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Do you know what the "proprietary extraction process" is? So many of these desert dirt scams claim to have some new process and it invariably turns out to be nothing but hype.
What is this all about? Another red flag.....
certain proprietary extraction technology
Forgot about that one - diamonds!
But, I have to say there are even lower rungs on the mine scam ladder. There is an OTC company in Arizona claiming to be able to extract gold from fly ash (what is left after you burn coal). There is another OTC company that claims to have 10 million ounces of gold in the huge slag pile at Clarkdale (Phelps Dodge's copper smelter for the Jerome copper ores). They have spent 7 years trying to figure out how to remove the gold - no success yet (gee, wonder why?!). Paying their BOD over a million bucks a year in the meantime. And, several companies are claiming huge amounts of gold in old mine tailings with no assay data to back up their claims. Investors buy in anyway.
Meteorites - that's funny! More chance of that than economic levels of REE. At least they have not claimed platinum group metals, but give them time......
I didn't say it hadn't been disclosed previously - it was just new to me as I have just started to look into BONZ. I am used to looking at pinkie filings which are next to useless, and it was kind of nice to see some filings for a reporting company. Unfortunately for BONZ, there is a lot of dirty laundry in their short history. And the current PRs about rare earths is not lending them any credibility whatsoever. Savvy investors will see right through that.
As for gold production, I will be curious to see what they think a reasonable timeframe is, considering they are at a very, very preliminary exploration stage.
You need to start with a material that at least has anomolously high REE content to have any hope of ending up with a saleable concentrate. I looked at the data they have generated so far, and this stuff is about as normal background as you could find for REE. To think it will ever be REE "ore" is not realistic and why they would send samples to a special lab in Canada for more REE analysis is just plain silly.
You say it is being done by mines in the area already? I doubt it. First, there are very few gold-producing mines lode mines in Arizona right now - three I think. And very few commercial placer mines that are not flat-out stock promotions. Finally, there is no recorded REE production in Arizona that I know of.
Two press releases touting rare earths looks like a blatant promotion to me.
I know that BONZ is not a pink - just looked at the 10K which came out today, and was impressed by the actions of former CEOs. One apparently sent a big chunk of company funds to the Dominican Republic. Another one had some funny business going on with stock options. There are a number of contracts that were either forged or never signed over. They probably wish they were a pink, so that they wouldn't have to disclose all this dirty laundry.
As for placer gold in Deadwood, I know that many, if not most major gold discoveries started as placers. Look at the California gold rush, etc. Same in Arizona - many of the larger gold deposits were found by tracing placer to its source. My point is that the easy-to-get, higher grade placers are pretty much gone in Arizona. Anything left today is either low grade, or low volume. And as I said, evaluating a placer is very tricky - they tend to be sporadic, concentrated on bedrock, within old stream channels, etc. You need to sample the crap out of them, and use the right methods. I don't see that BONZ is anywhere close to having a viable placer mine ready to go.
Keep waiting - that "ancient river of gold" doesn't exist.
Anytime somebody tries to tell you that placer gold is "locked up in the rocks" or some other hogwash like that, turn and walk the other way. It is BS. Placer gold is there for one reason - it is heavy and it is free (not locked up with some other mineral, or buried inside a rock!). You should never have to crush placer material to "liberate" the gold - that is a sure sign of a scam or a completely incompetent operator. They are making excuses for their poor processing plant, or the grade is just not there.
Also, taking pictures or video of a process plant for the sake of showing investors is a classic move to sell shares. How does a retiree in Florida looking at this video know the difference between a real operation, and a sham?
True, a placer mine could be brought into production much quicker than a hard rock mine, and with far fewer permitting issues. But, the grade has to be there, and I don't see any thorough testing results on BONZ's website. All I see is a report written by a member of the board of directors, which is certainly not a third-party report. And, he is registered in Wyoming, a non-tested certification which is not recognized by the State of Arizona.
There are very few "real" placer mines operating in Arizona right now - by "real", I mean a mine that is profitable and not just a promotion. Placer mines are tough to explore and evaluate and equally tough to operate at a profit. There is a reason that there are so few placer mines working right now in Arizona, other than hobbyist-level operations.
They are in an exploration phase and years away from any mining (and probably never will mine). Being on federal lands, they must file a Notification which describes what they plan to do, and they have to post a reclamation bond for any disturbances to the land such as bulldozing an exploration road, or drilling exploration holes. I would hope they have general liability insurance, but I don't see the need for environmental insurance at this point.
To think these guys will ever mine gold is laughable. Hate to burst some bubbles, but the average time from exploration to production for a hard rock mine is now 17 years, according to a paper recently presented at the MineExpo in Las Vegas. Some samples of quartz veining running a tenth of an ounce gold is about as common as can be in Arizona. It does not mean you have a mine.
No, there is no way there are enough rare earths left in tailings after gold mining is done to be worth processing as a rare earths ore. That's assuming they ever do any gold mining, which is pretty unlikely.
If you look at the rare earth concentrations in the assay reports provided on BONZ's website, the numbers are at background levels which you would expect to find in soil or rock anywhere. This is NOT a rare earths prospect and the only reason they mentioned rare earths is to sell stock.
When you submit a rock sample to an assay lab and request TE-32 (Trace Element - 32), the lab reports the numbers for some of the rare earths (not all of them) along with a lot of other elements that are irrelevant. Their instrumentation provides the number and they report it. These rare earths numbers are a curiosity, nothing else, but sometimes a company chooses to use those numbers to sell stock to folks who have no idea what they mean.
Rare earths are not that rare. They are present in detectable amounts in most rocks and probably in the dirt in my backyard. Why would an "exploration company" waste everybody's time talking about background concentrations of rare earths in a PR?
Very good article - thanks. 17 years? Not 3-4 months like some people would like to think?
Transparency? I guess I am puzzled by that word, because GDSM appears to be the definition of un-transparent. Their PRs are fluff, and meaningless. They can't fund the simplest of sampling programs. Their JV is probably over, and they haven't addressed that. And, without any announcement to shareholders, they filed with the State of Florida to allow conversion of 100 million Preferred Stock shares on a 15 to 1 conversion factor to common shares. Guess what will be hitting the market in coming months - potentially as much as 1.5 billion shares.
That's transparent?
As for not being a P&D, and not being a scam, well....what are they then? Of course they are.
Do you really think they'd issue a PR to announce a failed JV?? Not very likely, it would have a negative impact on investor's confidence. They'll just let it slip from memory. Since neither WSRA's or GDSM's last PRs mention anything about the JV between each other, it is a good bet that the JV is history.
As for the LOI, it could lead to another JV, or not. Who knows? But what has really changed by replacing WSRA with yet another JV partner? GDSM will still be unable or unwilling to fund any exploration or development work. Remember the five-gallon bucket sampling debacle? And with the Shoshone property, any development would require dealing with California's mining laws which are even tougher to deal with than Arizona's.
I couldn't have said it any better than hellcatjr did:
LOIs = useless. Non-binding agreement and IMHO simply fluff. An LOI does not have any legal basis for binding both parties to committing to the deal.
What do you mean it was WSRA's failure to provide their own report? It was up on the GDSM website for what, 10 weeks or so? Plenty of time for WSRA to say something and get it removed. I think both WSRA and GDSM were okay with the posting of the report on the GDSM website until the complaints were lodged with the AZBOTR.
Then, somebody got cold feet.......
Warmy - it was 6 AM and I was heading out the door to go look at a real gold mine, not the POS Gold Star and Azurite Mines. I assumed it was another stinkie pinkie and did not have time to do the research. But, I guess the letter of interest is from a company privately held - thanks for pointing that out.
How soon the Gold Star and Azurite pass from memory here - just amazing! A Letter of Interest apparently is all it takes to get everyone all atwitter with excitement! My question is that if GDSM could not fund the proper exploration at the Gold Star and the Azurite, how will they deal with this new prospect?
Okay, private company, whatever. But the deal with WSRA is done in my opinion.
Stick a fork in the WSRA/GDSM JV - it's done! Done, as in finished. All the suspense over the Gold Star/Gold Crown bucket sampling results, and then the whole Azurite Mine fiasco. What a joke!
Now, GDSM has a "letter of interest" from another pinkie with a mining property in California? If you thought mining rules and regulations were tough in Arizona, try California!
That's probably what "indeed all is well" means - all depends on your perspective, whether you are the scammer or the scammee.....!!
Maybe the County Assessor database is lagging behind with updates? If WSRA bought the Azurite in 3rd Quarter 2012, a simple phone call to the Assessor would tell the story. If they say it is still the Wharton's land, then what does it mean to buy the Azurite? What did they really buy if it wasn't the real estate?
So, where's the update? Unless there was something factually challenged in the original report, why was it removed from the website? Why not leave it until the update is available?
Nothing is ever for sure with PRs. But the fact that GDSM is mentoned nowhere in the PR tells me that GDSM has been cut out of the deal. And GDSM has not issued their own PR today supports this conclusion. Not to mention the removal of the Jenkins report on the Azurite from GDSM's website two weeks ago.
Not likely. The JV with GDSM appears to be over, and WSRA is leaving them behind. GDSM will find it hard to issue a PR unless they quickly find someone else to provide a mining property to promote.
There is no legitimate reason for that to happen, according to the guy that I know that knows a guy that knows a guy. LOL!
Seriously though, this is a scam, they have no gold, and the only reason this might go up is if they mount a huge pump campaign and suck(er) in some new money.
Example of pump using false information. Check out this quote from http://pennytipster.blogspot.com/ which was posted on their website in May 2011, at the highpoint for Hondo Mining's stock price (HMNC) last year:
HMNC owns the Tennessee and Schuylkill Mines in Chloride, Arizona. The Tennessee Mine was the LARGEST producing gold and silver mine in Arizona history!
This is a pinkie, and no 8K is required for GDSM. They can say whatever they want in their filings and PRs. The TA is gagged, so no way to know for sure what their A/S is, but there is the potential that 100 million shares of Preferred Stock can become 1.5 billion common shares.
I can't claim to have found GDSM's State of Florida filing - someone else a little more inquisitive than me found it. This company has been particularly un-transparent in their filings and PRs, and the only way to find out what is really going on is to dig deeper than normal.
I know you don't get into mining stocks much, but there is a long and sordid history here. This is a company that has posted appraisal reports and technical reports on their website that have been prepared by individuals claiming to be registered engineers (and aren't). This is a serious violation of State rules regarding who can say they are an engineer, and investigations are on-going.
One of the reports was yanked off their website last week with no explanation other than the report is being "updated". Yeah, right - someone got nervous!
When you get a chance, tell us what you think about the 15:1 conversion for the Preferred Stock announced by GDSM in August. Well, not exactly "announced" - GDSM did not tell shareholders when they did it, and have still not told them. It was found by someone with a sharp eye on corporate filings in the State of Florida.
The link is in the i-box just below the reported share structure.
That end of day spike in the GDSM price is meaningless, because it will even out to its true level the very first thing the next day. Purely psychological.
You're right, I have noticed the last minute buy every day on GDSM, and on the other shady mining stocks that I pay attention to. I think it is called "painting the close", right? I assume it is for a psychological boost to investors, to show confidence in the stock, etc.
With 4-5 million shares trading hands daily on GDSM, how hard would it be for someone to dump 1 million shares a day (or maybe every few days) that they obtained in a 15:1 conversion? Would it be noticeable? And how long would it take to dispose of, say, 120 million shares? You know, the ones they converted from 8 million Preferred Stock shares they acquired via a $50K check this summer?
I wondered if this was the case about "accumulation" that has been touted on this board for weeks. Constant accumulation supposedly, yet the stock price has varied very little. Thanks for pointing this out.
What do you think the effect of 900 million new shares hitting the market in coming months will have on accumulation? In case you haven't followed GDSM closely, they filed a notice in mid-August to the State of Florida indicating that there are 60 million Preferred Stock shares that can now be converted at a rate of 15 common shares (thus 900 million shares potentially).
And now, with GDSM's partnership with WSRA in obvious difficulties and possibly over with, I can't imagine what the next PR could possibly say to raise investor's spirits.
Just curious how some folks seem to have information that is not posted anywhere, either on WSRA's or GDSM's PR's, pinkie financial filings, etc. Especially when it seems to that the Lovitos have gone completely silent. Tends to make me believe that the information is not real. And of course, we all know that the only "real" and verifiable information is the PRs and pinkie financial filings, right?!
Is this what you mean?
In addition, we are currently updating geological information on all properties to enhance their fair market value.
Do you have information about the updating of the Azurite report other than what is posted on the website? What needs to be updated? Do tell....
Also, why would GDSM remove a report from their website, pending its update? Was there something incorrect ("factually challenged") in the original Azurite report? Wasn't it good enough to keep investors informed, pending its update? Or did someone get nervous about the on-going investigations against the authors of that report? Will the updated report come out unsigned?
Also, what other reports are being updated? Any timing on the release of all these updated reports? Will the results from the Gold Crown sampling be released? You haven't been talking to the stepbrother of a second cousin of one of the mine engineers that we have heard so much about in the past, have you?
Officially yes, but unofficially, do you think that owners of those convertible shares are really just going to sit on them forever? They are either converting, or will shortly, in my opinion. And how will anybody know since the TA is gagged?
Makes you wonder how many don't get caught. Even with the NI 43-101 process in place, there are obviously many ways to cheat the system and walk away with big bucks. What, no helicopter for the geologist to jump out of this time? They should make it an option.
But without any controls at all, as we see on OTC stocks like GDSM, DGRI, SRCH, etc. it is a license to lie and steal, in some cases for years and years and no end in sight.
Yes, the JV between GDSM and WSRA appears to be over. No stockholders meeting, no sample results at the Gold Crown, no updates on the Azurite, less and less info on the GDSM website. Pulling information off a website is not just a random act - there is a pretty obvious reason.
When the "funder" does not come through with the money to fund even the most simple of sampling programs, it does not bode well for a JV. WSRA filed a Plan of Operations in May for 25 surface samples because they could not get funding to do the necessary archaeological and biological studies at the Gold Crown. As ineffective as 25 surface samples were for 320 acres, they couldn't even finish that sampling!
And where are the results?