projects in the Moapa Formation (see Las Vegas again) or getting gold out of cinder cones, sell everything—we are in a bubble.

Full Article here:
http://ceo.ca/rules-of-thumb-for-junior-mining-speculators-and-a-light-at-the-end-of-the-tunnel

[jstorm]

Great catch true scam!

[mr40]

Searchlight Minerals: Progeny of a Scam

JANUARY 24, 2010 –
I was recently reading a Forbes feature on hedge fund manager Kyle Bass, who made his name shorting subprime and is now focused on sovereign defaults. Back in the late 90's, he told clients to short Delgratia Mining, a name I wasn't familiar with.

Check out this Fortune piece on Delgratia from 1997. Typical mining scam, with outlandish PR claims of a multi-million ounce gold discovery at their property in Clark County, Nevada. (You can see the drill hole press release that set off the fireworks here.) Here are two sections I want to hone in on:

"In a statement from Delgratia's chairman, Dr. Charles Ager, the company backed off from the claim of five million ounces, saying, "it is premature to quantify the potential of this gold system." The same press release also revealed that Delgratia was increasing its interest in the Nevada property. The unusual admission? It was acquiring the stake from a company incorporated in the British Virgin Islands that is 50% owned by Ager's family."

and

"In a recent phone call, Delgratia's Ager says his stock was overwhelmed by shortsellers and misinformation. He remains even-keeled and encouraging. "This company has tremendous value," he says. What about that Nevada official's disclaimer of Delgratia's initial test results? "We have reported just four holes of a 75-hole program, and until we get enough holes--I'm an engineer and a scientist--I'm not prepared to tell the world what I think."

This Ager fellow is clearly an upstanding gentleman, in addition to being an engineer and a scientist. I decided to look him up, to see what he's up to now. Funnily enough, my search led me to a company that I've already given the thumbs down here in CAPS: Searchlight Minerals (SRCH.OB)

Here are some snippets from the SRCH.OB proxy:

HOLDERS OF MORE THAN 5% OF OUR COMMON STOCK

Dr. Charles A. Ager 17,045,190 (8)(10) 15.99 %

Nanominerals Corp. 16,000,000 (8) 15.01 %

On January 17, 2006, Nanominerals acquired 16,000,000 shares of our common stock from K. Ian Matheson in consideration of a payment of $4,640.50

"Pursuant to a Schedule 13D filed by Dr. Charles A. Ager, Nanominerals (website) is a privately held Nevada corporation which owns 16,000,000 shares of our common stock. Ian R. McNeil and Carl S. Ager, who are our officers and directors, each own 17.5% of the issued and outstanding shares of Nanominerals. Dr. Charles A. Ager, the sole director and officer of Nanominerals, and his wife, Carol Ager, collectively own 35% of the issued and outstanding shares of Nanominerals. Further, Messrs. Ager and McNeil have given an irrevocable proxy to Dr. Ager to vote their respective shares of Nanominerals during the time that Mr. Ager or Mr. McNeil, as the case may be, serves as one of our directors or executive officers. Dr. Ager has sole voting and investment powers over the 16,000,000 shares owned by Nanominerals."

"Nanominerals Corp. (“Nanominerals”) is a private Nevada corporation principally engaged in the business of mineral exploration. We have engaged Nanominerals as a consultant to provide us with the use of its laboratory, instrumentation, milling equipment and research facilities which has allowed us to perform tests and analysis both effectively and in a more timely manner than would otherwise be available from other such consultants. Dr. Charles A. Ager performs the services for us in his authorized capacity with Nanominerals under our consulting arrangement with Nanominerals. Dr. Ager currently is the sole officer and director of Nanominerals, and controls its day to day operations."

"In connection with our February 2005 change of business, on February 8, 2005, we entered into mineral option agreements with the Searchlight Claim owners to acquire 20 mineral claims representing an area of 3,200 acres located in Clark County, south of Searchlight, Nevada."

"in connection with the acquisition of the Searchlight Claims in February 2005, Geotech Mining Inc. and Geosearch Mining Inc., which are affiliates of Dr. Charles A. Ager and his wife, Carol Ager, who were Searchlight Claim owners, have each received 140,000 shares of common stock with respect to the transfer of title to their interests in the Searchlight Claims under the option agreements for the Searchlight Gold Project."

"We acquired the assets consisting of the 50% financial interest in the Joint Venture Agreement with respect to the Clarkdale Slag Project from Nanominerals. (Clarkdale is SRCH.OB's flagship project)

"Messrs. Ager and McNeil are the son and son-in-law, respectively, of Dr. Ager and Mrs. Ager. Dr. Ager, Mr. Ager and Mr. McNeil may be considered promoters of the Company by virtue of their positions in the Company and Nanominerals."

So, there you go. Searchlight is Son of Delgratia, in more ways than one.

[jstorm]

The AFYG board has successfully managed to have me banned. Guess tough questions are unwanted over there i.e. everyone on board is still down big time on their bids... invite all ya'all to take my place and ask the tough questions no one else will... do some simple DD and you will all agree.

Hey here is nice chart on AFYG for you all to enjoy-


And some nice underlying post from an outside source:
http://incakolanews.blogspot.com/2010/01/affinity-79ff-and-constitution-cminob.html

http://incakolanews.blogspot.com/2010/05/chart-of-day-is_06.html

I must be wrong lol never was or never will be a scam!!!

[jstorm]

Better indicator is when gold bugs quit calling bottom- then it is in- gold will resort to $1k or or so before it rebounds

[Phatlander]

Interesting article on Yahoo Finance states that bashing gold miner stocks has reached new heights in popularity, and recommends going against the popular trend and investing in miners, quote follows:

'Blood in the Streets' Gold Miner Play Could Pay Off Big

45 minutes ago
Haters gonna hate, politicians gonna lie, and gold bashers gonna bash. The third of these homespun truisms has never been more prevalent then of late, as nearly every pundit I've heard these days is ready to toss the metal, and miners, out like a red-headed stepchild.

Year to date, gold prices have admittedly been dismal. So far in 2013, SPDR Gold Trust (GLD) is down more than 28%. Mining stocks have fared even worse.

Year to date, Market Vectors Gold Miners (GDX) is down 54%. That's the worst performance in the sector since the widespread equity meltdown of 2008.

The chart below shows the fund trading well below both the short-term, 50-day moving average and the long-term, 200-day moving average. In fact, GDX now trades just slightly above multi-year lows.


So, what's made gold and gold miners such an unappealing trade this year?

[More from ProfitableTrading.com: Changing Job Market Could Boost These Shares 15%]
Well, first we need to understand that this year's selling came after a five-year bull run that was fueled in large part by the Federal Reserve and its easy money policies. A near-zero interest rate policy and massive quantitative easing via an $85-billion-per-month bond-buying scheme caused a lot of capital to maneuver into the safety and inflation trade that gold represents.

Yet, as the year got under way, the wind came out of gold's sails, as talk of Fed tapering and an improving economy caused a rotation out of gold and into high-flying equities.

Proof of the negative effect of tapering on gold can be seen recently. When the Fed finally announced that it would begin tapering next year at a proposed pace of $10 billion per month, the news sent gold and the miners down to multi-year lows, and both now are testing very long-term technical support levels.

But here's the thing -- if you are an intrepid investor looking to hit a home run in a very beaten-down sector, then I think there's none better right now than gold miners.

First off, there's the aforementioned technical picture. Yes, it's bearish here, but if we see gold miners hold support for a few weeks at current levels, then it could be the floor that the smart money has put on gold. It also could be the value at which the market looks at gold now that the taper decision has been made.

[More from ProfitableTrading.com: Gun Stock Could Rally Another 25% in the New Year]
Second, the big-picture reason why gold and mining stocks went higher over the past few years is due to fear of inflation caused by all of the money printing that central banks around the globe have engaged in since the Great Recession.

While this inflation hasn't materialized yet, at least not in official metrics, there still are billions of dollars that remain on bank balance sheets that haven't yet made their way into the system. If that starts to happen in 2014, and an uptick in inflation begins, then gold and miners could easily catch a bid once again.

Finally, there is the "blood in the streets" reason to buy gold miners. This reference to the famous Baron Rothschild quote applies here, because to make the really big money in a trade you usually need to get into a trend before it ignites. In this case, before it re-ignites.

Doing so is, admittedly, a swing for the fences. In trying to hit a home run with gold miners, there's a good chance you could strike out. Yet, if you put a small amount of trading capital to work, and if you have a stop-loss in place, your downside is minimal in an ETF such as GDX. Meanwhile, the upside of another bull run in gold could let you participate in the contrarian glitter in the space.

[More from ProfitableTrading.com: This 170% IPO Winner Still Has Plenty of Room to Run]
Recommended Trade Setup:

-- Buy GDX above $22.90, just above the current 50-day moving average
-- Set stop-loss at $21.07
-- Set initial price target at $27.48 for a potential 20% gain in six months

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Gun Stock Could Rally Another 25% in the New Year
This 170% IPO Winner Still Has Plenty of Room to Run
Report TOS

[jstorm]

LOL I would love to see NBRI cheerleaders show me those technical reports claiming $550/ounce all in costs. I would shred those docs to pieces... NBRI is focused on being able to say they are a producer, nothing more. They will figure out if the mine can make money later i.e. recipe for disaster!

[mr40]

There are dozens of junior mining exploration and even those in production are down over 95%.

The mining sector is not the place to be right now.

Look at Mercator Minerals - TSX:ML
They have been operating a copper mine since 2009 and the stock was over $4 in 2011. Recently they laid off 40 employees.
Today it is at .09.

[Spanky227]

You are the one who brought it up.

[Huggy Bear]

You do realize you are posting pro-NBRI sentiment constantly on a board called Fool's Gold right?

The proselytization attempts are best spent on a board with some guys named Mark to impress, IMO.

[Spanky227]

The areas they will mine first in the black channel is the same area most of the gold was mined in back in 1940-1942. Best fully intended to mine this area but couldn't. The rest of the channel already has the central tunnel cut. I am pretty sure our geo can find lots of gold in this rich channel.

You may not see it but its there.

[Huggy Bear]

That is correct, I sure cannot see it. And guess what, they cannot either. Do you think they have xray eyes to see thru all that rock and go straight to the good stuff?

Without the proper independent studies to determine proven and probable reserves all you have is wishful thinking.

[Spanky227]

Ok so you don't see how a mine engineer with 40 years experience with 15 years at this mine couldn't figure out costs on techniques that have been used for 150 years.

Interesting.

[Huggy Bear]

As far as the SEC and FINRA are concerned 150 years of mining history and company in house estimates do not mean squat.

[Spanky227]

Yes NBRI can only base their costs on 150 years history of mining these channels on and near this property. I can see where a 40 year experienced mine engineer, with 15 years at this mine, wouldn't have a clue how much the costs will be.

[Huggy Bear]

However they will be a low cost producer and not a high cost.

There is zero independent supporting evidence of this. I doubt anyone on this board supports your assertion except Mr. Squirrel.

I will believe it when NBRI can prove it to be true and not before.

[Spanky227]

It will absolutely effect NBRI.
However they will be a low cost producer and not a high cost. So instead of a 95% haircut they will get a 50% haircut.

NBRI is and has been about 2015-2020. Gold will be much higher in 18-24 months which is about the same time NBRI will be ramped up to full capacity.

[Huggy Bear]

Yet of course will not affect NBRI correct since their inhouse projections are to produce gold at 550/oz. right?

[Spanky227]

30% drop in gold can easily eat away 95% of your profits.

[Blindsquirrel]

Its the gold price. THM is listed on the NYSE and TSX. Pull up a chart of ABX. Same thing. Alltime hi of $55 in 2011 down to a 20 year low today.

[Huggy Bear]

Do you think this massive drop in THM is due to gold being 30% off all time highs or was it just perhaps another overhyped gold stock with terrible fundamentals?

[Blindsquirrel]

Yer not kiddin. I just looked at THM and its making new alltime lows at 0.37. 2 years ago it was at $10! Just about every gold stock looks like this.

http://finance.yahoo.com/echarts?s=THM+Interactive#symbol=THM;range=my

[Huggy Bear]

Good luck with that.

[Spanky227]

Good luck huh?

I doubt you mean that.

So they have been around for 10 years but won't make it another 3 months.

Care to wager on that?

[Huggy Bear]

With the challenges facing NBRI they may not be around next spring. Napkin costs calculations don't work in this sector. And the need for much more toxic financing is evident to myself and others who share a pragmatic view without the gold colored glasses. That said good luck NBRI.

[Spanky227]

Yeah but its 1000% above its 5 year low.

We can argue all day about NBRI. Let me know if you dig up a good reason they won't mine thousands of ounces once they move into the black channel next spring.

[Bob22701]

I will say that NBRI has performed better than most junior mining companies. The share price for NBRI is only 85% below its 5 year high.

Many junior mining companies are more than 99% off of their 5 year highs.

GLTA
Bob

[Bob22701]

I don't try to shut anyone down. The convertible debt information for NBRI is in their latest 10-Q.

Companies that provide convertible debt are like loan sharks. They require the most onerous terms because companies that use convertible debt to survive are unable to get better terms from anyone else.

GLTA
Bob

[Spanky227]

Also NBRI is not dependent on convertible debt due to the unique nature of Ruby nuggets. They have an agreement for $2.2M of pre sale gold nuggets they can tap for the final ramp up into full scale mining. There are a few more converts that will happen but after the $29K scheduled for next week there isn't another one scheduled till March.

[Spanky227]

ABX just did basically the same thing.

You going to shut them down as well?

[Bob22701]

The biggest problem with NBRI is a dependence on convertible debt financing which has been the destruction of almost every junior mining outfit that has used convertible debt financing as a last resort.

The end results of convertible debt financing is always dilution.

IMO the companies that provide convertible debt financing should be put out of business by the SEC.

GLTA
Bob

[Spanky227]

Not sure about the others. I am sure about NBRI.

Thanks

[feinanddandy]

Best of luck to you. As I have stated previously, 99% of these junior mining outfits fail miserably. They just have no clue what it takes to mine with respect to time and money involved.

[Spanky227]

All channels known or unknown on the Ruby claim are under the current permit. The only "new" permit needed would be if they followed a channel off their current claim property. In that case it may require an amendment of the current permit.

Ruby's first samples due in the next few days.

[feinanddandy]

Perhaps, however, each new channel must be permitted unfortunately. I wish them luck, however, it would make much more sense for these Jr. Miners to find the gold, then announce how much there is, not the other way around.

Speculating there are 500,000 ounces of gold in the ground is ridiculous based on what they have currently, IMO.

GLTY

[Spanky227]

Thanks for the message.

NBRI shouldn't have to drill that many holes. The tunnel already goes into the mountain a few miles. When they find water dripping from the ceiling of the tunnel that signifies there could be a channel above the tunnel. So they basically just drill a hole up from that point to verify if its a channel with gold or not. If they find gold they build a tunnel under that channel under the lowest point of the channel. From the surface it would be impossible but from below it should be easier.

First sample results out soon but any significant gold totals will probably show up this spring when they finish their raise into the black channel that the "C L Best 1000 ounces of large gold nuggets collection" came from.

Thanks

[feinanddandy]

I might be able to help on this one. Most Jr. Mining outfits that lay claims to 500,000 ounces of gold in the ground are full of crap. Here's why:

There are about 1000 legitimate mining companies on the globe, and they pay real close attention to any company suggesting these quantities of PM's. Any or all of them would be kicking down the doors to buy NBRI if any of those levels were remotely true. While their may be some gold in the ground, 500,000 ounces is outlandish. Furthermore, ask the company to post the core sampling results for shareholders to review. With these claims, there should be gold found up to depths of 90ft or more.

Which would mean NBRI would of had to drill over 1000 core samples to get the ratio associated with 500,000 ounces of gold.

Just some information to think about, be careful, 99% of penny mining companies are in fact SCAMS, and they know it.

GLTY Happy Holidays!

[mr40]

Since you are so curious, I suggest you call and ask. John is the Director of the Center for Research in Economic Geology at the U of Nevada in Reno.

--NBMG Special Publication 22, Gold from Water (And Other Mining Scams)
--Division of Minerals, Mining Fraud and Mining Investment Page

NBMG Laboratory (for umpire assaying):
--NBMG Analytical Laboratory Web Page

Contacts:
Primary contact:

John Muntean
Research Economic Geologist
e-mail: [e-mail]
phone: [phone]
fax: [phone]

If Mario is not available, please contact:

David A. Davis
Geologic Information Specialist
e-mail: [e-mail]
phone: [phone]
fax: [phone]

Learn more about David here:
http://www.linkedin.com/profile/view?id=288116823&authType=NAME_SEARCH&authToken=ExBH&locale=en_US&srchid=1995132241387340597333&srchindex=2&srchtotal=156&trk=vsrp_people_res_name&trkInfo=VSRPsearchId%3A1995132241387340597333%2CVSRPtargetId%3A288116823%2CVSRPcmpt%3Aprimary

[Blindsquirrel]

That still does not answer the question. Who is Mario?

[mr40]

Good alias - "blind"!

That is NOT A PR! It is a website with contact information about suspected mining scams in Nevada!

[Blindsquirrel]

If Mario is not available, please contact:

Who is Mario? Theres no one in that pr named Mario. LOL!

[mr40]

INVESTOR AWARENESS BULLETIN

A Guide to Mining Investments

The exact location of the mine site is often not disclosed in many mining investment scams, yet surprisingly people continue to invest in these programs without knowing where the actual mining is to take place.
Press the people who are offering the investment to you (the
offerors) for the exact legal descriptions of the site—do not accept a lay description such as “the proposed mine site is located approximately twenty-five miles northwest of Flagstaff, Arizona.” That type of description tells you nothing at all about the true location of the site. If the offerors cannot or will not provide you with the exact location of the mine, DO NOT INVEST!!

HAVE ANY ASSAYS BEEN PERFORMED
ON THE ORE?

Usually, offering materials do provide what the offerors
claim to be assays, but beware. Assays are only meaningful
if they are based upon a systematic and scientific program of
ore sampling. An assay based upon one or two ore samples is
essentially meaningless—it takes literally hundreds or
thousands of separate ore samplings to properly evaluate the
true potential of a mine site. Also be aware that even an
accurate assay only tells you the amount of certain precious
metals in a specific ore sample, not the amount of precious
metals that can be economically extracted from that minesite
or even that sample. No mining or refining technique can
economically extract all of the precious metals present in an
ore body.

In reading assay reports, certain “red flags” signal that
perhaps you are not receiving accurate information:


Reports indicating the presence of ½ ounce or more of
gold per ton or ore. A mine site with ore values
consistently this high would represent one of the richest
finds of the century!

Reports of precious metals not normally found together
in the same ore. For example, while gold and silver are
commonly found together, gold and platinum group
metals are not.

Reports that traditional “fire assay” methods will not
give an accurate reading of the precious metals content
of the ore, while the offerors’ “secret” or “revolutionary”
methods will. A fire assay performed in a correct
manner will give an accurate reading of the precious
metals content of any ore sample.

Assayers who meet certain qualifications are registered
with the Arizona Board of Technical Registration; call
the Board (602-364-4930) to see if the assayer is
registered, and if there is any information available
concerning public actions against the assayer.

If mining is currently going on at the site, be sure to get
copies of all production reports.
Once you are satisfied that the ore at the mine site has
commercial value, you are ready to ask the next question:

WHAT IS THE PRIOR MINING OR REFINING
EXPERIENCE OF THOSE WHO WILL BE IN
CHARGE OF THE MINING OPERATION?
Do not trust your money with people who have no prior
experience in the mining industry. Mining is a highly skilled
and technical profession, a field that cannot be profitably
pursued by amateurs. If possible, check out ALL of the
mining and business references provided by the offerors. If
they have not provided you with any references, require
them. If they have no references they can give you, or if their
references are so vague that you cannot check on them, then
the operators may not have any mining or refining
experience.

You should next ask …

WHAT IS THE FINANCIAL CONDITION OF THE
PEOPLE WHO WANT MY MONEY?

Are the people to whom you will be giving your money
financially solvent? Are they a newly created company with
little or no assets? Do they personally have any financial
stake in the venture, or are they merely a group of people
who want to enter a high risk venture using other people’s
money? You don’t know the answer to these questions until
you see balance sheets, profit and loss statements, and other
financial documents. Audited. Once again, if these types of
financial statements are not provided to you, require them.
Remember that the most meaningful financial statements are
those that have been prepared by an independent certified
public accountant.

Your next question is …

HAVE ANY OF THE PERSONS ASSOCIATED WITH
THE OFFERING BEEN THE SUBJECT OF PAST
ACTION TAKEN BY A GOVERNMENTAL AGENCY
OR PRIVATE PARTY?

Obviously, you want to know whether the people to whom
you will be giving your hard-earned money have a history of
law violations, civil lawsuits, or bankruptcies. Just as
obviously, if the people who want your money do have such
histories, they will naturally be reluctant to reveal their prior
legal problems to you.

Contact the Securities Division for information about federal
or state securities law actions. Also, contact the mining
department, any other appropriate state agencies, and the
Better Business Bureau. If the mine site
is located on public land, contact the
state’s land department, or federal
agencies such as the Bureau of Land
Management or the Forest Service.
Review civil and bankruptcy court
records. (Important numbers are listed
on the last page of this bulletin.)
Having satisfied yourself that the people to whom you may
be giving your money do not have a history of law violations,
you should next ask …

WHAT ARE THE COSTS AND OBLIGATIONS
INVOLVED IN INVESTING IN THE PROGRAM?
How much is the investment going to cost you? What are
you to receive for your money? A certain tonnage of ore? A
certain number of ounces of precious metals? Stock? A pure
cash return on your investment?

How is your investment to be made? In a lump sum, or in the
form of periodic payments? Could you be required to
provide additional money at some time in the future?

Under the terms of the offering, must you meet any
obligations or perform any duties other than making the
investment?
Once you understand the costs and obligations involved in
investing in the program ask …

WHAT ARE THE RISKS INVOLVED IN INVESTING
IN THE PROGRAM?

All investments have some amount of risk involved in them,
and the general rule is this: the greater the potential profit,
the greater the potential risk.

What assurance do you have that the offerors will not
simply take your money and run? Is your investment
secured by real property or equipment? (NOTE: It is a
“red flag” if the promoters are guaranteeing that you will
not lose money, whether they are offering your money
back on demand or guaranteeing that a certain amount of
gold is available.)

If the price of gold drops suddenly, would it still be
feasible to mine? Does the mining program depend upon
a continuous stream of investment capital in order to
operate the mine? If it does, what if the stream of money
decreases or is cut off? It can take millions to begin a
viable mining operation.

Do the mine operators have any conflicts of interest that
could cause them to devote less than their best
efforts to the mining project?

Mining is inherently dangerous. If a worker gets injured
at the mine site, could you be held financially
responsible? If an injured worker sues the mine, is there
enough liability insurance to cover the worker’s claims?

If you are satisfied that you completely understand the risks
involved in investing in the program, your next question is …

EXACTLY HOW ARE THE OFFERORS GOING TO
USE INVESTOR PROCEEDS?
You need to know just where your money will be going.
Would some of your investment funds be used to pay sales
commissions to the offerors or others? Towards salaries,
legal fees, or other administrative expenses? How much of
your investment money is actually going directly into the
mining or refining of ore? What types of fees are going to be
paid to the offerors? For what services? Arizona securities
law requires that full disclosure be made to investors of the
exact uses of proceeds in the venture.


http://www.asmi.state.az.us/userfiles/file/Inspections/guide%20to%20mining%20investments.pdf

[mr40]

Fraudulent Mining Promotions

Mining scams have historically been limited to the precious metals (gold, silver, platinum, palladium, rhodium, ruthenium, osmium, and/or iridium). This is because the high unit value of these
metals usually requires assaying to identify the presence of economic concentrations of the metals, and special or proprietary assaying or extraction methods can be fraudulently promoted.
When one or more of the precious metal prices increases significantly, there is generally an increase in mining scam activity. Platinum-group elements have recently experienced substantial price increases (especially palladium and rhodium) and an increase in fraudulent mining promotions involving these metals should be anticipated.

For further information:
--NBMG Special Publication 22, Gold from Water (And Other Mining Scams)
--Division of Minerals, Mining Fraud and Mining Investment Page

NBMG Laboratory (for umpire assaying):
--NBMG Analytical Laboratory Web Page

Contacts:
Primary contact:

John Muntean
Research Economic Geologist
e-mail: [e-mail]
phone: [phone]
fax: [phone]

If Mario is not available, please contact:

David A. Davis
Geologic Information Specialist
e-mail: [e-mail]
phone: [phone]
fax: [phone]

[Spanky227]

Can you post 1 ounce of proof NBRI is a scam?

You said you are exposing, just wondering what your proof is.

Can't wait to see something, anything of substance from you on this.