Nice talk with Mr. Parkin today. He is as calm as a cucumber on ice at a summer picnic. I told Mr. Parkin about the poll Marcg took and the almost 14 million shares Ihub folks hold. He was a bit amazed that we keep track of each other and our holdings.
He talked about the accuracy of the gold assay that values their gold holdings. The Russian people, as a whole, are pretty well educated, especially in technical fields. Finding well-trained Geologists even today in Russia is very easy. If you go to an African country, you had better bring your own Geo people and will pay $100 k annually per. Much of the assay was done in the Soviet era and mandated by the Soviet Government during the cold war. The areas we hold are also laden with uranium, the principle reason for the assay. Accuracy was rewarded by promotion and inaccuracy led to dismissal. In some areas, there are tailings from digs looking for uranium and they are full of gold. The Soviets were looking for bombs not gold.
The Chukchi Klyon site has no infrastructure and no mining current going on. The distance between Chukchi and Priargunsky is huge so they will run separate plant managing crews. They are producing on our earlier sites but very little. All past mining was surface. Next year, they plan to mine year round.
Big gold companies worldwide are on the hunt for reserves because of the price of gold now and in the future. Some of the big boys have been afraid of Russia because of their Gov't beaurocracy and reputation of being difficult to work with. Barrick is moving into Russia right now, and it seems logical to look for other biggies to do the same. Junior firms that have all permits, contracts,laborers and are ready to go have an obviously greater chance of partnering or getting a buyout. Juniors holding larger quantities of reserves have a greater chance of a big partner or buyout. It's all about the numbers. Siberia is a tightknit community and Viktor Feldbush is well connected. It is very possible other Firms holding reserves could contact Mr. Feldbush to get in with AURC. We may end up with more acquisitions but it is not a focus at this point.
There was no cash involved with the purchase of our properties, only stock. The Russians that sold gave up over 20% of their value to become involved with a firm listed on an American Exchange. Some here whine about being on the Pinks but the Russians are elated. If you think you are antsy for a price rise, imagine how they feel. The third sentence in this paragraph gives some perspective of how great a region in which we live. Mr. Parkin is very aware of how we are greatly undervalued.
As spring approaches, the properties will begin to buzz with activity. Looks like a nice time for the gold industry in a cold country. Obviously Mr. Parkin can't and didn't say anything intimating that we are ripe for a buyout, but he did acknowledge that the big boys call him. I think Mr. Parkin knows exactly what the Big Boys are looking for in an acquisition or partner and will take us there. Once Klyon closes and we have the 7.1 million, we are pretty decent sized. Maybe this isn't such a long-term hold after all.
All in my humble opinion,
Airdale
This post is an opinion and should not be considered reason to buy or sell any security, or to besmirch, belittle or berate any person, religion, cult, creed, race, sex, political party, company or company representative of any age or appearance.
