You're not likely to get a friendly response when calling NAK IR about LBSR. They've got several billion dollars at the table with their own pebble mine project so their not really interested in discussions about a project in exploration stage.

No, the same Alpha who almost bankrupted LBS* and who are still selling shares into every rally the company has.

In my 100% unbiased opinion, this is NOT a good situation for this company to be in. I've seen too much damage to other companies as a result of their lending practices.

FYI, Larry Liang named president of LBSR

We approached Northern Dynasty with the results of the ZTEM on Big Chunk and shortly thereafter they gave us a 3.1 million dollar loan and purchased aproximately 23 acres of land for 1 million dollars. This allowed us to pay off old creditors eliminating toxic debt.

The terms of the JV (still yet to be signed and finalized) are that Northern Dynasty has to spend 10 million dollars over 6 years. The 3.1 million dollars plus interest accrued can be counted towards that 10 million dollars so as of today, they could count aproximately 3.5 million dollars with the loan plus interest + whatever they have spend on exploration which is unknown to an extent but we have a few specifics:

They are getting $10k cash and the other half in shares. I highly doubt we would pay the full 20k in cash. If MLV fails then those shares become severely devalued and they just worked for 1/2 their price. One might not consider that skin in the game but i do as most firms don't do work for $.50 on the dollar

If LBSR has even a 4/1 upside in the eyes of MLV then success means a success fee AND those comp shares valued much higher. if they get us to .20 pps then they've turned a $20k monthly fee as comp into a $50k comp. Not a bad incentive for them to make this work.

As a reminder, we should see a NAK filing soon (quarterly). The last filing was 5/17 so the next one should be out within a week or so.

We could get some valuable information from this. Things that caught my eye in the last one:


Expenses:
Exploration 316(2011) 147(2010)

We don't know how much of the exploration expenses went towards Liberty Star stuff but remember 1 million is an important #.

I hope that's true. Some have speculated that the land could be used as an eventual tailings site. I've seen different versions of the pebble layout map and in the Feb 6-k NAK gave us a proposed site layout looks something like this:




Latest map from the 6-k:
http://www.sec.gov/Archives/edgar/data/1164771/000106299311000722/exhibit99-1.htm


Older map:



If I had to guess they needed the extra land:

Let me get this straight ... You would start drilling and thus exhaust the solid cash position that we currently have while putting us in a situation where we were desperate and on the brink of going broke within a few months?

Or you would you sit and let things play out knowing that a JV is in the works at pebble while NAK/PLP prepare the pre-feasibility study and later permitting AND knowing that there's a good chance of a partner coming in to fund a drilling program and construct a similar earn in deal for Arizona claims?

... Any smart business person would go with option #2. Play it safe and don't rush things to ensure that we eventually turn this company into a great investment, impatient investors be damned.

The good news is what we already know in the fact that LBSR has the ability to pay claims. Last financial statement we had $818,635.00. Based on what I can tell this was after paying SRK. I think we are paying MLV via shares (dilution but not a drain on cash position). After claim maintenance we should still have a decent cash position. We'll know when financials are released in another month or so. I'll email Tracy and try to confirm these facts and #'s.

Hey guys. Anything interesting today?

Bid to preserve mining ban in AZ fails. Briscoe "Most positive development for AZ strip in a couple years" (per twitter feed)

Link to story:

http://www.businessweek.com/ap/financialnews/D9OEANEO0.htm

Certainly newsworthy.

I still don't understand why people complain that Tracy uses twitter & facebook to send out industry related news items.

It's also the best way to ensure one doesn't get caught sleeping when an NR is released. I have a text notification for all LBSR tweets. As long as they post it to the feed I know when an NR hits within seconds. (I then sprint to my computer and buy some more shares immediately)

If you look at the chart a dip into the high 5's and consolidation in the high 5's low 6's for a few days isn't that unexpected.

Also, we're up 3% on the day as of this post. What are you even talking about?

You posted the same thing twice, basically ignoring the first round of replies. What's your intent here?

The SEC doesn't allow confidential treatment of material information if it's simply something negative.. it has to be something that could put the company at a competitive disadvantage if disclosed. If you're truly a long term investor here, why wouldn't you want the company looking out for long term profits instead of worrying about releasing information for a short term gain?

And if the company feels that releasing too much data could harm its business or if there are new developments that they feel releasing this information could impact negatively then they are making the right move. Who cares about short term, small % drops in the grand scheme. They should run the business first to make the company the most profit possible and let the pps follow, not the other way around.

Also...

Twitter post: Brscoe is out in the field today with SRK geologists in southeastern Arizona

Picked up another 100k at .051 just now.

I would expect to see news anywhere from Thursday this week to just after the 4th of July holiday. Have to assume a couple days for the SRK report to be received and analyzed by the company so they can present their NR appropriately.

There are a lot of momentum riders with this stock. Anyone buying now is going to make and easy 20% if not more the day news hits if they want to flip... We've seen the action too many times to think otherwise. Those trying to time it the day news hits had better be sitting at their computer 9:30 - 4:00 for the next two weeks or you just might miss your chance.

Of course the smart play given the events to unfold would be to hold long like the majority here.

If you're having difficulty here you should have someone else make the call. Ive spoke with NAK ir multiple times as I own some stock there as well. The lady I spoke with hates any discussion of LBSR or FMM and will down play as much as possible. She was very rude the first time I called but has since been much friendlier and outgoing (she's also very intelligent and understands mining quite well)

Not really PR worthy IMO. Putting out PR's for somewhat insignificant events makes the company look like they are trying to pump.

I like the fact that we get these tidbits via facebook/twitter vs. dead silence between news reports.

As time goes on and more companies utilize the technology, we'll see a greater appreciation from investors when a positive ZTEM report comes out.

For now we can benefit because we trust the technology while the market isn't 100% on board yet and that means we get bargain pricing while the rest of the market waits for drill results.

I love it.

I think a lot of people overlook just what positive results from Tombstone could do for us.

I'm highly in favor of selling the entire project for cash if we could negotiate such a deal.

Imagine being in a position where we had literally no risk but to simply prove what we have in the ground at BCSP,BJ,North Pipes. With ZTEM and some great rock kickers on board, that's a pretty safe bet IMO.

You're right.

I'll be rich if it hits $0.50 though so I don't mind the longer time table. :)

What a difference a year makes

June 2010
- Previous note holders had declared we had defaulted on our loans
- We had no potential JV and no way to explore BCSP or BH
- We had no cash
- We were in danger of losing our claims
- There hadn't been a peep regarding Tombstone


June 2011
- We have financing from NAK at 10%, accumulating interest but not exhausting our cash position (much better terms)
- We have a potential JV with Northern Dynasty
- We have our claims paid for by Northern Dynasty
- We have additional exploration of BCSP and BH and are prepared to drill
- We have over a million dollars in the bank
- We have action on Tombstone that could provide another JV or cash if we sell off the asset (I prefer the latter) and we are days away from getting a detailed report.


What a difference a year makes and what a turnaround for this company. We are 1 - 2 weeks max away from seeing something very exciting IMO. I can't wait.

Perhaps some truth but there is a clear bottom at .01 other than the occasional drop because someone gets impatient and puts out market order sell. There's not a LOT of risk buying at below .015 right now.

You've seen it run in the past and with any positive or neutral news seeing a run to around .03 with good volume is a very reasonable expectation.

Long bits of silence hurt us before as people grew impatient but now we have a clear timeframe and expect additional news this month for sure, probably late June. I would expect to see continued accumulation with support in the high 3's, low 4's but wouldn't be surprised to see support build mid 4's during the accumulation period to follow.

Now is the time to build your position if you haven't already.

Once we get details on Tombstone, assumnig all is positive, you can forget about anything in the 4's again. If we get that and ANY news whatsoever on Big Chunk then you can forget anything under .10 ever again and you'd better buckle your seatbelts.

We have so much to look forward to
1. Detailed report from Tombstone
2. Announcement of core drilling Tombstone
3. Potential JV with someone for Arizona properties
4. Finalization of the JV with NAK
5. Announcement of a drill plan for Big Chunk (via NAK)
6. Potential sale of assets generating a solid cash position for the company
7. Potential merger / buyout now a real possibility

... or something else completely unexpected.

Any of those items would send us way up. There's not a lot that could hurt us at this point. We were all hinging on Big Chunk for the longest time which is still what would put us in dollars eventually but now we have a project with a lot of life in Tombstone to support our pps and send it upwards even without news from Alaska. What a great time to be an investor here.

I think Mir is in trouble. Roy has better boxing and great Bjj. His weight is going to give Mir trouble if the fight hits the ground. I see this as a 3rd decision for big country.

NEWS!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

It was an accredited investor so it's someone who I'm sure is well aware of the risk / reward in penny stocks and who I'm sure is aware of the potential here. Given the amount invested I'm sure he/she follows our projects quite close and is aware of what events are expected to unfold over the summer.

Before the "6 or 7 pebbles" we were trading at .002, almost out of business and had no interest from NAK at all.

After the ZTEM we had a JV proposal, a 3.1 million dollar loan from NAK, and since have just under a million dollars spent maintaining claims and conducting exploration.

Don't discredit the ZTEM, please.


Pebble Partnership had the opportunity to acquire the claims that NAK purchased for 1 million dollars. There was never mention of a JV with Pebble Partnership that I can see. Full Metal Minerals announced a JV with Pebble Partnership and they have had the same silence since, the only news being in NAK filings.

Your fears regarding JB relinquishing control is pure speculation and there are plenty of other reasons why things have been silent .. but the "silence" is all in peoples heads as we have been seeing progression in the NAK filings and we all KNOW that not much can be done in the winter time.

Again, don't discredit the ZTEM. You make it sounds as if we presented the ZTEM after the JV was proposed. Not the case. The ZTEM is what got NAK's attention and got us the loan and a million dollars in the bank.

Shallow drilling.

They have been drilling for years. Shallow drilling isn't considered a material event given the amount of reserves they have already uncovered. It might be to LBSR but not to NAK. I'm just telling you, you aren't going to get much in regards to LBSR stuff if you call NAK IR.

I hold a decent amount of NAK shares as well and I've had some great conversations with the IR lady there. The best bit of information she gave me was in regards to how difficult it was for HDI to take on any project. They literally have a guy with the nickname "Dr Death" who is known for killing projects before their board will give it a look. Just making it to the board is nearly impossible when a geologist comes wanting funding for a new project.

Putting 2 and 2 together, it's clear to see the significance that an HDI company is about 4 million invested in our project currently.

NAK, no. HDI, don't be so certain given the connections.

Call them but don't expect a friendly discussion. They are 100% focused on pebble and seeing it go into production (because their focus is actually to be purchased in the near future).

I suspect that they view the JV with LBSR as either 1. Something they would like to keep separate so they can fully capitalize once assets are proven and not sell any interest along with the company when it's purchased or 2. Not an attractive contractual agreement to a would-be buyer until something is proven. Once they drill and prove then they would be more likely to finalize a JV agreement to increase their value to whatever company is interested in buying them out. Then again, I'm sure all the big players are well aware of LBSR given their interest in pebble already.

Been sitting on this for quite a while. This one could be big.

Nobody has more inside info than these guys. I'm sure they got the inside scoop when LBSR was pitching them for financing. The fact that they didn't burn through their shares is very telling

How exactly do you not know the direction the company is heading?

Currently the company has 2 projects with activity

1. Big Chunk / Bonanza Hills

2. Tombstone


With Big Chunk, things are progressing but you can expect to see several months between any significant updates. You already know that NAK has conducted exploration and we all expect that drilling will take place this summer. That's your direction. The company can't make up news to satisfy you and projects like this will take time. Set your expectations accordingly or sell your shares and move on.

With Tombstone we know that SRK was contracted to provide a report. We are waiting the results and also expect to eventually file permits and drill. We may also have a ZTEM. Again, this will take time and you need to set your expectations.


I've re-stated the same message when I see people complain about the previous mistakes of the company. It is because of those mistakes that you can purchase shares at .03. If the company had been ran flawlessly since inception you wouldn't have the opportunity to buy in at these levels. You have to take the bad with the good. Unless you have been in the stock for a couple years you knew about the previous mistakes when you came here and invested (assuming you did your research).

You need to know what potential there is here. You need to expect long periods without news and understand the expected timeline of events forthcoming. You also need to understand that there are risks. If you can't understand all those things then you don't belong here as an investor and if you continue to invest in such a fashion you'll continue to lose money.

Tombstone should not be viewed as a non-event. If we get positive drill results from Tombstone, which is a project that was off the radar to most LBSR investors until recently, then we suddenly go from a total exploration company to a Jr. that has some proven reserves. This after 95% of the focus has been on pebble and the rest has been on uranium for quite some time now. We held .03 without much investor focus on Tombstone so anything generated is a bonus and if the findings are significant then we should get a nice return from such news.

Clearly the company is expecting something of value here otherwise why contract SRK and why potentially fly a ZTEM (we haven't flown one yet but my last convo with Tracy she said it was a likely possibility).

With good drill results we would likely enter into a JV or at worst case sell the land. Either option goes a long way towards generating cash that the company will need going forward. The company doesn't look bad now with about a million in the bank and 3 million in debt (assuming we are paying the interest on the NAK loan and not letting it accumulate). It could look much better with some actual proven reserves, a JV and future revenue or a nice cash position and/or no debt while still holding the same mining claims that brought most investors here in the first place.

That's a good question for someone from GeoTech to answer or someone whos is more familiar with the technology. I don't think the technology has been around long enough to know exactly how accurate their surveys are.

There are some case studies that use ZTEM on their website. For example:
http://geotech.ca/images/stories/CaseStudies/Geotech%20-%20Terrane%20Minerals%20Case%20Study.pdf

and current up to date information on the project: http://www.terranemetals.com/s/MtMilligan.asp


If you look at their website, one of the key features of ZTEM is: Excellent resistivity discrimination and detection of weak anomalies due to the nature of the natural EM fields.

For now we have to rely on geophysical and geochemical surveys and knowledge of caldera formations. The big players use drill results, not a technology like ZTEM to decide whether or not they want to get involved. Thats why we still sit at .03x. It is a blessing that Hunter Dickinson is involved and covering the cost going forward. Drilling is the next step. ZTEM will also help identify specific targets and reduce the cost of further exploration. The fact that HDI is apparently sold on the technology should be an additional confidence boost albeit not the definitive data you're looking for.

So yes, the correct answer at this point should be: "Looks good; now let's drill it and see." ... the good news is that simply announcing a drilling plan should give us a boost in anticipation of results. Play accordingly.

No progress?

NAK paid to secure claims
NAK flew additional ZTEM over our claims
NAK paid to drill test holes

All a part of the spending required for NAK's earn in agreement

There's literally nothing else that can be done during the winter in a remote area where there are no roads and the only way to get there is via helicopter. We're almost to the point where exploration can resume. What would you suggest Briscoe do? Do you honestly think he can force the hand of Hunter Dickinson give their current position vs ours?

You need to take a realistic approach or sell your shares and move on.

That's what you get with a Jr Mining/Exploration company like this. If he were Jamie Dimon level CEO do you think you'd have an opportunity to buy at .03?

He did negotiate a JV with NAK that took us from .002 to the levels we are at now. He did stake the claims in the first place. He's done pretty well and frankly I'm glad he has lacked somewhat as a CEO, otherwise I wouldn't have multiplied my initial investment x20 already and we wouldn't have the opportunity we still have to buy at these prices. He's made mistakes but just about every move the company has made over the last year has been a good one.

He doesn't pump, he doesn't put out fluff PR's and we're sitting on the verge of something potentially huge here.

Hunter Dickinson is spending money on our project. That can't be denied given the fact that it's documented in the Northern Dynasty filings.

We are still under the radar because we haven't drilled yet. The fact that we haven't drilled and have no proven assets is the reason you can still buy at .03 range. So place your bet based on what you know. What I know about Hunter Dickinson, and how they don't spend money on any projects that aren't legit, tells me this is a good bet. We also have caldera knowledge, ZTEM etc.. to add support.

I'm not one to say you won't be able to buy at .03 for a little while longer. My guess is you have probably 3 to 6 weeks before we get any significant news on Arizona but something on pebble could come at any time so keep your eye out.

I'll keep building my position while we wait. Do what you want but set your expectations accordingly and understand the reason why we're still under the radar. I can also assure you that there are several that were in and out of this waiting for news to pop before they jump back in. Many people are "active traders" and don't like to play a sit and wait like this one. If good news hits you'll see an influx of money come back as many don't want to be left out of another run like we've already seen.