Sorry, but I don't trust URHG. That Dun Glen "mine" has been a part of several pump and dump and stock scams in the past. And individuals involved with the prior scams are still involved with URHG.
Dun Glen was part of Sky Scientific, one of the most notorious mining stock scams in recent history. It is so famous it is actually used as a case study in several professions, including accounting, geology, and detection of securities fraud. It is the very definition of a "textbook case”. The Chief Geologist for Sky Scientific during the scam was Michael Skopos, who authored the Geological Evaluation Report for URHG. Skopos is so toxic another OTC company once fired him immediately when they discovered his prior work with Sky Scientific. His involvement is not comforting, especially given how the Sky Scientific fraud was conducted. From the AJJ decision against Sky concerning how they ran the fraud using a the fake operation of the Tullulah Mine, which happens to at Dun Glen:
“Particularly illustrative is the case of the Tallulah Mine, a property Sky acquired in early February 1994. (Div. Ex. 1ii.) In a March 1994 press release, Sky predicted full-scale production would begin at Tallulah in four to six weeks. (Div. Ex. 1pp.) According to a press release issued the following month, Tallulah was in full time production, "ten hours per day, seven days per week," and workers were rapidly stockpiling ore for milling. (Div. Ex. 1rr.) In its 1994 Form 10-K, the company again stated that Tallulah was in full time production. (Div. Ex. 2s at 1, 2, 26.) With Wall Street Watch, Sky further exaggerated its claims regarding production at Tallulah. The brochure contained a photograph of miners at work inside a cavern clearly represented as the Tallulah Mine. (Div. Exs. 9a; 86 at 61-62.) It went on to emphasize how easy it had been for Sky to draw riches from the mine: "Getting the gold out,' an expert explains, is like pushing a cart down a supermarket aisle, picking food from the shelves and tossing it into the basket.'" (Div. Ex. 9a.) Levine, when asked, could not identify the expert. (Div. Ex. 86 at 63.)
Tallulah was never in production. (Tr. 296, 301, 307, 535-38.) Sky did make some efforts to construct a processing mill at the Tallulah site, though the result was nothing approaching an actual mining operation engaged in full-time production. (Tr. 284-96, 300-02, 307-10.) Rather, the purpose of these exertions was to dupe Sky's independent auditors when they inspected the site in late June or early July 1994. James C. Garst (Garst), a neighboring landowner who was present during the auditors' visit, recalled:
[Sky miners] waited for the auditor[s] to show up, and at that point the[] [miners] turned the mill on. They had about enough water to run the mill for 30 minutes. They really didn't have any material to run through the mill at that time. The configuration of equipment that they had at that time was not working properly, so they turned it on . . . . [T]he reverse screw wouldn't even turn on its own so several members of the crew stood next to the screw . . . pushing the screw by hand so that it would turn while the auditors were there . . . . The auditors were there for about 30 minutes, [they] left and [the miners] turned the mill off.
(Tr. 295-96.) The brochure photograph of miners at work was purchased from Mail Promotions, the firm Sky hired to print Wall Street Watch. (Div. Ex. 56b at Bates 500773; Tr. 246-48.)
Note that Garst, the "neighboring landowner" who provided testimony about the fraud to the SEC, is likely part of the Garst family (Father? Son? Brother?) that leased URHG the Dun Glen property.
After Sky, the Dun Glen properties were used as part of the pump and dump for Golden Patriot, a Cory Ribotsky/Michael Gelmon scam. Ribotsky was just nailed by the SEC. Then Blackhawk Exploration, another failed stock that is now near worthless. ValOro Mining (CoConnect Inc.) also used a Dun Glen property in their stock promotion (The Sunrise Mine, actually - the same one that Skopos claims to have been in operation for years next door, but ValOro's disclosure states otherwise). And now URHG.
There are a lot of other red flags, too. First is the connection to Noble Consolidated, another notorious stock scam spun out of CMKX. The so-called OTCMarket "filings" do not detail who with Noble got the shares from URHG for the control block. That information seems to be intentionally omitted, which is par for the course with worthless Pink Sheet "filings". I certainly wouldn't want to be in business with anyone from Noble.
And it has yet to be explained why a lower-grade placer mine (0.02 oz/au per yard) would require the specialized ore processing that Noble purports to provide? That sure stinks of desert dirt scam.
Finally, perhaps the biggest red flag of all, is what a public company is doing with a placer operation? No legitimate or serious public company would waste their time and money on a traditional placer operation. Any remaining placer gold in the Continental US is small and low-grade, and not capital intensive. Great for a “weekend warrior” or a small private operation that can use their own money or from friends and family, as that is all that is required, but not for a public company and their overhead. There is no economic sense to a public company running a traditional placer operation, which is why no legitimate public company actually has one. The few that do purport to have placer operations are either complete failures (see PCFG and their Nevada placer property - they processed 57,553 tons of gravel for a whopping 102 ounces of gold recovered), or are just using the “mine” for stock promotion purposes.
Either way, URHG is unlikely to be a good investment long-term. And I will believe the claim of them becoming fully-reporting with the SEC when I see it. There is a lot more to the process than just auditing their financial statements. They will have to file a full registration statement with the SEC and go though the detailed SEC review process. And the required registration statement and exhibits should be quite interesting, as many of the details intentionally omitted from the questionable OTCMarkets “filings” will have to be provided to the SEC.
