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Try 350K+ shares -- still don't see how KVM will be able to snag shares for less than $.02 unless earlier shareholders sell shares. The agreement with KVM indicates more shares to be made available to KVM and sold over a 36 month period than there are number of shares outstanding. Dilution would occur to early shareholders even though there is a 120 day prior price assessment, which 4 month period could be assumed 4 months from now and that would pretty much guarantee a $.02/share price.
As an earlier investor, seems to me that other similarly early investors should get out before further dilution occurs. But set a $.05 or better sell price so that $.02 could not occur. It is shareholder turnover that KVM and other agreement partners want -- to have a stronger share of the pie -- until the truth about these tailings and the other project site is determined. Also, the January 2014 date is a critical performance date -- put up or shut up time or the ownership stake agreements are void.
Bottom line: proven reserves need to be verified in some way and soon!
What catches my eye is that, originally, the info I received and reviewed on the website indicated that there were proven reserves -- this statement indicates that there is unproven reserves! What's this all about?!
Changing of the Fed Chair in the direction of Yellen would keep the QE printing going, stock markets uptrending further and the prospects for gold prices to rise. Perhaps there is a bigger miner looking to snag Lone Star's fledging assets on the cheap..
Hang in there folks -- the global news is that, particularly in Singapore, gold and silver storage is on the rise with huge facilities newly built to accommodate the stash that is intended to be bought. Also major miners continue to deleverage by writing off nearly $30B in losses..Barrick being the first to admit they got in to deep at the wrong time drilling in the least profitable mines -- gotta mine the one wherein the cost is the least possible..and there ARE such mines all over the globe...Dan et al. are keeping the powder dry because as JR11 just reiterated, the first $190 million from LSTG's mine is probably one of the , relatively speaking, easier mines to unearth...More data to come..
This is still helpful to know what is going at this plant -- until we hear it from the horse's mouth I wouldn't trust what is written by a reporter unless there are direct quotes included. So Ferris et al should be in a position to tell the shareholders about the status of the 6000 tons of materials and if there is a prospective buyer lined up (by now).
Okay and here's the kicker -- IF Ferris had shipped the tailings elsewhere as the price of gold was tanking (more noticeably since late November 2012), would that act have created any further or new interest in Lone Star? I am not so sure. However, now I think is the time to act --while the big miners are looking to consolidate the finances and deem which of the more recent acquisitions will be on hold and which ones are easiest to mine -- To me, Lone Star fits that bill and somehow the timing feels more right perhaps than ever before and therefore, these tailings need to be processed to hold onto the current funding that has been gradually put in place. Ferris et al are about to fire as the powder has been kept dry for too long!
Couldn't agree more -- and while I am reasonably confident Ferris et al are legit and that he would be risking a huge loss all around if something nefarious was attempted, there has to be a reason, apart from financing, why there are continuous delays at the plant. Doesn't make sense and at some point as the overall sector de-leveraging occurs, what does make sense is to re-route the load of tailings to another site so that there is something solid to report even if there is a relatively low net loss..
Tomas: Not to disregard your thinking process and I appreciate the analysis. As the deleveraging continues in the gold sector, what is the projected cost per ounce to recover gold and silver deposits for Lone Star via the nitrogen leaching process? I am supportive of Ferris et al and do understand that this venture is a slow crawl toward success in light of a major shift in the gold sector. As a long term venture -- and unless a big player in good financial standing partner's with Lone Star, Ferris et al will continue with obtaining short term funding until enough funds are raised to build the leaching plant.
The shake out is just starting among the big boys -- Newmont Mining is about to lose billions just like Newcrest Mining in Australia, writing off nearly $6 billion in losses! Barrick is laying off a third of its labor force while GoldCorp is heading in the same direction..Until the deleveraging happens in this industry, no real activity is going to occur.. Again, nothing much will move the dial until perhaps the end of the year..
Why not more?
That's about the soonest.. August
That's about the soonest.. August
There was heavier volume trading yesterday at the low so something could be setting up soon. Perhaps the new marketing angle is sowing some seeds..
We've all expressed similar thoughts about Ferris' ethics before and in anticipation of the August report, there may be good reasons for keeping information underwraps. Besides, what's another couple months? 50/50 odds that positive news will emerge is pretty good considering a choppy trading market. The pps will rise on positive news so Tennis Anyone's $.75 target isn't a wild idea..
We know this about the SEC-- the disturbing factor is that, if as Tomas argues that the vast majority of backlog at this Mexican facility belongs to LSTG and it has been operating at the rate it claims, LSTG should have been paid something by now..Or, is that potential statement coming in the August report to account for Q2?
But didn't Ferris et al say that the equipment is bought and ready for installation? The use of the word hectic implies that there is lack of control over operations at the facility. It makes no sense to do business with it/them after the first round of materials..Ferris et al is going to need to take a flying leap into financing to kick this operation into gear..otherwise, it goes no where for a long time..and that stall is not going to sit well with shareholders as doubt is beginning to become a reality despite the potential..share dilution would be temporary under strict buy in conditions but at least the plant would be running within a certain time period -- waiting endlessly for the Mexican facility to process a 2nd load could take yet another year at the rate matters are moving today..the chicken or the egg..
Looks like circumstances are prompting more attention to the leaching plant -- LSTG, if it wants to get things moving much faster and with less pressure from shareholders, needs to get its plant up and running with a short list of buyers..should all be achievable within 3 months time..Stop screwing around with the unreliable Mexican partner and get this show on the road!
Hiring a media company sounds like getting ahead of oneself -- either there is something major to build a campaign around or it is smokescreen play -- while there is nothing reported in the way of revenues, why is money being spent on "promotional" tactic rather than getting the leaching equipment up and running? I know Ferris has been occupied by the various earnings report meetings, like Berkshire-Hathaway's in Buffett-land, Nebraska, but clearly, shareholders need to know what is going on or about to occur in the very short term!
Thank you for your due diligence, though I am concerned on what basis Ferris et al would go in this direction for a mining business-- unless Ferris knows Ohana from the past or that Ferris advised Ohana at some point regarding European ventures..I would feel better about this arrangement if Ohana has had some prior experience within the mining industry.
Been searching far and wide and nothing to date -- it better not be some Asian flake pseudo company..
Too bad the Chinks are stealing our wealth and intellectual property in general -- just a fact of the matter..
We've all said it before; It's put up or shut up time..but personally, I would not want to see Ferris et al. get in bed with the Chinks -- If we have waited this long for some revenue production, what's another 4 -6 months if Ferris is working toward a mutually satisfying relationship with Frisco wash plant operations. With softening gold and silver prices and leaching costs reasonable, LSTG ought to be an attractive buyout asset company.
So what will this 6000 ton yield in revenue for LSTG? Enough to fund the leaching plant? Anyone know what the terms are with the Mexican processing plant?
Is that other facility GoGold's as others herein have recently mentioned? Seems that at least the 6000 tons of material will be processed but that LSTG needs to quickly find its own buyer to show it can be a player in this industry..A put up or shut up moment..Yes, the business has been plagued with a few strokes of bad luck however, if the geotechnical reports are within accuracy of proven resources, LSTG should be attractive to buyers. Still, momentum in the precious metals and industrial metals markets are stalling.
Just my hopeful two cents: could be that the timing of all of this is critical in terms of controlled markets -- I have said it before that there must be a real reason for delaying and that it is cost effective to let the market come to you and not chase after it..we all know by now that gold is being bought up by major lending institutions including the ECB..not sold! There's a lot of concern that reported gold supply in the form of bullion doesn't exist..that those who trade paper gold are idiots because until you take possession of the bullion itself, it doesn't exist..Think about the increasing interest in bitcoin, a concept that has been floated for at least 3-4 years now..warren buffett's recent comments that he thinks it rubbish..that Soros has been trying to put a run on the Australian dollar. I don't think Ferris is bluffing or his credibility is toast and Stansberry Associates would suffer tremendously for it as well. However, I am not sure he fully understands the business enough to move full tilt. So waiting for the right circumstances to become aligned before striking appears to be his idea of protecting the shareholders. That style may be counterintuitive to several of you on this blog..
Since the Mexican facility shut down, I believe in July 2012..
..and then some!
...call Ferris..everyone here is in the same boat and there isn't much we can do about it. Still, the tailings are sellable assuming there is a buyer and in view of the mining climate, this is questionable in the short run and probably why the forecast for any revenues is being pushed further out into the next quarter. Hang in there with the rest of us and maybe we'll all be pleasantly surprised..
Roger -- This topic was widely discussed amongst this site's bloggers weeks ago -- check out prior posts. In short, it appears that the April 2013 processing date has been delayed and now, absent any other delays or failures both political or mechanical, the results of the processing are forthcoming in late May/early June..
..followed by grading of the metal extracts, which determines the market value..
The quality of the silver and gold extracts are what makes LSTG valuable --not simply the amount proven extractable. Higher grades command a better and faster sale of goods.
The other half of the equation is knowing if there are sufficient buyers -- that the plant is operational with even low level grinding and processing activity, knowledge about sold product is necessary to get a sense about the turnaround time for LSTG -- it could be weeks or months away..
for the purpose of showcasing the mines capability..a teaser perhaps..I don't think Ferris is going to make mining his career..he is in for something else and the best I can surmise, is a hedging play..just my thoughts
simply because it is cheaper to wait for the money to come to them, instead of raising and spending millions to bring the resource to the surface..several owners of mines around the globe do this..and wait until the time is ripe, until supplies run low.
could be that Ferris is holding onto the mine, never intending to fully unearth the resources, as an inflation hedge play..basically resource hoarding for the long haul horizon as he is a young pup and has time to wait..
As a small player in this geographical area of Northern Mexico, combined with disruptive local politics and the on-going battle to decriminalize the area, keeping information close to the chest is probably good insurance against possible raids and destruction of the government facility -- I believe there are eyes and ears there to keep Dan et al abreast of circumstances. Deer Valley isn't investing $15M without some assurances.
Use good bait and the fish will come!
I concur -- hang in there -- I am in a whole lot deeper than most of you..Dan is affiliated with Stansberry Associates..his mantra is essentially, "slow and steady wins the race." If you are a shareholder looking for a killing to occur within the next 6 months, you are in denial. The mining industry has peaked out due to the very high cost of gold production, $1100-$1200/oz. The biggies, like Barrick and Newmont are hitting three year lows with plummeting eps numbers.. they all got way ahead of themselves.. no different than the housing bubble or any bubble for that matter.
Further, the imbecile in office is sitting on a bunch of nat gas permits that would allow for cheap energy which, in turn, would jolt the mining industry worldwide..
Why post updates the site when there will be little pop to affect the stock?? Very few people are looking at "gold" right now except for Goldcorp perhaps..
Just my take. Other thoughts?
Are there any revenues since processing began apparently in 2011? What is the quality of the metals?
Cha-ching! Any pics, Tomas, of the activity at the Plant per the article in El Sol?
I believe this newly elected Governor is the cousin to the past Governor who was gunned down recently. Also, it seems that there is a large water dam project in the making for northwest region of Mexico..water mitigation is a big problem and there is a very large water debt owed to the US based on a 1944 treaty. Against the background of high crime (apparently, highest in the northwest region of Mexico) and until this crime scenario is under control, there is no incentive for money to flow into Parral..government needs whatever funds available to first stop the murdering, theft and destruction of businesses and its workers..Just my take as there is no other reason to stop the facility despite the reported explanation that renovation and upgrading is needed..