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To be fair about the permit situation with GDSM, I looked at their last press release (May 17th). They do talk about permits a bit:
Additionally, the joint venture announced that Western has received approval for the Mineral Exploration Permit which allows for further sampling and exploration of the claims.
Approval has also been received from the State of Arizona for our Plan of Operation and the joint venture has refilled the state leases for the year 2012-2013.
That's probably true- I forgot about the folks that read but do not post. I guess my comments would be more about the vocal minority, who tend to have very strong opinions but not much sense.
None of this matters to the GDSM investors for a couple of reasons. As with any penny mining stock, the more sophisticated ones are counting on the stock price to jump every time there is a PR, and they are playing that game. The less sophisticated are caught up in the hype and don't understand the reality of what it takes to make a mine. They're the ones that will fall the hardest when the bottom drops out.
That 1964 report is a real treat. I have wondered what that Southwest Institute really was, but have not found any other links to it. Probably a long-defunct scammer group.
As for permits, I am not sure where they stand. Their PR's don't give details regarding permits. For a placer mine, it is far easier to permit than a hard-rock mine - no Aquifer Protection Permit needed. Still, they are probably a year away from any BLM or State permit to produce (assuming there is enough gold to warrant production). So much for "production next quarter" as some of the GDSM folks are touting.
No. But I know what it takes to permit a placer operation like GDSM/WSRA are proposing. If you are going to put your entire faith in their "presentation" and not do your own research regarding the permit process, good luck.
Hopefully the PR will not only have detailed sample results, but permit status as well.
Thanks Dunphy, figured you would know something about it. No drill holes - par for the course.
I think I previously described this geologic description as "gobbledygook" - it is as though someone took a geologic dictionary and strung a bunch of words together.
I wonder what Dunphy would think of this - I seem to recall he is a barium resources expert.
"Under existing US law, embodied in SEC Industry Guide 7, and based on the reporting standards set forth by the US Society of Mining Engineers, the Gold Star Ore Reserves would be characterized as Proven and Probable Reserves."
Thank you, lmcat, this is the most crucial page out of the two NOVs. It lists some of the items needed to be in compliance for their discharge pond - little things like engineered drawings, plans, lab analyses, etc.
The Stormwater Plan that needs to be done for the other NOV is relatively easy to do, but to design and build an engineered discharge pond - not so easy! It will mean enrollment in the full APP process, and could entail putting in groundwater monitoring wells, periodic sampling, lots of testing (groundwater, the tailings, the dumps, the discharge water, etc.). I doubt Hondo has the ability to pull it off, and their few remaining investors will certainly be unhappy when they find out how long it will all take. I see Hondo walking away (in the middle of the night) at some point in the near future.
For those of us who know what getting an APP NOV entails, this means the end of any attempt by Hondo to "process" their worthless tailings. Hondo has not acknowledged this as a material event and has not filed an 8-K. Their "long" investors will certainly not be told anything by Hondo.
And for certain posters who, several weeks ago, were threatening lawsuits and tracing of IP addresses, etc. - here are the NOVs, as promised, for your reading pleasure. Enjoy!
Full copy of NOV #1 and NOV #2 coming soon (as soon as I figure out what is wrong with the files).
So, Hondo filed an 8-K for these legal actions, but not for the recent ADEQ NOVs which shuts them indefinitely? I would say that being shut down until they obtain an Aquifer Protection Permit definitely hampers their ability to produce "revenue".
Not that they would ever produce any gold from tailings that have very little to begin with. But, a regulatory NOV that shuts them down is definitely something that an 8-K should be filed for.
Hey, it would even be a good excuse they could use for their failure to produce any gold - they could blame it all on those darned regulations.
Once again with the overly-optimistic schedule for production. Do they have a plan of operations in place for production? No. Both the State and the BLM frown on production without permits.
Have they released even preliminary sample results? No. And yet you think they'll be producing gold in a month?
Just stick to the program as outlined by GDSM/WSRA, and don't give skeptics like me an excuse to throw in a jab or two. I'd be happy to be a silent spectator if it weren't for stuff like "next month is August and hopefully small scale production".
Thanks, appreciate the kind words of advice. Just a reminder, this is a public forum. As soon as I see some FACTS regarding GDSM and the Gold Star claims, we can chat again. Looking forward to the upcoming sample report in the next couple weeks. Maybe there will be FACTS, maybe not.
I am not a big fan of GDSM/WSRA because they are peddling a property using ore reserves numbers based on nothing. Why would I contact them? I know what they used for calculating their "reserves" and it is a joke. It is not information only I have - but I doubt few stockholders have taken the time to look at it and try to understand it. As a stockholder, you should hold them accountable.
My point was that stockholders should read the material released by WSRA and GDSM and quit making stuff up.
But, since you've asked my opinion about whether GDSM is a scam, I will start by saying that it is a penny stock. Strike one! The "reserves" figures are based solely on a nearly 50-year old report with no supporting documentation (assays, etc.) Strike two! The appraisal report (Stoddard, 2009) issued by the owners of the claims is a fabrication, and a violation of Arizona Board of Technical Registration rules. Strike three!
Having said all that, good money can be made off GDSM if you time things right. Good luck!
No, that is not true, bauls. GDSM and WSRA have stated that they are counting on a large volume (6.75 million yards) with a relatively low grade (0.025 oz/yard) to warrant mining. Regardless of what they are basing that estimate on, that is what they have stated.
You don't just "take a chance and mine". A startup mining operation takes a lot of capital. If they are hoping to stumble on high grade pockets without having the lower grade material verified by sampling, they might as well throw their money (actually your money) into the wind.
Not bashing GDSM or picking an argument, but you might benefit by reading their press releases or the Jenkins Executive Summary.
I understand your point. You obviously think I have some agenda but you might be unsure what it is. However, a report written by the owner of the claims has a very clear agenda.
Do you really believe what you just said? If GDSM says there is gold, there must be gold?
I guess what you are implying is that every penny stock is for real. Because what they are all saying must be true because they will certainly go to jail if they are not truthful?
No reports yet, and how do you know who is going to SIGN them?
I don't think there is anything forcing GDSM to do so, as long as they are careful to avoid violating the SEC definition of reserves, etc. Given their apparent faith in the gold being there at the Gold Star claims in economic quantities, I doubt the average GDSM stockholder cares about feasibility studies, assays, etc. - just gets in the way of all the excitement.
No, please re-read what I just said. What I said is that a well-done report, by a third-party professional, with well-documented sampling will meet with far less skepticism. Every report should be read with a critical eye, even a well-done report. If it is professionally done and is credible, go ahead and rely on it.
And, I have never said there is no gold at the Gold Star claims.
As for mining in October or September? Are you kidding me? They have not issued a single sampling report yet, and you think they can go from preliminary sampling to production in 3 months?? I admire your optimism, but do you have any idea how long a Plan of Operations takes to prepare and get approved? A year at least, assuming there is enough gold there to justify it.
No problem, not rude at all. If you are okay accepting reports and "appraisals" written by the claim owners, that's your right (and I am talking about the Executive Summary written by Jenkins and the Stoddard appraisal report).
If the new report is well-done, signed by a third-party professional, and the sampling is well-documented, it will not draw the skepticism that the old reports have. Best of luck!
You might want to consider the source. Reports written by the claim owner are maybe just a little "biased"? But you are right, you can either believe them or not. I don't.
Where did you get that figure of half a billion dollars in gold at the Gold Star claims? Show me one credible report signed by an impartial, registered professional.
An awful lot of energy is being spent today touting the WSRA update that says almost nothing new. No results yet, just talk of "outlining several sample locations". What does that mean to outline a sample location? Sounds to me like they are stretched thin peddling all their other Gold Tech properties, and making very little progress on Gold Star. Must be all that difficult "train" slowing them down.
Looking forward to seeing this sample report in the next two weeks.
Yet another pump and dump. Liberty Gold's estimated resources of 8.09 million ounces of gold equivalent in their Arizona properties? Without a single drill hole? What did they do - interpolate to the center of the earth? Comical......
Sometimes the bigger the lie, the more it attracts attention. Most people cannot relate to what an ore grade is, or what it really means relative to mining cost, or even how the recovery rate may greatly affect ore grade. Or that there are no credible reports detailing how the sampling was done, or assay sheets from a reliable lab. Seems to be a common theme amongst placer stocks, especially in the Skull Valley area.
The Hondo community on IHub may be small but there are (or were) some very opinionated members. In fact, I seem to recall some legal threats directed at me, along with discussions about that Curis lawsuit involving IHub postings. Awful quiet now....... not even an apology! What a surprise.
Today marks the deadline for Hondo to respond to ADEQ's NOVs. Wonder if they'll submit something?
Nevertheless, there is a lot of room for skepticism but I think now days it is more from the fear that the final process won't work for some reason rather than the credibility of the founders and the geologists findings and reports in the past.
And, I see that the Nicaraguan JV was announced today! So, being an official JV, what does it mean that the guy running RadarNica is the same guy that posts on DGRI at IHub?
Also love this....
The Company has completed the ore-gathering phase of its bulk-sampling program
The whole Nicaragua JV thing was too weird, and now even weirder (and probably a SEC issue now?). If no JV has been signed, are there any rules being broken?
Great research by Chad!
I call it as I see it, and posts about "nickle" and lithium, and inside information from "kin" do not lend any credibility to discussions about GDSM. As for getting in my car and seeing the site, I have. Have you?
You're right, it does get warm in Skull Valley. But, according to NWS, it is only 89 degrees mid-morning and was in the 60's earlier. Try working in Yuma or Bullhead City this time of year - I will take Skull Valley anytime.
The point is that they have been working on Phase I and Phase II for months - why is it taking so long, and why have they been so tight-lipped about what they are doing?
It is tough to understand how the stock price stays up, considering that Hondo is not able to run (legally). If you were a stockholder, and you knew that Hondo was in violation of environmental regulations and were prohibited from running their "process" indefinitely, wouldn't that be of concern?
Sorry for your loss, but I think you are not doing the GDSM board any favors by posting made-up stuff about "core samples", and about "nickle" and lithium. You don't take "core" samples from a placer. And it is doubtful that they would be wasting their time and money assaying for nickel and lithium. Even if they did analyze for trace elements like nickel and lithium, these elements show up at low levels in soil/rock anywhere, so nothing to get excited about.
I really doubt there are two engineers and a geologist working on the Gold Star project. Your "Kin" is feeding you BS.
As for the heat, I have worked up in that area this time of year, and it is not that bad (relatively speaking). Rarely breaks 100 at that altitude (4300 feet) - it is not the low desert. If they are not working because of the heat, maybe they need to find a new crew. Reports of 118 degrees from another post today are not believable either. Maybe in Lake Havasu, but not Skull Valley.
Hondo received two Notices of Violation on May 23rd, 2012 from the Arizona Department of Environmental Quality (ADEQ), Water Permits Section. During their inspection of the Hondo facility on May 8th 2012, the following violations were observed:
1) Hondo does not have the required Multi-Sector General Permit for Storm Water control on the property.
2) Hondo has disturbed historic tailings which therefore are no longer grandfathered and no longer exempt from regulation. Hondo is required to have an Aquifer Protection Permit (APP) in order to process the tailings.
Hondo was given 30 days from receipt of the NOV to address the two above NOVs. According to the ADEQ inspector that I spoke to, they are giving Hondo until Friday, June 29th to respond but they had not as of this morning. If no adequate response is received, the case will be turned over to Compliance for enforcement. Even with a response, Hondo will not be allowed to operated without the APP.
The inspector also told me that Hondo has large generators on-site that require air quality permits. He thought maybe the generators had prompted an NOV from the Air Section at ADEQ but was not sure, since he works in Water Permits.
What does this mean? Hondo cannot process the tailings until their APP is in place. Typically, for mining operations, an APP can take a year or two to be issued. In Hondo's case, I doubt they will ever be able to comply with APP regulations, which are rather strict when it comes to sulfide-rich, lead-rich tailings such as these.
You would never know any of this, based on Hondo's PR this morning:
Bill Miertschin, Chairman and CEO of Hondo, said, "We are extremely happy that the long-anticipated day has arrived, and that we have begun commercial processing. Our expectations run high as we continue to initially load the circuit and bring it up into full operation."
There will be no production by Hondo for at least a year, and probably never (because there is little to no gold or silver either). The ADEQ issued the NOVs to Hondo on May 23rd, details to follow....... sorry (not really).
I have no idea what it means. All I know is that Hondo is a scam.
The historic production data shows that there is next to no gold (or silver) in the tailings. The guys that ran the mill at the Tennessee Mine were actually pretty thorough, and sampled not only the head grades but the tailings grades. In the 1940's the tailings ran less than 0.010 oz/ton for gold and around 0.10 oz/ton for silver. Their process was remarkably efficient, and there is no way that Hondo's claims of 1-3 oz/ton gold in the tailings makes any sense.
The Tennessee Mine mill supervisor would be turning over in his grave over this garbage.
To be fair, I guess GDSM never claimed that photo on their website is any place in particular.
To be fair, I guess GDSM never claimed that photo on their website is any place in particular. But, a person going that website would assume that it has something to do with their one project in Arizona. Maybe GDSM ought to take a few minutes and change their photo to a shot of the gravel piles in Skull Valley.
However, it is unfair to criticize an IHub poster who is just trying to show what a typical copper mining operation looks like, with no claim of it being a particular mine.
Not sure if you have looked at the old reports being used by GDSM/WSRA/Gold Tech as promotional material for the Gold Star claims, but not one of them provides a single assay sheet. The ore "reserves" are based on no assay data.