CALAIS RESOURCES: The Colorado miner and prospector (CAAUF) saw its stock in the U.S. halted the other day. The U.S. Securities & Exchange Commission requires Calais Resources to file fresh quarterly reports. The SEC said in its Feb. 24 statement, “The Commission temporarily suspended trading in (Calais) due to a lack of current and accurate information … because (it) has not filed certain periodic reports with the Commission.”
I visited Calais Resources’ Caribou Mine in early February and wrote about the company: See Stockhouse coverage. Calais must run a fine-tooth comb through its financial statements going back many quarters (2005 to 2010) if it ever is to gain acceptance among investors.
Dave Russell, the CEO, chairman and 54-year-old Colorado miner who stepped into the company’s corporate office about 41 days ago, says he expects the financial statement repairs to happen soon. His COO, Dave Young, is a chemist who has been trying to cut corners and keep Calais alive with scants amount of financing the past year, Mr. Russell said.
“Dave Young's largest hurdle, from what I can see over the last year or so, was trying to work through boxes of financials and keep the company going without much financing to work with. In the past eight or so, the financing has come from close associates, friends and family and the company is getting repaired accounting wise and audit wise as we speak,” Mr. Russell told me.
We will see. Mr. Russell assures me none of the top three at the company – Mr. Young, mine founder and 40-years-and-running operator Thomas Hendricks and Mr. Russell himself – has sold any shares in the 80 percent or so run-up in the Pink Sheet shares after my first report was published in early February. See Stockhouse coverage.
“There was no intention of raising money to solve the debt situation before the financials are brought current with the SEC and BCSC,” Mr. Russell said. “I personally hold 100 percent of any shares I have acquired over time and have never sold one share. The specific reason I came directly into the company is that I have a very large investment in the Calais Company and I believe in the geological and mining assets.”
He said Calais will work with the SEC to “develop a timeline and filing schedule to bring the company current.”
The Caribou Mine has potential as a producing open-pit entity, according to my own visit and to conversations I have had with geologists, including Quinton Hennigh of Evolving Gold (redacted). Still, CEO Russell must ensure investors, current and future, that he can get Caribou on track … and solve a debt load that runs above $10 million. Oh yeah, and change the Calais name, would ya?
I bought in at Thom's rec...~@.22...jumped way up, and then was taken down with everything else recently. IMO it was simply a shakeout, so I bought a bunch @.12...couldn't believe it. If anyone had stink bids in under .10, they may have been filled as well. Gotta love it now. Grapevine says that Calandra thinks this could be another LODE, which absolutely flew (also got in on his say-so around 1.40 or so). Whatever one might think of Thom's past, his present has been absolutely straight up and honest. And he has tons of connections and LOTS of market savvy. He's not one I would bet against.
Sitting now waiting to hear the next step, but these are dummies who run and own significant share of this company. Here are some recent opinions on the company from theaureport.com website:
Bob Moriarty, 321gold (02/11/11) "Over 20 Moz. silver and 500 Koz. gold came out of the [Caribou mining] district. The entire place is now owned by Calais Resources. The old timers left a heck of a lot more gold and silver than they took out. . .But the work begun by Tom Hendricks will provide the foundation for a real mining company. In Colorado, the company owns 500 acres of patented ground and has claims on an additional 1,800 acres. The mine is fully permitted for 200-tpd production.
It's a rich deposit with over 100 identified veins with true widths between 1 and 6 meters. It's also high grade, ranging from 9.9 g/t to 19.5 g/t gold with 257 g/t silver to 627 g/t. There have been over 53,000 meters of drilling completed and the core is still around. . .Calais has more than one donkey in the stable. It also owns the White Caps mine located just five miles south of the Round Mountain Gold mine in Nevada. . .This is going to be a really interesting company to follow; there's a lot of gold and a lot of silver still in the ground."
Jay Taylor, J.Taylor's Gold, Energy & Tech Stocks (02/04/11) "I am bringing this company to your attention because it has some good assets and because it is being headed by David Russell, the former president of Apollo Gold, now Brigus Gold. This is a brand new story that is not yet trading in Canada. . .But I believe it is a story that is likely to gain substantial traction very soon. I expect to tell you more about this story in the near future. But what I like about it is that this is the brainchild of David Russell and that his family owns close to one-third of the stock. That means management has skin in the game—hence the desire to generate cash flow to fund exploration and development. Also what I like is a gold/silver resource of approximately 2 Moz. with major upside exploration potential, not only from the property in Colorado but also in Nevada. In summary, I see this as an early stage story that could become a tenbagger or more."
Thom Calandra, Ticker Trax (02/04/11) "The principals have almost everything in place to see their Caribou Mining District, after 40 years and eight failed partnerships, become a reality. . .Calais for its investors likely will repeat what Comstock Mining accomplished. . .reworking debt via convertibles and an equity placement. Result: A quadrupled stock price and cash to advance the alkaline vein system. . .As for the property, Dr. Hennigh, who toured the property about a year ago and worked there as a teenager, hazards a guess that the Caribou has no less than 2 Moz. gold encrusted in its hard galena-laden tunnels and stopes. Historic data from decades of drilling is said to estimate gold grades as thick as .05 oz. g/t in some veins and 10 oz. silver."
Their website is www.calaisresources.com/
Shares Outstanding: 142 M Fully Diluted Share Base: 162 M
WE need a mod here...don't really have time, but would glad to be an assistant. Someone want the position. We can sticky this stuff up at least...GLTA...jt
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