WHY I BELIEVE IT IS IN THE AREA of the gold mine assets that Lumb is hitching his wagon in the hope of extracting more cash from the venture - probably, at least for him, BIG BUCKS.
First let me give you this quote from an article released some time ago which I noted at the time, but probably is still somewhere on the internet:-
".....Explosive Juniors - These are companies that for the most part possess extremely small market capitalizations, no reserves and no earnings. When drilling results are disappointing these stocks can plummet in price.
But if gold is struck these stocks can fly through the roof. One of the most notable of juniors was Bre-X which climbed from 0.15 C$ a share to over 28$ (post stock split) in just over a year on the news that its mine in Indonesia was maybe the biggest find ever (possibly 200 million ounces of gold).
Then just a few months later Bre-X's shares plummeted to zero on news that its mine in Busang was the biggest fraud of all time.
However, in a full-fledged junior bull market (like the one we saw during the first half of 1996) the price of almost every junior, regardless what they have in the ground (which for most juniors is nothing) will skyrocket.
We will again see this kind of manic rally ............"
Then there is this information from 2004 when Great West previously West African Gold, was acquiring some of these mines like MOCKINGBIRD. This is one of the mines scheduled for distribution to eligible shareholders (if all goes well):
West Africa Gold Inc. Acquires Arizona Gold Mining Interests
Market Wire, July, 2004
West Africa Gold Inc. (OTC BB: WAGI) announced today that it has now completed the acquisition of additional and extremely promising Gold Mining properties, these properties being situated in Arizona, USA. The entire cost of the acquisition of these Gold Mining Properties is being settled through the issue of Restricted Shares of West Africa Gold Inc. Common Stock.
The first North American Gold acquisition by the Company is Golden Sierra Limited which owns the Mineral Rights to the Mockingbird and Great West Gold Project areas in Arizona, USA and comprises of 4 claim groups spread over 2,500 acres in Mohave County.
Previous summary sampling indicated an inferred resource of 10 million tons with Gold grades of 0.1 opt with additional resources of silver and copper. Underground operations and an open pit have previously been established with initial assay results and informal sampling confirming widespread surface gold mineralization some of which is high grade (2 oz. / T) Gold.
The Mockingbird Project consists of approximately 2500 acres of mineral rights located in the heart of the historic Mockingbird Mining District, about 50 miles (80 kilometres) southeast of Las Vegas. The project area is on federal lands about 5 miles (8 km) west of the major Las Vegas / Phoenix highway and within 10 miles (16km) of the Colorado River.
The above is only a part of the portfolio. These virtual holes in the ground can rocket in value once gold fever takes hold. It can happen suddenly, and without warning. WHY?
Because the market cap of the whole of the gold mining sector is less than a number of the single largest companies on the big board - like Microsoft for instance, or Google.
And if any of them did hold gold in any quantity, you would think you had won the lottery.
But don't forget, from what we have seen so far, the slimy toad
(unfair to toads) Lumb will have worked out ways he will finish up with most of the cash. So, keep on to your brokers. They are the ones who can put the pressure on if it starts giving them lots of hassle.
