Karora Resources Inc (KRRGF)

[ConferredDiligence]

RNC Minerals, the latest article/update:

by @Mikeymike426 on November 19, 2018
RNC: The Hunt For Answers

Just a few months ago, RNC Minerals was struggling to get Dumont going, diminishing positions they held in joint ventures while Beta-Hunt was for sale. Then one day, everything changed... CEO, Mark Selby found himself front and center of what may be the most prolific gold discovery of the last Century. With all the excitement and the prospects of bigger things to come, RNC revealed to the world what they had found - quickly becoming the talk of the town, and captivating people's imagination.

In the beginning, they could do no wrong. Every news release got people more and more excited and very quickly, their phones were ringing off the hook. The share price skyrocketed and it seemed like nothing could slow RNC down. With questions mounting, it was inevitable that clerical errors would arise especially when you consider the tremendous pressure of the transition from Q3 to Q4. This transition period proved to be a challenge for the company as they tried to articulate the ongoing activities at the mine.

My work experience put me in a unique position to be able to dissect the ongoing activities at the mine through analyzing pictures. Being a hard rock miner allowed me to ask the right questions and thereby get the right answers and relay the information to people through means of social media. In some ways, I can relate to Mr. Selby, in that I too have faced a lot of pressure in my attempts to educate people about mining processes and procedures. I never expected to be in today’s position, where I may have the opportunity to go to the Beta Hunt mine to meet the men at the forefront of this discovery.

I sympathize with RNC, as I’ve come to realize that it is next to near impossible to keep everyone happy. Only so much can be done to clarify the ongoing activities at the mine. While I am not employed by RNC, there are many who rely on my experience and my due diligence for the answers they seek. Given that the last few news releases have been somewhat confusing, I set out on a mission to get some clarification on particular matters and the company was kind enough to respond in a very professional and articulated manner.

I will now share my findings through this article to help people better understand the position of the company.

I have made the company aware of my intention to go to Australia and they will consider hosting a visit to Beta Hunt for analysts and investors in the New Year. They cannot be more definitive on this matter at this time, but will do what they can to accommodate my request. I will be travelling to Toronto to meet with them later this month to discuss options moving forward and I am very grateful for their proactive approach to the situation.

Initially, RNC had publicly announced that they were exploring the possibility of listing on the ASX, which I'm sure most will agree could add potential value to the company by tightening the float and adding to the already expanding base of shareholders. The company’s response to this was "The item was discussed at the most recent board meeting last and remains under consideration. We will make an announcement if the determination is made to proceed. Expect that we'll make this determination by year-end if not sooner." As a shareholder myself, I look forward to the company's decision on the matter and hope that our friends in Australia can more easily partake in the success of the company moving forward. RNC has ensured me that they are always looking at ways to maximize shareholder value.

Concerning the drilling program, I was told, "A drilling update with more specifics will be released in the short-term. The drills are/will be targeting the A Zone and The Western Flanks. The Fletcher Zone is not part of the near-term drilling plan." Being that The Fletcher zone is not as close to the infrastructure of the mine, this is understandable. As far as when we can expect drill results, the answer was as expected: "We expect initial results from the drilling program to be available in December and we are targeting Q2 2019 for an updated resource estimate." With an expected four drills working on the property by year’s end, I think this is a conservative estimate and look forward to the results. The previous drilling done on the property already indicates that the resource should expand as they develop the model, yet there are no immediate plans to ramp up production until the resource estimates are completed. Most junior mining companies never find themselves in the position to drill as aggressively without the need for funding - so the future of RNC in this regard is exciting.

I also asked for clarification on the total number of ounces that have been mined form the initial Father’s Day Vein. "As of October 31, there have been a total of 25,355 ounces (this includes the 8,506 ounces of coarse gold)." November's totals have not been factored in as of yet, but we can expect the total number of ounces to grow and the company will update shareholders accordingly. Management realizes that the clarity of the numbers has been an issue and are taking our concerns very seriously moving forward. In the short term, they plan to release more pictures of the progress, but how, when, and where are to be determined.

RNC is aware that shareholders have been left scratching their heads at times while reading the last few news releases and when I asked about a PR company being utilized, they responded, "We hear you. Disclosure in these circumstances is not simple. This was a very rare discovery. Estimating the gold content for high grade coarse gold is very difficult. We need to be very careful as to not mislead the market. As a kicker, each of the company's operations in Q3 required a change in its accounting treatment (e.g., Beta Hunt was reclassified from prior "discontinued operations" treatment), which made the quarter and related disclosure more complicated. We provided a more detailed October production breakdown last week in response to investor feedback, and going-forward will be happy to incorporate specific constructive feedback into our releases."

Some of our American friends made a point to me that the news flow on the OTC did not seem to be up to speed with the TSX listing. So I asked if anything could be done to correct this, to which they responded: "All RNC news is disseminated on the OTCQX website at the same time it crosses the news wire through the Cision wire service facilities ( http://www.otc markets.com/stock/RNKLF/news ) . OTCQX receives the same wire feed. All news is also available through sign-up link on the RNC Minerals website."

Overall I am very pleased with the responses that I have received from the company and admire their willingness to engage with the shareholders. I have always maintained a positive outlook on RNC and I stand by that today more than ever. With a bit of patience and tempered expectations RNC is in a position to be very successful. With any luck, I will have the opportunity to sit down with Kevin Small and have a good discussion with him. I would absolutely love to meet the man from Northern Ontario, who is from what I can gather, responsible for the Fathers Day Vein Discovery. This will be his legacy and I would love to be the one to re-tell his story about how he came to be a part of RNC and this world-class event at the Beta Hunt mine.