Here are the notes from the Dallas Meeting:
First an important caveat: The meeting went fast and I tried to take accurate notes, however, I could be mistaken on any of the points below. The following is what I thought I heard. In addition, many of these notes reflect my opinion of what was said so they may be misleading. If you have questions, try to relay them on to others attending future meetings - or post them. If I see them, I will try to answer them. In other words, do your own due diligence. These contain lots of my impressions and opinions.
There were about 12-14 people there. Front to back meeting lasted about 3 hours - was supposed to last 2 as I understand it.
Meeting went fast. JB opened by going around and introducing himself to everyone there and then made some comments about how he wanted to be sure shareholders were informed and had a chance to participate in the private placement before utilizing the Fairhill's facility. He had seen many deals and Fairhill's was a good deal for Liberty Star but the shareholders deserved to participate first.
The cycle time for permitting is different in each state. In Arizona, we need to have an arrowhead search, which adds 30 to 60 days to the permitting process. Not needed in Alaska. Permitting process is underway in both states, I think he said.
Alaska is ready to drill and we will start there as soon as we have the money. My impression is that it will be first. He figured we need 1-2 million and could start as early as the August - Sept time frame. He is planning 4 holes over each target (12 targets) - each from 1000 to 2000 feet deep. Costs run about $100 per foot up to 1000 feet then $200 over that and even $300 per foot if you get even deeper. Did not say how this might break down.
I got the feeling that once shareholders made their decisions regarding private placements he would figure how much more he needed from Fairhills and then proceed with the drill plans. If you are thinking about participating, you might move fairly quickly - just my gut feeling though.
Someone asked how his health was and he said it was good - maybe needs to do more walking.
Said Salazar over blew the danger to uranium contamination in the Colorado River. A number of groups are suing Salazar to open up the area again - what we need is a change in Admin.
He noted that Northern Dynasty has found a number of other ore bodies on their claims but they are just concentrating on getting Pebble up and running. (What this told me - he did not say this - was that Pebble is not a "one off" deposit but that this caldera is host to many ore bodies and that they are just as likely to be on our claims as on the ND claims.)
None of our claims is on Native Land - they are all on state mining land. However, there is a 40-acre tract (a Native Allotment) on our claims that is native land owned by the mother of one of the Natives that JB knows well. This person is a friend to LBSR and wants to build a camp on his mother's place. He will provide us all services on a leased basis for our drilling operations. By doing this we avoid the lengthy process of getting permits for building the camp - the Natives do not need permits - they can just build at will. Or so it sounded. This will save us a lot a lot of time and helps to build relationships with the natives. This particular individual is very supportive of LBSR and our efforts.
In total, there are about 850 Natives in the entire region. JB mentioned that they held a meeting at the High School gym and he tried to be the first to arrive and the last to leave. He said he tried to talk with the most negative person first and worked his way through all the natives to the least negative. As a result of this personal focus, Liberty Star has a very positive reputation with the Natives and they are positive to having Big Chunk drilled and mined. There is even a Native Corporation in Alaska with over 1 billion in cash that is considering funding LBSR. JB mentioned this but did not elaborate. Overall, it sounded like we were in good standing with the Native population - unlike Northern Dynasty - again, just my impression.
JB estimated that at least 3 million has been spent to fund the environmental groups but the Natives are beginning to grumble that the environmentalists just want to keep them poor and to limit their opportunities. My impression is that he thinks the tide is turning against the environmentalists. LBSR seems to have reasonably good relations with the Natives at this point.
He mentioned we were getting a new Comptroller - someone from Vancouver, but did not mention any names. Mentioned that there were several additional news releases to come soon - probably in the next few weeks.
He feels the Fairhill's deal is a good one for us - mentioned that Fairhills is good to work with - they wanted to be part of the LBSR exploration effort and even paid all legal expenses to put the facility together - around $100,000. Our attorney, et al, reviewed everything and felt it was a good deal for us as well.
JB talked about his improved method of laying out the mine and tailings in what sounded like a big mound of dirt in a ring around the whole deal with a place inside the ring for catching all runoff. I think he said that no water from the mine would ever leave the site but would be recycled. Others may have a better concept of how this might work. He has presented this to environmental officials and was told it solved 90% of environmental issues. Mentioned that Rosemont was (or will be) using this approach in AZ - likely why he made visits to Rosemont in the recent past (my inference).
Mentioned the Chinese company as discussed here previously. There are a number of others looking at JV's including UAE, the Alaska Corporation, and others.
Silver Bell is on hold. There are multiple targets at HM. Mentioned there might be a JV in the cards for part of Tombstone. Not sure I heard all this right.
Talked about the improved resolution with the new software using every ZTEM line on the Big Chunk rather than every other. Said it was 5 to 10 times better than the earlier analysis, which used every other line.
He had not shown many slides at this point and it was about 5 PM. About half the group had to leave and he asked if we wanted to stay and see the slides. Someone said we could just view them on the website and he said they would never be on the website as they were very proprietary. So we stayed to see them. He may have shown them at all the meeting so may not be anything new here. We spent about an hour looking at these and he discussed their implications.
Hope this is of help. Again, do your own due diligence, and if you can possibly make one of the future meetings you should do so. Sorry this is so long but we covered a lot of ground. Please correct any mistakes.
F9
GLTA
