Replies to post #1961 on Blox Inc (fka BLXX)

[stimul8]

There are two licenses required: exploration, and mining. Their exploration license was cancelled a few months back (which is why their share price tanked) and there is reasonable evidence to imply it has been granted. This license allows them to explore and conduct geological and mineralogical surveys.

With the exploration license in place, they are now in pursuit of the mining license, which would allow them to extract the presumed gold and diamonds.

They are already doing this in Ghana, which is a separate project than the one in Guinea, and continued these operations while petitioning the Ministry of Mines and Geology to reinstate their license for Guinea operations.

I believe the reaction of shareholders to the cancellation of the exploration license was a bit excessive. Guinea was a new project of theirs, and they weren't even at the point where they could drill and extract. The market reacted as if all operations and projects had ceased, when that wasn't the case.

Few things can happen from here:

1. Mining license isn't granted. I find this outcome to be unlikely, since they have proven operations elsewhere that demonstrates the ability to extract, and their Guinea property is literally surrounded by mining operations conducted by other companies. Rejecting Blox would almost be like racism.

If this outcome DID play out, it wouldn't change a thing for me. They weren't mining Guinea before nor after the SP dropped, and they still have value with Ghana operations. But based on the previous shareholder reactions, I'd expect the SP to suffer.

2. Mining license granted. SP would increase, but start slowly, as investors would still be skeptical and lack confidence in incoming information. They would need to update with an 8K to kick things into gear.

3. Evidence was wrong and exploration license wasn't granted. SP will suffer, but folks would eventually come around to realize nothing had really changed from a shareholder's perspective. Blox would continue existing ops and scope out their next project.