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I'm pretty sure most of us optimist are in a holding pattern waiting for some good news.
Not quite sure exactly where I saw it, but I do know for a fact that Ferris purchased 15 million shares of LSTG stock at about $.05/share when he took control over the company.
What I remember from my initial research, doesn't Ferris also have several million dollars invested which would go "bye, bye" if LSTG goes bust. Seems like a pretty strong incentive to me to make this work.
As promised, below is my gold mining friend's expert analysis of LSTG. A bit technical and brutally honest. He finds the "tailings project" interesting, but considers the prospect of LSTG becoming a fully operation gold mining company a long shot. He does point out a couple of gold mining companies in the "exploratory" stage that he does find interesting. They say knowledge is power and I hope this helps everyone have a better understanding of their investment in LSTG. Obviously, pretty risky, but with big risks come big rewards.
Hi Mike P
I promised to review and comment. The market has many opportunities to invest into gold and/or silver companies where I usually consider the domicile as a critical issue. Mexico is viewed by the market as being rather high on the curve as compared with Bolivia, DRC, and others. Personally I have some issues with Mexico since the progress from acquiring a geological target through exploration; development, and production generate individual sets of unique challenges. In simple language, I do not like surprises and Mexico has many. For example, selection of a labor union and the rights of that labor union are somewhat foreign to US conditions; ownership of land and mining rights are also unique in some regions; and, future value sharing with the government and local squatters is now in flux. The country has many positive attitudes toward mineral development but their legal and political systems which appear straight forward, are not.
With regards to the specific investment, the current market is harsh with respect to junior mining companies. One can classify from the less defined to those with the highest clarity: a. Over the counter stocks where the properties do not have a CN 43-101 or JORC filing for the resource and project; b. Junior listed on the TSXV which also do not have a CN 43-101 or JORC filing; c. Junior listed on TSXV with a CN 43-101 or JORC filing; and, d. Junior or mid-size firms listed on the TSX with a CN 43-101 or JORC filing. This is somewhat boring but the investment risk declines from (a) to (d); then, you have the major listed groups on the TSX and NYSE, etc as well. One can invest and perform well in many of the sectors but the skill (like all markets) is knowing when to get in/out.
I can identify couple of dozen interesting investments (no guarantees) where one has the potential for multiples on the investment. I am not very excited about Lone Star since they are more in the (a) grouping and the investments are not 100 % ownership. I also examine the management and this has an influence on my view.
I was a director for some time with Euromax Ltd. listed on the TSXV where this firm is beginning to achieve some traction with their properties in Bulgaria.. I do like High Desert Gold listed on the TSXV with properties in Nevada in an established gold zone where the management is excellent. Another junior in Canada is Gowest which is interesting.
Let's consider the gold and silver markets (PMs): We appear to have a serious restructuring of the PM market with investors believing that stocks and other investments are attractive in the current environment and the major issue "Fear" has declined with respect to Europe, US, and Japan. I am not on the same path as this thinking but one should not swim against the tide. Gold could test $1200 per ounce should this trend continue. Base metals however have stabilized and could move higher which is a deviation away from the fundamental thinking. I do expect gold to rise over the next 18 months since the Europeans have not resolved their problems and physical demand for gold is very high. Political stability is questionable in Asia, Middle East, and Africa.
If you are a gold bug, a vehicle for investment may be the ETFs where you can enter and exit at ease and trend with the actual gold price where gold mining company stocks have not been able to maintain pace with the actual gold price over the past few years (Newmont, Barrick, etc.).
As for Lone Star, I do not believe that you will realize value soon for the tailings project (positive cash flow) and the La Candaleria property is not well defined. From a personal view again, converting an exploration play into a producing facility is not a simple task. The tailing potential is interesting but the firm has much to overcome before achieving a positive cash flow for the total project.
Hope this helps.
Best Regards,
Mike M.
Don't know? Just know that they can't publish anything which is not factual and would be setting themselves up for a major lawsuit if they are caught telling lies to stockholders (fabricating numbers and/or the progress that is being made).
I realize the lack of news and action is frustrating for all of us, but the BIG losers if LSTG goes south will be Ferris and the companies who have invested millions. I just don't see commitments for this kind of money happening unless there was good data/research and a realistic chance for success. Although I have yet to receive his detailed report, my mining expert friend said LSTG is doing everything right and the problems they have run into are pretty common outside the USA.
Everyone needs to remember that the SEC will come down hard on any company making premature claims of success. It has to have actually happened for a company to announce anything, so information from LSTG will always be as conservative as it gets. LSTG may well know that there is tens of millions of dollars (or more) in the tailings project, but can't legally speculate this to shareholders. Until the tailings are processed and LSTG has the actual gold/silver (and/or a check) in their hand, the can't say a damn thing.
So far so good. My golfing buddy who is the mining/gold expert had no complaints in his cursory review on lstg when I talked to him today. He is going to send me a detail analysis when he completes his research which I will post for everyone.
Let me start this with my favorite lawyer joke. Women goes to see her gynecologist and asks the doctor if she can get pregnant from having anal intercourse. The doctor responses, "absolutely, where do you think lawyers come from?"
Anyway, I have a golfing buddy looking into lstg for me. He has been a mining expert for some 40 plus years, has a PhD in geology and does consulting for about a dozen (plus) gold companies He's not much into foreign exploration because of the political issues (which we've seen). I will post his comments for everyone to review as soon as I receive them.
I remember the original samplings which looked good, but how much did they sample? Wasn't much. Panning would confirm the original findings without cost and keep the interest high in the stock while waiting for full scale production to begin. Sure would show a lot more to the investors than having us sit on our hands waiting for news.
Good morning troops. As we all sit here waiting to hear something on the tailings project, there is a very simple, no cost way for Lone Star to generate interest and excitement in their stock. Take a 100 or so randomly selected yards of the tailings material, manually pan it and publish the results. If actual results from this manual panning meets the projected expectations, then we can realistically estimate the true value of all the material to be processed and the stock should rise accordingly. Heck, I'd volunteer to do a little panning. Sure beats sitting around waiting for the Mexican bureaucratic to actually do something and might even be fun. Happy TGIF everyone.
Hi Troops: As we all wait for some revenue to show up on the books, I have just one question. Why the heck hasn't anyone been curious enough to take a small load of the "concentrate", manually pan it and given us the results? If the amount of gold shows up as projected, then we can safely assume like results for the other valuable minerals LSTG hopes to extract from the concentrate. I'm sure every LSTG stockholder who reads this would happily line up at the concentrate site to pan for gold if they were there. I know I would. Happy TGIF.
I'm originally from Chicago and have talked to Steve myself. I'm even familiar with the building he's in. Still have many friends in the "Windy City" just in case Steve doesn't do his job and we need someone to adjust his knee caps. Smiles
My top 4 liars & crooks (isn't greed wonderful):
1. Bankers
2. Politicians
3. Investment Firms
4. Insurance Companies
Well down the line are felons followed shortly by lawyers.
I too am in for the long haul. We'll just have to wait and see if there is gold/silver at the bottom of that big, deep hole or liars
I had to laugh yesterday after hearing what Mark Twain said the definition of a gold/silver mine was: "A big, deep hole with a liar at the bottom". Too funny.
Hi locklamp. I think they should send the first check to us personally I agree that everyone is just waiting to see what the numbers come in at. Stock has been trading in a pretty narrow range without a lot of volume.
Glad to get an update from LSTG, but would really like to see the $$$ being generated from the "tailings".
With the low trading volume, maybe everybody is now out and this "dog" has reached its bottom.
If anyone is interested, take a look at "LSTG". Near their low ($.166), but unlike NSRS, they are "on the gold" and starting to generate revenues instead of just "vaporware". Could see a substantial jump in LSTG when the news hits the street.
locklamp: Simply stated, I agree.
I just hope they don't deposit the check in JPMorgan Chase They talk about certain banks as being "too big to fail". If you ever read the book, The Peter Principal, I think they are getting to big to succeed. Have a good weekend.
The $50 was just a "blue Sky" figure I made up based on nothing. If the stock went from $.17 to $1.70, I don't think anyone would be complaining about a 1000% increase. If it goes to $17 that's a 10,000% increase. I'm not greedy. I'd be very happy to see it reach $1.70 and go from there.
billandlori: When LSTG says they have a check coming in, it means they are starting to produce revenues not just spending money exploring. Very important especially if they meet expectations based on the assay results from their tailings project. These revenues make them a "real" mining company, will eliminate debt and provide funding for further exploration and growth. The tailings project alone won't make LSTG a $50 stock, but provides the resources for them to hopefully finding the "mother load" on their Mexican claims.
I haven't heard or do I expect LSTG to do a stock split. Recently, they reduced the number of available shares by 25% which is actually a good thing for us stockholders. The best bet we have is LSTG finds some significant gold deposits and gets bought out by a major producer like Goldcorp (GG). Then we are looking at $50 a share. Hope this helps.
You could be right. I'm starting to believe I know absolutely "squat" about what the market is going to do. It defies logic most of the time. Smiles
With Europe, the huge deficit, high unemployment (of which has yet to be reported accurately), states and cities going bankrupt, nothing really happening in the housing market and no meaningful legislation being passed my our inept government, I don't even understand how the market has reached its current levels. Sure corporate profits are up from laying off employees and reducing expenses, but there's got to come a time where somebody has to "pay the piper".
Totally agree Locklamp. A lot of the "pump & dump" stocks you see are like people on welfare who talk a big story about getting a job. There's a BIG different between that and when you start earning money and support your family.
Morning Locklamp: I don't remember if it came directly from LSTG or was just a "pump" on the stock, but a monthly revenue number being thrown around on the tailings project was $800,000.
Does LSTG's daily stock chart look like an irregular heart beat to anyone?? Smiles!
Good job erobolman: Let's just hope the first check they get from the "tailings" is a BIG one and reflects the $800,000 a month (or greater) that LSTG had predicted. Hope everyone had a nice weekend.
locklamp and jef63: Have a good weekend and when LSTG hits $175, lets all meet in Hawaii for cocktails (Am I being just a little "Blue Sky" or what!). Smiles
Locklamp: I saw somewhere were LSTG had revised the assay result on the gold content from the tailings to .85 grams per ton (compare to .7). We'll soon know once LSTG publishes results from running these tailings through their new "wash plant".
Personally, I'd take it easy on "doubling down". LSTG appears to be doing the right thing, but this stock is still high risk. There could be some nice rewards, but LSTG could also go bust. Be sure to carefully weigh the "risk/reward factor". We'll all be keeping our fingers crossed. Smiles
erobolman: I was calculating "gross" potential, but you're correct on the 1.2 million tons. Don't know what the zinc/lead are worth, but if LSTG can net $130 million, should put them (and the stock) in an excellent financial position to complete exploration and to start mining the Mexican claim.
Sorry, I made a mistake in my calculations. The assay results for gold were .7 grams per ton (not .07) putting the total potential gold value at $61,111,111 and the overall value of the tailings project at $254,795,301.
I thought I was right with my original $250 million figure.
Looking at the conservative LSTG assay results on the tailings (the numbers below have actually gone up):
.07 grams per ton gold
115 grams per ton silver
The calculations are pretty simple when you figure there are 28.35 grams to an ounce.
Gold
.07 grams X 1.5 million tons = 105,000 grams
105,000 grams divided by 28.35 = 3,704 oz
3,704 oz X $1,650/oz = $ 6,111,111
Silver
115 grams X 1.5 million tons = 172,500,000 grams
172,500,000 grams divided by 28.35 = 6,052,631 oz
6,052,631 oz X $32/oz = $193,684,190
TOTAL $ 199,795,301
My, my. Can we assume LSTG's business plan and due diligence (exploration, research and assay samples) looked pretty darn good for Fairhill to invest $24 million. I'm hoping this and a good report on the revenues being generated by the tailings project will finally start pushing the stock price upward.
Looks like you got your $.1725 price (well done). Now all we need is an announcement from LSTG that they are officially on the gold and generating revenues. Good luck my friend and have a good weekend.
Good update from LSTG. They appear to be doing all the right things to become a true gold mining company. If the tailings project meets expectations and the drilling on the Mexican claim identify meaningful gold deposits, this little "long shot" puppy might just turn into a decent investment.
Thank you. If this was easy, you and I would be meeting in Hawaii for a drink to discuss investment theories. Trust me, I know this is a "crap shoot". We'll just have to see what comes out of the "wash plant". My next post might be, "MrDemas was right". Have a good one.
Obviously, you can't take a little kidding my friend. As far as not knowing who you are, for that I'm grateful. I do know after WWII, my uncle was a bush pilot in Alaska and gold miner until he died and a very wise man. I'm curious what your credentials are and I'm sorry you represent your state so poorly. My uncle would have been disappointed.
I know the assay results are far much more important than who produced the "tailings". I'm sure LSTG and the $15 million dollar investor are not stupid enough to invest in a "wash plant" if the material was not worth processing. I like Alaska, but I think you've been watching too much of the "Gold Rush" series
I'm in at about $.40, but knew it was a risk so I didn't invest a whole lot (8,000 shares). Only stuck with it because LSTG is actually getting into recovering some gold instead of just exploration like NSRS which in a very short period of time went from about $1.40/share to currently heading (quickly) towards $.05. My hope is the "tailings project" will provide LSTG sufficient capital to have a solid financial base to work from to do an in depth exploration of the Mexican claim. Obviously, if LSTG finds mine-able gold reserves, then things could become exciting and my little investment could turn into a big winner (I certainly could use the money