I attended the SD shareholder Whirlwind Tour meeting at the 4 Points yesterday. Previously, I met Briscoe in a similar venue in a similar format nearly 10 years ago. He's gained a pound or two and his hair has grown gray. But same professionalism, same awesome geological knowledge, same enthusiasm. I missed not seeing he wife again. They do seem to have a grounded, successful relationship.
He started in his very conversant manner discussing his personal history, his achievements in drilling early in his career and then worked into the story of LBSR. Very compelling speaker as he comes off as thoughtful, meaningful and knowledgeable. I've always admired his geological background.
Issues were candidly discussed: the religion of environmentalism and it's affect on Pebble/NAK/Anglo and his decision to not pick a fight he couldn't win. NAK/Anglo's 'full plate' with the resultant minimal beneficial efforts toward BC. Simply, NAK's buy-in isn't the best deal available. He elected to not pick a fight in BH where the long distance from civilization and the proximity to a National Park caused him to drop the BH claims. The current administration seems hellbent to stop all business progress when it comes to developing our natural resources. Salazar's attempts at re-work the national resource political landscape especially in AZ. Toxic financing in previous rounds of dilution. Lawsuits, bitch fests and bickering. China's unwillingness to invest in 'green stake' properties. Liang's connections seem to remain disconnected for the time being. The simple need for a new Wash DC administration. On and on, more and more. Lots can happen in 10 years.
All the while his demeanor to the current crop of shareholders was respectful and almost apologetic. I get the feeling he has some personal IOU's to fulfill.
The current attempt at fundraising will be done with a 1 share + 1 warrant priced at 4 day VWAP moving average, based on date of wire transfer. $50K minimum with standard 144 restrictions on both stock and warrants if exercised immediately. Clearly dilutive but a better deal than Fairhills for the current underwater shareholders.
Up to $25mm cash will be used to drill Big Chunk main targets (I thought it might never happen) and Hay Mtn. Both are fully prepped for drill targets with multiple layers of tech mapped out in Briscoe's own highly prepared way.
Previously I had garnered that AK is only drillable in summer months. New idea: drill in winter where the land is firmer therefore easier to navigate movements while using external lighting to mitigate the constant dark. Interesting new opportunity.
Discussion on block caving mine design for BC seemed interesting. Initial primary hole scrap will be used to create an inverse moat around the block cave mine. Planting foliage, trees and ground cover would make the mine invisible to all those non-airborne. Interesting way of dealing with the tailings by removing all metalics and using the clean talings as slurry with concrete to build from bottom to top in block cave fashion. Would this mine style genuflect appropriately to the alter of the political/environmental religion?
Hay Mt seems to have Briscoe's signature caldera prospect targets included REE's and copper. Much essier to drill in AZ than AK so some early gains may be earned here.
Interestingly to me, contracts for Big Chunk have a 'pay or pay' arrangement with a hard date. Pay for drilling expenses or pay for contract penalty. Briscoe's leaning towards the former. Thank you very much. Date is soon: this summer.
All in all, I remain upbeat on the assets and their potential. Why not? Pebblle is the largest gold/copper/silver mine in the world. ZTEM on BC is ever better. I remain disgusted with the political landscape that development must march through. And I'm horrified at the capitalization of this company. I remember the days of only a couple hundred million SO. Now what, knocking on the door of a billion SO???
Lots can happen in 10 years. But the ultimate question for the investor is: what can happen in the next 10 years?
Deadeye
AI
