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Remember, they really have nothing but a lot of paid hype so far. According to an independent source.....
They clearly do not have "proven reserves" as they have not met the legal requirements for proven reserves.
Let me give you an example of an SEC Comment Letter sent to another non-compliant exploration-stage company that illegally claimed to have "proven reserves".
"We note your consulting geologist provided reserve estimates. Please note that mineral reserves for a mineral property may not be designated unless:
• Competent professional engineers conduct a detailed engineering and economic study, and the "bankable" or "final" feasibility study demonstrates that a mineral deposit can be mined profitably at a commercial rate.
• Historic three-year average commodity price is used in any reserve or cash flow analysis used to designate resrves.
• The company has demonstrated that the mineral property will receive its governmental permits, and the primary environmental document has been filed with the appropriate governmental authorities.
Please revise your disclosure accordingly. In addition, please revise your disclosure throughout this document to ensure you do not prematurely indicate mining operations on mining properties before a proper feasibility study and economic viability determination has been conducted."
A bankable feasibility study is not a minor thing. The size and complexity varies by the size and type of deposit, but typically it requires years of work by numerous experts conducting an enormous amount of work (not only exploration to define the resource and grade, but also metallurgical/processing studies to determine the most efficient and cost-effective mining and processing methods, mine design and related engineering studies, environmental studies, including hydrology and animal studies, reclamation studies and plans, just to name a few). And millions and millions of dollars to pay for all the studies that go into a bankable feasibility. Once all of that is taken into consideration, a final feasibility study is a pretty weighty document - hundreds of pages long.
Needless to say, drilling 5 holes and calling it a "proven reserve" is a bad joke.
The reason this is important is that in almost every single case, it allows for massive dilution and share selling schemes.
Zomniac, it looks like there's a pretty good history of paid promotions of this stock, mostly through "third parties" like TI Consulting, Bahadur Investments and a number of other fronts.
Also on Feb 14, the CEO, Al Pietrangelo GAVE himself 1,000,000 Series A preferred shares, each of which has 300 votes and allows the holder to vote on an as-converted basis with the holders of common stock. So he now controls something like 68% of the voting stock by himself.
The reason given in the 13d was listed as.....
Item 4. Purpose of Transaction.
The Reporting Person acquired his shares of Common Stock and Series A preferred stock to acquire control of the Issuer in anticipation of facilitating the growth of the Issuer by future, unspecified acquisitions.
I believe as the sole holder of the preferred shares, he is first in line to pick the bones also.
Does anyone know how many shares were issued to BullQuake and the other touts for the latest pump? Or was it all cash?
Up until just over two months ago, there was no Raptor Resources Holdings. I think everyone is or should be aware of that.
Everyone knows the company ran out of money and couldn't afford to keep paying for Agoracon's service. Nonetheless, they did pay for the service for quite a while, signing at least TWO one year contracts......
"Lantis Laser Inc has agreed to pay AGORACOM Investor Relations $6,000 US per month PLUS OPTIONS for a 12 month contract."
In addition, they issued more than a MILLON shares to Agoracon.
I wonder how many shares Agoracon still holds.
The company compensated Agoracon more than a million shares and signed 2 one year contracts to compensate Agoracom $6000 per month for "services".
According to Agoracon, "Lantis Laser Inc has agreed to pay AGORACOM Investor Relations $6,000 US per month plus options for a 12 month contract."
I don't know why they would lie about that.
Well, to get back on topic, who's your favorite RRHI "stooge"?
Alf, the "Mineral Oil King of Wal-Mart"?
What do you think of his "plan" for the company to become a "pure play". Is it just hype? Smoke and mirrors? A comedy routine? Or do you think he was serious?
Do you think they will really put the Dodge Mine as a asset in Mabwe Minerals or is Alf just trying to pump up the stock prior to the RS?
I don't want to lose sight of the point of the original post which was, the reason they put the Dodge Mine mineral rights under Mabwe Minerals. If it was to boost the RPTN/Mabwe stock prior to the RS, that seems to have failed miserably.
Things don't seem to have gone according to plan, if there is a plan. Like watching Larry, Moe and Curly.....only NOT funny.
Speaking of "stooges", be it 3 or 5, a recent reiview of mining stock scams calls the presence of "stooges" an essential part of the scams.
According to John A. Meech, Director of CERM3 (The Centre for Environmental Research in Minerals, Metals and Materials), The University of British Columbia, Department of Mining Engineering:
Running a scam is a business. It involves a network of associates to work together to operate the overall swindle. Each member of the network has specific tasks to perform. Some of these tasks include:
• Arranging for "experts" to provide credibility (the stooges)
• Writing Press Releases and Investor Releases
• Posting on Internet Chat Rooms such as Agoracon, Yahoo! and Silicon Investor
• Wash-trading to create volume and price trends
• Promoting the stock to clients (the pigeons)
• Selling short
• Buying back the stock
• Distributing the funds generally through off-shore accounts in tax-haven countries
In fact, he identifies the presence of "stooges" as one of the elements of a scam.
He says, "Companies who run scams are always looking for reputable people to stand up for their ideals and provide
their swindle with credibility."
He even confesses, "I was once a "stooge" for one of these despicable companies. Sucked into their cesspool because of personal weakness, I was used to provide their pigeons with assurances that a UBC professor was working to find the gold in their "ore" and develop a recovery technique."
You can read the whole article here.....
http://www.cerm3.mining.ubc.ca/documents/areviewofrecentminingstockscams.pdf
Not according to their last SEC filing.
They can and pretty much do say anything they want on their website an in their PRs. Not that it matters.
They say too many cooks spoil the cake. Perhaps too many crooks can spoil the scam?
Wow! It seems that great minds DO think alike.... { ;^D
That's one of the reasons why it surprised me that they put the Dodge Mine mineral rights under Mabwe Minerals. I suppose they were trying to boost the price of RPTN/Mabwe stock prior to the RS but that seems to have failed too.
All in all, I don't think things have gone according to plan (that is, if they even had a plan). It seems as if they either have no real plan or the three employees/directors executing the "plan" are really the three stooges in disguise.
Cameroon?..... Sorry, I just got one of those mental images of a 007 type device.....A tiny digital camera hidden inside of a macaroon cookie.....Simply bite down on the edge an it takes a picture of whatever you are looking at.....Press the large chocolate chip on top and it silently shoots a poison dart.
According to a recent article in the New York Times.....
According to Zimbabwe’s indigenization law, black Zimbabweans must own 51 percent of shares of foreign companies operating here. About 20 percent of the shares are supposed to go to community trust funds, which in theory will pay for local development projects, and company employees. The rest must go to black Zimbabweans.
But exactly how these aims are to be achieved is unclear. Many of these companies are publicly held, and their shares are not the companies’ to give or sell. On top of that, few black Zimbabweans have the means to buy large numbers of shares at market value.
Still, a handful of companies have already agreed to comply, under intense pressure from Mr. Kasukuwere, a 41-year-old former official of Zimbabwe’s fearsome Central Intelligence Organization.
In March, the South African mining company Implats — whose subsidiary, Zimplats, mines platinum in Zimbabwe — said it would give community organizations interest-free loans, to be repaid from dividends, for their shares, and do the same for employees.
But it said it expected full market value for the other 31 percent of shares required under the law, an amount few private investors in Zimbabwe could muster. Officials from Implats and other companies affected by the new law did not respond to requests for comment.
Government officials say that they will not pay a cent for those shares.
“Our contribution is the platinum they are taking from our soil,” said George Charamba, Mr. Mugabe’s spokesman. “They will get nothing more.”
Syd, there is a good possibility that they will try to sell the dental unit to fund the "gold mine". Alf let it slip a while back when he announced the company would become a "pure play" in the natural resources sector.
In the PR Alf said, "Being recognized by the financial community as a pure play in the hard asset and natural resources sector will allow investors to focus on valuation methods and investing disciplines that are geared toward a specific sector in the marketplace."
A pure play is defined as "A company devoted to one line of business, or a company whose stock price is highly correlated with the fortunes of a specific investing theme or strategy."
For example, Coca-Cola would also be considered a pure play in the beverage business. Whereas Pepsi wouldn't be pure play, because of its Frito-Lay subsidiary.
By no stretch of the imagination could a natural resources AND dental equipment company be considered a pure play. Don't be shocked to see the dental unit be sold or traded off. The big question is how much can they get for it and will it be cash, a swap for debt or a handful of magic beans.....
Thanks 1manband. Something else that bothers me about RRHI is the rather complex structure of subsidiaries. I can see keeping the dental unit, Lantis Laser, separate from the mining operations but the rest is kind of baffling.
Aside from the dental unit, they have an 80% stake in a public subsidiary (Mabwe Minerals, currently called Raptor Network Technologies [RPTN]) and a wholly owned mining subsidiary (TAG Minerals) which holds a 49% stake in a foreign private affiliate (TAG-Z). TAG-Z, in turn, owns Ontage Resources which in turn holds a 10% stake in Slashwood mining. Confused yet?
TAG-Z bought Ontage Resources with shares of RRHI (it was still LLSR at the time). TAG-Z is 51% owned by Tapiwa Gurupira. Ontage Resources was owned by.....Tapiwa Gurupira. Tapiwa Gurupira is one of the three Directors of RRHI and one of the three original pricipals in TAG Minerals.
Zimbabwe has a law, called the Indiginization Act, which states that ALL businesses in Zimbabwe must be at least 51% owned by black Zimbabweans, hence the 49% of TAG-Z.
OK, now the company has said, "TAG Minerals is a U.S. based (incorporated in Wyoming) mineral resource acquisition, exploration and development company, with operations conducted through its operating affiliate, TAG Minerals Zimbabwe (Private) Limited.", and, "Mabwe Minerals Inc. is a mining & mineral company created to optimize the abundant mineral/metal resources of the company's World Class, hydrothermal mountain range home to Dodge Mine located in Shamva, Zimbabwe."
Now, Mabwe Minerals/Raptor Networks is a public company. 80% of the stock is owned by RRHI and about 14% is/was owned by the former creditors of Raptor Networks, and the rest by the RPTN bagholders.
I'm wondering why, in view of the Indiginization Act, they decided to put the Dodge Mine in the 0% Zimbabwean owned public entity, Mabwe Minerals?
Kind of sounds like the three Directors are Larry, Moe and Curly, doesn't it?
Imcat, the Satellite images of the area that I have seen show much sparser vegitation, that's for sure. Doesn't the company give an exact location? I believe they are supposed to.
I haven't looked at SIRG but will if you would like me to. It would probably be quite a while before I could give you any kind of informed opinion though.
I'm a free member so I can't PM you except for happy hour on Fridays. I have already used up half of my posts for the day and I anticipate a possibly busy evening due to the help I received on this board.
I would like to thank everyone who contributed to my knowledge and understanding so far. I look forward to learning more about mining, mining stocks and the special rules & jargon that go with them. Thanks again for sharing your knowledge.
Geological gobbledygook! Nonsense.
It's a Tommy Hilfiger logo. { 8^D
http://greenobles.com/tommy-hilfiger.html
Thank you 1manband for your answers regarding Exploration vs Development and Reserves. I am still in the learning process regarding mining stocks and the terminology and requirements and really appreciate the information.
Another thing that bothers me (perhaps I'm making a mountain out of a mole hill here) is that they announced the "expansion of mineral rights" and despite this statement, no associated Expense or Asset value was recorded in the 10Q covering the period.......
FREEHOLD, N.J., March 15, 2012 /PRNewswire/ -- Lantis Laser Inc. (OTCQB symbol: LLSR), is pleased to announce today that its operating affiliate TAG Minerals Zimbabwe (Private) Limited (TAG-Z) has rapidly expanded its mineral rights to include an additional 50 hectares contiguous and 450 hectares adjacent to its Dodge Mine property. Based on continued discussions with targeted potential partners coupled with industry confirmation of high demand for barite, TAG-Z recently completed Phase I of what their management intends to be an aggressive mineral rights expansion program. With assistance from the previous mine owner, specific areas were acquired based upon undocumented visible outcroppings. In addition, both local and international geologists agree that the directional flow of the hydrothermal barite deposits aligns with the physical properties recently pegged and registered with the Zimbabwe Ministry of Mines.
http://finance.yahoo.com/news/lantis-lasers-operating-affiliate-tag-123000608.html
Am I making a mountain out of a mole hill or is there something fishy here?
I posed the question of Exploration vs Development to the Mining Company Research Board as several of the posters there have long experience with mining and mining stocks. The following is a pretty comprehensive answer by 1manband.....
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They are an exploration stage company. You are correct.
"Exploration" and "Development Stage" are terms with specific legal definitions. Under SEC Industry Guide 7, a "Development Stage" mineral company MUST have PROVEN RESERVES AND be engaged in the preparation of such reserves for extraction. "Proven Reserves" also has a legal definition, which means the legal and economic feasibility of the mineralization has been established. That means one thing and one thing only - a bankable feasibility study prepared by an independent third party (or parties) has been completed.
RRHI has no reserves as defined by the legal definition of reserves. Therefore, they are still at the exploration stage. No doubt about it. Companies without proven reserves can not legally be called "Development Stage".
Now, here is where it gets sticky. Technically, Raptor's non-mineral subsidiary IS at the development stage, as the term has a different meaning for non-resource companies. Therefore, prior to entering the mineral exploration sector, they would have been a development stage company. HOWEVER, Raptor very clearly states in their filings they are not currently funding their dental subsidiary and are now concentrating on their mineral exploration company. Therefore, they can no longer call themselves "Development Stage" as mineral exploration is now their primary business. If they continue to call themselves "Development Stage", the SEC will eventually catch up to them and force them to change it. Assuming their auditor doesn't figure it out first and make them change it.
They clearly do not have "proven reserves" as they have not met the legal requirements for proven reserves.
Let me give you an example of an SEC Comment Letter sent to another non-compliant exploration-stage company that illegally claimed to have "proven reserves".
"We note your consulting geologist provided reserve estimates. Please note that mineral reserves for a mineral property may not be designated unless:
• Competent professional engineers conduct a detailed engineering and economic study, and the “bankable” or “final” feasibility study demonstrates that a mineral deposit can be mined profitably at a commercial rate.
• Historic three-year average commodity price is used in any reserve or cash flow analysis used to designate reserves.
• The company has demonstrated that the mineral property will receive its governmental permits, and the primary environmental document has been filed with the appropriate governmental authorities.
Please revise your disclosure accordingly. In addition, please revise your disclosure throughout this document to ensure you do not prematurely indicate mining operations on mining properties before a proper feasibility study and economic viability determination has been conducted."
A bankable feasibility study is not a minor thing. The size and complexity varies by the size and type of deposit, but typically it requires years of work by numerous experts conducting an enormous amount of work (not only exploration to define the resource and grade, but also metallurgical/processing studies to determine the most efficient and cost-effective mining and processing methods, mine design and related engineering studies, environmental studies, including hydrology and animal studies, reclamation studies and plans, just to name a few). And millions and millions of dollars to pay for all the studies that go into a bankable feasibility. Once all of that is taken into consideration, a final feasibility study is a pretty weighty document - hundreds of pages long.
Needless to say, drilling 5 holes and calling it a "proven reserve" is a bad joke.
>Quote:
Does it impress a prospective investor/sucker more if they appear to be that much closer to production by calling themselves a development company?
Absolutely! Many of the people that are buying these OTC resource companies understand very little about mineral exploration and production. Therefore, many of these companies do everything they can to convince people that production is just around the corner. Which it very rarely is, as the vast majority of these companies have nothing to produce and are performing no legitimate exploration work at all. Their real business seems to be selling stock, not mineral exploration. They give legitimate mineral exploration companies a bad name.
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=76225816
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=76225966
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=76226260
Well, you have a good night. I wish you the best of luck.
Yeah, that's my general feeling too.
Have a good night.
Well, according to their latest 10Q, they are not in production, they have no mining equipment and they are not engaged it preparing the area for mining operations beyond a gravity mapping program with data to be used for the drilling program.
Actually, there's not even that much detail in the 10Q. Some of that is from an earlier PR.
>10Q:
http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=8630561
>PR detailing Gravity mapping/drilling:
http://finance.yahoo.com/news/lantis-lasers-operating-affiliate-tag-123000608.html
"With the Bouguer gravity anomaly modeling data, the company will immediately institute a customized diamond core drilling program to establish bankable proven reserves across its mineral type deposits with first focus on barite."
>PR of original mineral rights purchase:
http://les4lb1.blogspot.com/
"The smallest mountain was partially drilled in 1966, consisting of only 5 drilling holes with related ADIT portals. The results of the drilling program indicated that there were proven reserves of 359,000 tons of barite, 1,000,000 tons of limestone and 150,000 tons of talc and inferred reserves of 600,000 tons of barite and 5,000,000 tons of limestone."
The company has not released any report other than that quoted from the PR and some even sketchier information in the PR announcing theacquisition of mineral rights to some property adjacent to the original.
http://finance.yahoo.com/news/lantis-lasers-operating-affiliate-tag-123000608.html
I just realized that there is no Expense or Asset reflecting that "acquisition" in their 10Q for that quarter!
Hmmmmmmmmmm......
Yes, the term "Bankable Feasability Study" may be misleading as it does not mean that you can "take it to the bank' or that the project is even feasible. Here is a link to a pdf that elaborates.....
http://www.pincock.com/perspectives/Issue57-Feasibility-Study.pdf
If you would like more information, I have a number of links I can share but I don't have them saved so would have to go back and search them out again.
They announced "Proven Reserves" when they anounced the purchase agreement of the property with this....
"The smallest mountain was partially drilled in 1966, consisting of only 5 drilling holes with related ADIT portals. The results of the drilling program indicated that there were proven reserves of 359,000 tons of barite, 1,000,000 tons of limestone and 150,000 tons of talc and inferred reserves of 600,000 tons of barite and 5,000,000 tons of limestone."
They have shown no mine development expenses in their financials and, as of 3/31 have no assets other than $5700 Cash, $150,000 "Investment" for shares issued for the purchase of Ontage Resources (a company owned by the directors of RRHI and worth "closer to $5000" according to a response to eht SEC), $8,688 worth of computer equipment, and $433,000 listed as "Mineral Rights".
No mining equipment, no development or equipment expenses listed.
http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=8630561
Thank you for your responses.
No, they refer to themselves as:
RAPTOR RESOURCES HOLDINGS INC.
(A DEVELOPMENT STAGE COMPANY)
As they are now primarily a mining company, I believe this is a misreprepresentation.
I am having a difference of opinion with another poster on the RRHI board. He maintains that the company, RRHI, is in the Development Stage because, "RRHI has referred to itself as a developement stage company in it's last report because they are ENGAGED IN THE PREPARATION OF AN ESTABLISHED COMMERCIALLY MINABLE DEPOSIT (RESERVES) FOR ITS EXTRACTION. Said reserves were proven by the parameters set forth in IG-7, i.e. the 1966 drilling report, the previous mine owners, and the fact that the Dodge Mine was a PRODUCTION STAGE MINE."
I contend that because they have listed no mining assets or development expenses and they are currently conducting a gravity mapping program on which to base a drilling program, they are still in the Exploration stage.
Does anyone have any thoughts or a definitive reference?
THX
I am having a difference of opinion with another poster on the RRHI board. He maintains that the company, RRHI, is in the Development Stage because, "RRHI has referred to itself as a developement stage company in it's last report because they are ENGAGED IN THE PREPARATION OF AN ESTABLISHED COMMERCIALLY MINABLE DEPOSIT (RESERVES) FOR ITS EXTRACTION. Said reserves were proven by the parameters set forth in IG-7, i.e. the 1966 drilling report, the previous mine owners, and the fact that the Dodge Mine was a PRODUCTION STAGE MINE."
I contend that because they have listed no mining assets or development expenses and they are currently conducting a gravity mapping program on which to base a drilling program, they are still in the Exploration stage.
Does anyone have any thoughts or a definitive reference?
THX
I think perhaps there may be some confusion here between "Exploration" and "Prospecting". While prospecting may be considered an early part of the Exploration Stage, the Exploration Stage may be more properly defined as:
2. Exploration (Ore body) - Defining extent and value of ore (mapping)
a. Sample (drilling or excavation),assay, test
b. Estimate tonnage and grade
c. Valuate deposit (Hoskold formula or discount method):
present value = income - cost
Feasibility study: make decision to abandon or develop.
Only after the above is complete will a legitimate company spend money on the development necessary to enter the Production Stage.
I did not realize that RRHI was a Canadian listed stock. I've been going by the US guides, rules and literature.
So are they on the Toronto exchange or Vancouver?
According to US CPAs, for public companies engaged in mining, that a development stage company is “engaged in the preparation of an established commercially minable deposit” but is not yet in production. All other mining companies not producing revenue are in “exploration stage” – in the search for mineral deposits.
Gravity mapping is clearly a project to establish the possible extents of a mineral deposit and NOT preparation of an established commercially minable deposit.
According to Alf himself, "The mineral gravity survey is targeted for completion by mid-second quarter utilizing the latest in electronic, automated 1 micro-gal resolution meters wirelessly transmitting digital data to a GPS equipped data logger using proprietary software performing real-time error checking, multiple sampling and averaging of gravity readings that enhances accuracy and eliminates manual entry errors. With the Bouguer gravity anomaly modeling data, the company will immediately institute a customized diamond core drilling program to establish bankable proven reserves across its mineral type deposits with first focus on barite."
They have not yet even completed a Bankable Feasibility Study. Therefore RRHI is still in the Exploration Stage. (By US definition)
BTW, gravity mapping and drilling are Exploration Stage projects.
Development Stage projects would include contstruction and installation of infrastructure, plant and equpipment, removal of overburden. etc.
Production Stage does not commence until the mine is actually producing economically viable quantities of of ore.
Thanks, no worries on that score. { ;^ )
I don't feel it's a complete waste of time. Often a post in response to someone else is not intended to convince him of the facts but to present a factual rebuttal for those that do care.
I know there are people who cannot be convinced, ever. I ran into that on the Yahoo RPTN board. I began posting there that it was a bad investment way back when it was over $2 a share. Some listened and investigated for themselves, some did not.
Some of those that did not listen said I was wrong all the way down and are still arguing, even though the stock has gone from $2+ to less than half a cent! Some of them even post here. { 8^D
As 1manband said, "No one can make them read the facts and learn the truth, but I think at least someone should make the facts available."
First off, I CLEARLY stated, "That makes them an Exploration Stage company."
It was bolded and in RED
I don't know how you missed that.
They have disclosed NO development of the property. The only disclosure is of PLANS to begin gravity mapping in the future!
More from IG 7.....
(b) Mining Operations Disclosure. Furnish the following information as to each of the mines, plants and other significant properties owned or operated, or presently intended to be owned or operated, by the registrant:
[Sections 1-3 omitted by me for brevity]
(4)(i) A brief description of the present condition of the property, the work completed by the registrant on the property, the registrants proposed program of exploration and development, and the current state of exploration and/or development of the property. Mines should be identified as either open-pit or underground. If the property is without known reserves and the proposed program is exploratory in nature, a statement to that effect shall be made;
(ii) The age, details as to modernization and physical condition of the plant and equipment, including subsurface improvements and equipment. Further, the total cost for each property and its associated plant and equipment should be stated. The source of power utilized with respect to each property should also be disclosed.
Where is this information? Can you provide a link please?
Enough for now but more later.
"What is especially questionable is claiming reserves without the legal requirements to do so. They cannot legally call anything a "reserve" without a bankable feasibility study proving any mineralization is present AND can be extracted legally and economically. I see no bankable feasibility study here, especially if they are basing the "reserves" on a handful of almost 50-year old holes. If management doesn't understand the legal requirements of a reserve, they have absolutely no business running a public resource company. And, if they do understand the legal regulations and are still making these claims, they are clearly not qualified to run a public company for very obvious reasons."
Have you seen "a bankable feasibility study"? Can you please supply a link to it?
To put a little more context into the discussion....
'1manband' posted
> I don't know how long you have been on I-Hub, but it won't take you long to discover the absolute shocking lack of knowledge and naïveté of posters regarding mineral exploration and mining. One of the most common is that people don't understand what is required to bring a property to production. They think the first sign of gold in samples guarantees a property is absolutely full of gold, can begin production immediately, and will absolutely make them all rich. Reserve categories, feasibility studies, and permitting never enter into the discussion. Unless we are the ones to introduce it. If nothing else, bringing the facts and some sanity to the discussion may not always be welcome, but I think it is important. Because if the posters and readers are not exposed to the cold hard facts, they will never understand the process and will continue to fall for BS, pump and dumps, and scams. No one can make them read the facts and learn the truth, but I think at least someone should make the facts available.
For some reason people don't realize pictures are meaningless, especially because so many scams steal the photos from other websites. They often photoshop them, too. I can think of several recent scams with great pictures (and sometimes video) on their websites - all lifted from legitimate operations. Pretty common stuff.
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I posted in response
> 1manband, Raptor Resources Holdings, Inc. [RRHI] is one of those companies that use "faked" photos. They recently brought their website on line and there are a number of photos depicting mining operations, equipment and ore that the company simply does not possess.
Company website: http://raptorresourcesholdings.com/
http://www.istockphoto.com/stock-photo-17788441-giant-bucket-wheel-excavator-at-night.php
Bucket wheel excavator - actually belonging to a German coal mining company and located in Nordheim, Germany - Used as wallpaper on RRHI website
http://www.grindingmachine.org/images/sbm/rocksand-grinding-machine.jpg
Picture of ore piles and elevator - actually advertising image from a Shanghai, China equipment company - Used in slide show on RRHI website, Home page
Picture of smelted gold bars and gold dust in collector used in RRHI website Image Gallery - To date, the company has not produced any gold.
Pictures of barite ore look like crushed, cleaned and classified ore dumped on the ground by a truck. The company does not own any mining or processing equipment.
I have the feeling that all the pictures aside from scenery are faked or taken from elsewhere.
The company has announced in a PR, "proven reserves", based on only 5 test bores done way back in 1966! I don't think it's a coincidence that they left out any mentions of this in the official SEC filings.
They recently announced they will begin gravity mapping soon.
Any thoughts?
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'1manband' responded
> I don't follow RRHI, but everything you posted about it is a huge red flag. The unusual company structure and the recent entry into the resource industry with management without resource experience is quite worrisome. Plus, legitimate companies don't use fake photos and intentionally obscure management's background.
What is especially questionable is claiming reserves without the legal requirements to do so. They cannot legally call anything a "reserve" without a bankable feasibility study proving any mineralization is present AND can be extracted legally and economically. I see no bankable feasibility study here, especially if they are basing the "reserves" on a handful of almost 50-year old holes. If management doesn't understand the legal requirements of a reserve, they have absolutely no business running a public resource company. And, if they do understand the legal regulations and are still making these claims, they are clearly not qualified to run a public company for very obvious reasons.
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