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For those looking for positives from the PR yesterday, here you go!
1. 560 tons of ore is a pretty good size of ore to move. RSDS will be able to gain some good experience and hopefully capture some best practices and lessons learned from this overall process.
2. Revenue. RSDS will generate some level of revenue based on the grade of the Uranium (.20% from previous PR). Hopefully this will slow the selling by Berman and the O/S will remain the same.
3. Interaction with Denison Mines via the White Mesa Mill. Hopefully this will be the groundwork for possible future dealings.
4. Statement: "We will continue to follow the plan and look for further success in the remaining quarter of 2007." Hopefully this indicates that there is more news on the way or that the drilling on the Rage claims is looking encouraging.
So there is some positives to take away from this PR as well and lets hope that we will continue to see some good news in the coming months!
Good luck to all!
-faz
NYBob,
That is the thing. Until RSDS management shows me some evidence that this is their mine and not eh mine in Juab County, then there is in fact nothing positive in this PR save the revenue that will come from the sell. I believe that this is the tailing pile and represents a one time sale and not continuous, or even potential for continuous revenue.
Like i said, I don't care about the spelling and really could care less about the wording, however, the statement about the mine is misleading in that RSDS did nothing to make it nor is it really on their claims. If Berman can produce evidence to the contrary I stand by the statements.
I am very LONG on this stock just like you. I will even add to my position once the company demonstrates its forward looking plan and starts building shareholder confidence.
As for being a Mod and promoting a LONG message. I have and will try to, however, all that Berman gives us is tiny glimpses of short term progress. Any assumption or extrapolating on how a one time sale of tailings RSDS found would be demonstrating a level of deception worse than what Berman has done to date.
Thanks for the post and good to see you around.
-faz
Morning Dak and all!
-faz
Loof,
See, I do have a problem with the wording rather than the poor spelling. This statement is not entirely accurate:
"The Contract will allow Russell Industries to remove approximately 560 tons of material containing Uranium from the Maynard Topaz Mine"
This statement would suggest that RSDS actually has a mine that is producing ore. If this 560 tons is in fact a pile of tailings that was found, then the statement is false unless they can prove that the Uranium did in fact come from the Maynard Topaz Mine.
http://investorshub.advfn.com/boards/read_msg.asp?message_id=24198145
All Berman would need to do is give the operational plans for each of the claim groups and some more info about where they are and what the future for them is. NI 43-101 reports will hopefully shed some light, but I am not certain that we will get them in Q4 as was originally PR'd.
Keeping my fingers crossed.
Looks like there is still some interest in RSDS this morning. That is not too bad at all. Is that just me or is the ASK actually having some sign of life at .0002?
-faz
So glad that NXg is not an American Gold producer:
House Democrats overwhelmingly pass US Mining Law reform, gross royalty
House Democrats Thursday slammed the domestic hardrock mining industry in a 244-166 vote to approve a tough new mining law and imposes the world’s highest royalty on mining on public lands.
Author: Dorothy Kosich
Posted: Friday , 02 Nov 2007
RENO, NV -
As predicted, the U.S. House Thursday passed a tough new mining law bill, which mandates that the hardrock mining industry pay gross royalties of 4% for existing mines and 8% for future mines on minerals extracted on public lands.
The National Mining Association says it's the world's highest royalty for all mineral mining.
The bill, which won passage on a 244-166 vote, of which 220 Democrats and 24 Republicans voted in favor, while 163 Republicans and three Democrats voted "nay."
The chief author of the bill, House Natural Resources Committee Chairman Nick Rahall, D-West Virginia, said, Those who support this legislation - the countless locally elected public officials, concerned citizens, sportsmen and women, and taxpayer advocates - bring with them the new century conviction that corporate interests can no longer have an unfettered ability to reap America's mineral wealth with no payment in return. There must be parameters set, and rules adhered to - for if we do not make corrections to the current regime, the ability of the mining industry to continue to operate on public lands in the future is questionable."
Rahall's bill, HR 2262, The Hardrock Mining and Reclamation Act of 2007, also contains a litany of environmental legislation, including expanding the ability of Indian tribes to petition the Secretaries of Interior and Agriculture to withdraw federal lands from entry under the Mining Law, enhances the capability to withdraw federal lands in national parks from mining, exploration and geothermal development, and prohibits mines that would generate perpetual water pollution.
In a news release, Rahall declared that the legislation also "gives the Secretary of the Interior the right to say ‘no' to a proposed mine that would have severe, irreparable impacts on natural resources."
Nevada Congressman Dean Heller, whose congressional district will bear the brunt of the Mining Law reforms, said "As written, the heavy new taxes and burdensome regulations imposed by the bill will severely hurt and shrink the domestic mining industry. Our nation will lose mining jobs in the same way we have lost automobile or steel industry jobs in the Midwest, hurt the seafood industry in some coastal areas, or closed textile operations in the Southeast."
House Republican Whip Roy Blout of Missouri said, "Unfortunately, too many Democrats in Washington hold the view that mining of any kind is bad-whether it's for coal, iron, copper, lead or any other mineral of clear strategic or economic importance."
"The bill Democrats passed in the House today falls perfectly in line with that viewpoint-having decided the best way to put an end to mining in this country is to tax it until it stops. The problem with that plan, however, is that more than 170,000 Americans rely on hardrock mining to provide for themselves and their families-and millions more rely on the minerals they extract to produce everything from dinner utensils to microchips," Blount added.
"Imposing a new layer of taxes on mining-on top of the taxes that are already paid-would hasten the mass-migration of these jobs overseas, while eroding the strategic benefit we get by mining these minerals here at home, " Blunt said. "But Democrats didn't seem all that moved by that argument today, much more concerned with passing another tax increase at the expense of American workers and consumers."
More: http://www.mineweb.co.za/mineweb/view/mineweb/en/page60?oid=39208&sn=Detail
-faz
Right there with ya Walrus!
-faz
Walrus,
Again, I agree with your restraint on expectations and looking at this for the long term, however, there are several things that make me think there is more risk than reward, even long term. I am not here to bash this company as I have been a long time supporter.
I don't think that the 30 miles was a typo. We don't have claims 300 miles away nor is that where the tailings pile is located. I am not even sure where the name of that mine came from and how the pile of ore we have is associated with it.
As for this statement:
"But to say that this company doesn't have probable reserves is incorrect. They aren't provable, but they are probable."
Then why won't Rick quantify the probable reserves. Give me a detailed breakdown of how much probable reserves are on each of the claims sets. Other than the historical report they are drawing on, what evidence do you have of probable reserves? Probable reserves are based on limited evidence and it is a stretch to say we have limited evidence. I hate to play devil's advocate, but I need to with this guy.
What would have been better than this fluff PR about a found tailings pile would be more detailed info about the claim groups. Then give the exploration program for each claim group. Then give the history of the claim groups and any evidence of probable reserves. This is what would move the company in the right direction and bring validity to your statement that the company is showing signs of returns.
I have no beef with you and I am not out to pick a fight, I just don't see anything beneficial at all from this PR or the direction of the company. I am glad that you are holding long as I am. When Berman finally gives a PR that is constructive, informative, well written and answers more questions than it generates, I will be super positive, but until then, I will watch him like a hawk and scrutinize everything he says and does.
Best of luck to you.
-faz
Walrus,
I agree with a lot of what you are saying. The problem with your statement is that the increase in the share count would have been in the shareholder's best interest if it is what in fact generated the revenue. However, they found this revenue by chance. This is not a stream of revenue but a one time sale. There is no reason for any shareholder to jump into this stock for any reason other than playing the short, quick trade to make an easy buck. While I don't disapprove of that, as I have done it before with other stocks, it is not what we need to get this PPS up to levels where we can exit with minimal loss or even a small profit. That will only come if Berman can demonstrate that there will be a stream of revenue. We need to have proven and probable reserves.
Your statement:
"but RSDS is beginning to show signs of return"
is only an opinion and I would argue that in now way is it showing sign of return. My evidence for this is no uranium (other than a chance find of tailings), diluted PPS, incompetence to an unusually high degree, and no communication from the CEO.
Also, as far as uranium goes, I hate to break it to you, but it is not as hot as gold is right now. Until we get a hole mess of reactors around the world and here in the US online, the U308 price is pure speculation and will continue it's pullback.
I am happy that you are so optimistic and I commend you, however, I will be very skeptical until I know more about the way forward and that we have something in the ground to get us there. When RSDS starts to give something back to the shareholders other than bits and pieces that leave more questions, I will be right there with you and support this effort. However, I will not pump this stock as I may have in the past.
Show me some NI 43-101 reports please!
-faz
Walrus,
That may very well be true, but there was nothing done to earn that revenue. My favorite line from the PR today is this:
“The sale of this material will represent Russell Industries’ first revenue since the Company was cleared for quotation in 2006. It is even more gratifying to see this revenue was generated from the Company’s 2007 strategic business plan and business model. We will continue to follow the plan and look for further success in the remaining quarter of 2007,” said Rick Berman, President and CEO.
So what the heck is the business model you might ask. Well:
From August 31st PR:
August was a very busy month for us and we will continue to follow our strategic plan for the remainder of 2007. We have further defined our business model as staking, claiming, permitting, drilling and selling proven and probable reserves
So when the heck did the business model include stumbling onto a giant pile of tailings and sell them to White Mesa Mill for the companies first look at Revenue? This is why I still consider not only RSDS a joke, but the man...errr...coward running it. Do the people that are sucking up shares have any idea of what they are getting into? Do they know that they are better off lighting their money on fire rather than giving it to a con man that has no idea what he is doing.
ALSO
Did anyone notice the change in the description of the company ant the bottom of the PR?
From the September 25th PR:
Russell Industries, a Nevada Corporation, was incorporated in 1997. Russell Industries is a holding company that will acquire assets in the energy, mining, healthcare and financial industries. The Company owns a majority ownership interest in 254 Uranium Mining Claims as of September 25, 2007.
From todays (nov. 1) PR:
Russell Industries, a Nevada Corporation, was incorporated in 1997. The Company is a holding company that will possibly acquire assets in the energy, mining, healthcare and financial industries. The Company owns a majority ownership interest in 254 Unpatented Uranium Mining Claims in San Juan County, Utah as of November 1, 2007.
Unbelievable! What does this mean? Why are they unpatented now? Why has he changed the business strategy to possibly acquiring assets? Is he getting ready to take the Revenue that he got hear and begina new business venture? Hmmmm....?
-faz
Not only is not capable of moving this, this amount of volume isn't even enough to take a peak at .0002's on L2. Unbelievable. Any CEO with common sense would be trying to garner support from the shareholders and shed some light on operations. I am just trying to figure out who is buying into this news? The only thing Berman should be doing is taking the revenue that he generates from this sale and cut the O/S in half.
Not holding my breath.
-faz
rootman,
I think we could report average earnings numbers and the market won't treat NXG too bad. I really think that the main focus of the conference call will be looking towards the future in both Canada and Australia. I am looking forward to the call.
-faz
He had to pay for the PR somehow eh? Looks like he broke even today.
-faz
Seems that a finger has been placed in the leak of the dam holding back the 7 billion A/S.
No selling for a little while by berman...
hmmm...
Righty,
I can't today, I am tied up all day in meetings. Just wrapping up the lunch break right now. Might send out some emails.
-faz
Exactly. This whole tailing pile is just a big ?
DD on the PR today...
HOUSTON--(BUSINESS WIRE)--Russell Industries, Inc. (Pink Sheets:RSDS - News), has entered into a Small Mine Reclamation Contract with the Utah State Division of Oil, Gas and Mining. The Contract will allow Russell Industries to remove approximately 560 tons of material containing Uranium from the Maynard Topaz Mine. A similar contract should be agreed with the National Forest Service within the next week.
What is the Maynard Topaz Mine? Where did this come from? A quick google search brings up some interesting results.
"Maynard Topaz Mine
The Maynard topaz mine, or simply Maynards, is probably the most important of the mineral locations within the Thomas Range. This location was first visited by Maynard Bixby in the 1890s."
http://www.mineralmarket.com/Utahmin/thomas.htm
This mine happens to be near Delta, UT which is very far from the White Mesa Mill
Upon entering into both contracts, The Company plans to remove the material by truckload and deliver it for sale to White Mesa Mill, located within thirty miles of the Maynard Topaz Mine. The Company will then be responsible for reclaiming the approximately one acre site as required by the Utah Mined Land Reclamation Act, Sections 40-8-1 et seq (http://le.utah.gov/code/TITLE40/40_06.htm).
See picture at the bottom for the Maynard Topaz Mine
“The sale of this material will represent Russell Industries’ first revenue since the Company was cleared for quotation in 2006. It is even more gratifying to see this revenue was generated from the Company’s 2007 strategic business plan and business model. We will continue to follow the plan and look for further success in the remaining quarter of 2007,” said Rick Berman, President and CEO.
Russell Industries, a Nevada Corporation, was incorporated in 1997. The Company is a holding company that will possibly acquire assets in the energy, mining, healthcare and financial industries. The Company owns a majority ownership interest in 254 Unpatented Uranium Mining Claims in San Juan County, Utah as of November 1, 2007.
This is very far from White Mesa Mill.
http://geology.utah.gov/online/pi/pi-68.pdf
I would like more info from Berman. What claim set is this mine on? How long has it been there? Give me a map to prove my DD wrong
-faz
Petty, I will answer these questions.
"Do you want to see this stock take off (or have a chance to rebound) or do you want to drive it into the ground to give it no chance to recover?"
Absolutely, as I have given a lot of money to this stock.
"Are you personally better off if pps goes up or not, because you are certainly doing a good job to prevent that?"
Definitely. I hope it does.
Now, can you answer this question.
From today's PR, can you tell me anything positive that would encourage investors to put some money into this for the mid- or long- run?
Because if you can't, then there is no hope of this returning to the PPS levels that we all invested in this. The only thing a PR like this will be doing is to allow those flippers who bought in at .0001 to exit at .0002 for a quick buck.
-faz
makes,
I agree with you. I am going to need to see something more substantial than what was PR'd today. I am just wondering why this was PR'd nationally? This really isn't very good or bad news, it is hardly even news. I would like to know is this a one time gig? Is this going to be the beginning of a constant revenue stream? The PR would suggest that it is not.
I am not going to unload any more money into this until I get the feeling that Berman wants to shareholders to be involved and starts giving us a little information.
Berman, if you are listening, please let us know what the plans for each of the claims sets are. Give us maps, drill programs and finally, please give us an update on the NI 43-101 reports that are supposed to be due out.
Until then, I am going to hold my shares and wait to see what happens. I have given up my negative feelings on Berman and just see him as an incompetent clown that has a really good idea, but no idea how to make it happen.
-faz
Looks like NXG is taking a bit of a breather. Should see this move higher tomorrow.
-faz
Question for the board:
Is anyone actually adding to their positions here?
-faz
If we can cut through the resistance that is forming at 3.42, we are off baby!
I am finally glad to have some excitement back in this stock.
-faz
Good movement on the PPS today. Wonder if we are going to see further movement to the upside if the Fed cuts the rates.
-faz
Me? nah....Berman is doing a great job. I can't imagine any other CEO taking the helm of this company.
*wink*wink*
I have spent the last few days going through all of the reports, PRs and details on the company website and have come to one conclusion. That is...MR. Rick Berman, CEO of RSDS, is by far one of the most incompetent businessmen I have ever had come across. The only two people that are less competent than Berman are his knuckle headed brother Layne and that scumbag Tony Brandt.
I still find it hard to believe that after 30+ PRs, they still can't figure out how to write, structure and properly release them.
I still have a position in this stock, but have completely written off the value of the holdings. The only benefit that RSDS is going to do for me this year is that it will allow me offset some of my profits from other companies with the loss I took when i dumped half at .0005.
I have tried to unload the rest of my shares at .0001 but no one wanted them yesterday, so now I am in the mindset to wait and see if this stock takes a pop a 1, 2 or 5 years from now. I had a look at AUMN the other day and it has gotten killed. If berman played his cards right, he could have avoided any devaluation in shareprice and could be sitting on a sizeable position in RSDS that would be worth some serious money.
Oh well, I am sure his departure from TRSI was no mistake as it only took those guys a few months to realize they were dealing with a man that has no clue to build, operate and grow a business.
I eagerly await his next psuedo PR via the website which IMO (no offense AWARE) does more harm than good seeing as it has information of no value other than confirming the incompetence of the CEO. The funny thing is that you can find more information on this board than you can on the website. That should tell you everything you need to know. I commend you Aware for having the stomach and the patience to deal with a lowlife bum such as Berman.
Wow, now that was a rant, but hey, I stand by it until Berman can prove to me that he has a grasp of what he is doing.
Good luck to everyone!
-faz
dak,
looking forward to it. Opened up a nice position at .18 today.
-faz
Thanks brikk,
I am a big fan of the boards you are looking after. This company seems to have done a 180 as far as business strategy. I like the biofuels sector right now, especially with oil at $90+
-faz
Hey Dak, how goes it?
Have had a look at this one over the weekend and it definitely has some potential. Glad to see some of the same crew here that is in DPDW. I am loving that stock and have enjoyed the ride. I am hoping we can see something similar with this stock.
I appreciate the heads up.
-faz
I just find it hard to believe that there has not been more PR's regarding the hug tailings pile and the potential sale of it. What about all the drill results? Are we not drilling on multiple claims right now?
Berman needs to put out a national PR with very detailed data on the exploration efforts. I would really like to see a detailed section on the website that shows the different claims with maps, any historical data, drill data, tailings analysis, etc.
Aware, any thoughts on if Berman is going to add a "projects" section to the website?
-faz
NYBob,
Thanks for the post. I think that NXG may decide to hold that extra cash in the bank until there is a final decision on KN. Stowe indicated that the government will decide on approval by early Q1 2008. Therefore, if they get it, they will have to figure out a way to finance it and the 140 mil in the bank would definitely help. On the bright side, the fact that NXG has reclassified the KN reserves as resources indicates to me that no one at NXG is holding their breath for KN approval and quite happy to move on. If that is the case, 140 million might go a long way to either further exploration on the newly acquired mines in Australia or look for another acquisition.
Monday is going to be a sitting on the edge of the seat type CC!
-faz
Thanks Talo! I have a feeling that news of drilling will give us a nice bounce. I still can't believe this was $3+ a little while ago. I really enjoyed playing the predictable ups and downs back then. However, the drop in share price has allowed me to establish a nice position and now I am holding this for a couple of years.
-faz
Also...
From Division of Air Quality site:
http://dec.alaska.gov/air/ap/gplist.htm
Permit listing at the bottom.
-faz
Caught this update while surfing:
"Savant Alaska LLC with partner Truth North Energy Corp. have procured necessary rigging equipment for a first quarter 2008 drill program on the estimated 100 million barrel Kupcake Prospect in the Beaufort Sea. The Kupcake well site is in 14 feet of water about three miles offshore in Foggy Island Bay, approximately 8,000 feet west of British Petroleum’s Liberty No. 1 discovery well. BP has pegged Liberty’s recoverable oil at between 120-130 million barrels and is currently moving toward field development."
Link: http://home.businesswire.com/portal/site/google/index.jsp?ndmViewId=news_view&newsId=20070910005624&newsLang=en
-faz
Good video of NXG CEO on BNN show "After Hours":
http://broadband.bnn.ca/bnn/?sid=205&vid=20989
Ken Stowe is on at 35:45 into the video.
-faz
Nice article:
http://www.theage.com.au/news/business/canadian-rescue-for-victorian-goldminer-550-jobs/2007/10/29/1193618796176.html
Canadian rescue for Victorian goldminer, 550 jobs
Barry Fitzgerald
October 30, 2007
CANADIAN miner Northgate Minerals has come to the rescue of Perseverance Corp, Victoria's biggest gold producer from mines at Fosterville, near Bendigo, and Stawell that employ 550 workers.
In an agreed equity and debt takeover deal that values Perseverance at $282 million, Northgate's support for Victoria's rocky gold revival removes the risk that Perseverance could be brought down by operational shortcomings at Fosterville and its heavily out of the money gold hedge book.
Northgate's 20¢-a-share bid values Perseverance's ordinary shares at about $180 million. But the cashed-up Canadian — it is essentially debt free and is holding cash of more than $340 million — will also acquire debt and bank guarantees with ANZ of $33.5 million, as well as ANZ's $48 million hedge book exposure.
The entry of Northgate completes a trifecta of disappointments for the local industry, with production halted at the Bendigo project of Bendigo Mining because of grade concerns and Ballarat Goldfields having sold itself to PNG gold producer Lihir Gold when it found old-timers had mined expected shallow ore positions.
The entry of Northgate and Lihir means that the Fosterville/Stawell and Ballarat projects are now on more solid footings while Bendigo has ample cash to explore/develop new ore positions on its goldfields.
Perseverance told its shareholders that the deal with Northgate was in their best interests, even if the bid price was less than half the 44¢ a share that Perseverance was trading at in February. The full extent of Perseverance's operational problems at Fosterville became clear in June.
The impact of the rising gold price on the group's hedge book did not help. In July, Perseverance raised $26.5 million at a heavily discounted price to see it through its cash flow problems. It was then that other companies began circling.
Northgate has extracted "no shop" and "no talk" undertakings from Perseverance in an attempt to ward off other would-be bidders, as well as a $2.5 million break fee if the takeover does not proceed under certain circumstances.
Perseverance shares rose 4.5¢ to 19¢ in response to the takeover deal.
Perseverance chairman John Quinn said: "In addition to providing our shareholders with a significant premium, I expect that the operational expertise and financial resources of Northgate should allow the assets to prosper going forward."
He said the alternative was to raise substantial capital to restructure company finances.
Surprising to see the Yahoo! message board actually posting something worth while.
Good link to an article on NXG future in Australia:
http://www.industrysearch.com.au/News/Vic_Northgate_hints_at_further_gold_sector_consolidation-28942
"What we're hoping, this will give us is a solid base (from) which we can then look at other opportunities to add to our portfolio," Stowe told journalists in a conference call."
-faz
Has anyone noticed the new look to the NXG website? When did that change take place?
Yeah, one of the most professional sites I have seen in a long time.
-faz
EZ,
Thanks, I will definitely have a look.
-faz
No worries. I am pretty happy with the share price today. we broke through both the 50 and 100 day MA which is a great sign.
The only thing that I noticed in the PR on perseverance's website was that this acquisition is not going to be completed until mid feb 2008 if they give the approval. So will we continue to rise in PPS until then or will we trade sideways until the approval is given or when the acquisition is complete?
-faz
40 will come and go if they cut the rate. I am trying to figure out how the market has priced in the potential cut. Seems to me that a lot of companies have either been trading sideways or have been up big on earnings. I wonder if they are also thinking that the Fed will cut the rates in there too. Personally, I think that they will leave the rates where they are at, but I would love to see them drop a 1/4 or 1/2 point like they did last time.
-faz
mike,
Not at all...because the deal was done in Australia with an Australian company. If you are on the East coast in the US, Melbourne is 15 hours ahead. Therefore, if the PR came out at 6pm, it is actually like 5:00am Aussie time. There was a conference call at 11:00am in Melboure, which would have been 8pm Eastern time on Sunday evening.
-faz
Someone is unloading...news out soon?