Replies to post #9608 on Explor Resources Inc. (fka EXSFF)

[againallin]

Thanks Des for taking the time to send your email to us......it really makes sense.....in a previous email I assured Steven that our mutual respect for Chris was intact and will be proven to be on target soon..........again thank you Des!

[exsbull]

Thanks for the update from PDAC Destinator. I know I will be adding to my shares again over the next few weeks especially at this price level. We have more dilution now than when I first bought in and the payout might be less per share but I now own more than 10 times my original investment. Sooner or later others will see that too and start adding just as a few others I know are going to do so as well.

Thanks
exsbull

[texaslady]

Thank you for taking the time to post all the information.

[Gregory_]

I appreciate this post. It is an excellent post. This is why I continue to watch the board and use iHub in general, because of posts like this.

However, I still do not agree with the Chester property purchase. Yes, it is an excellent purchase at rock bottom prices, and this is obviously an excellent time to make such purchases, when one considers that the entire market is under excessive pressure. I do not dispute that at all.

Nevertheless, my thought, which I would never pretend to think holds much weight here, is that you save money for rainy days. Typically, it is a good idea to have some cash lying around for purchases in unforeseen extreme circumstances, such as the current market state. My perspective is that we have no such cash cushion and that we are barely getting by with our future plans. If I felt we did have excess cash lying around to bottom feed, I would greatly applaud the purchase.

What I see is market conditions that will put extreme pressure on our stock in the next year. We have another round of drilling, which is great. If we hit something, which is certainly plausible considering all of the great hits we already have, buying the Chester property will turn out to be a great thing.

On the other hand, if we do not hit anything extraordinary, another private placement will be required, and we will be sub 0.05 in probably 6 months or less.

To be more blunt, the brilliancy of buying Chester hinges on an extremely risky outcome. That is the problem I have with the decision. Consequently, it increases my risk, and I have to scale back my position to accommodate the risk.

I do hope for the brilliant outcome, of course.

[In XS]

Good overview Destinator. I don't want to pick apart every point you made but there are a lot of inaccuracies which you would be the first to point out if someone else posted info on EXS.

The best line among all the good one you wrote was ..

Chris did what all the majors are all waiting to do. He pounced on what he saw to be a really good opportunity and took it before anyone else did – much like he did with TPW. Much like most majors waiting for a downturn in the market to make the acquisitions.

Chris is not a major he is $3M from bankruptcy. He has no money and slim chance of raising funds to ever develop or reap any shareholder value out of Chester.

[In XS]

It was felt that a 3D model would have a major impact on SP. I it didn't.

IMO the all this is good from a geological point of view unfortunately the market real couldn't careless.

[quote3. 3D Model - I discussed with him page 21 and 31 of the 3D model whereby the high Fe-tholeitic volcanic rocks appear to be the most favourable host rocks (p.21) for gold. I pointed to the north limb shown on p.31 that shows a much larger concentration of such high Fe-tholeitic rock and asked if it was reasonable to speculate that there would be a lot more gold up in that area. He confirmed that the few drills holes from the North Limb mimicked the shallow findings of the South Limb and that he would love to be drilling the north limb too and will do so if necessary. He pointed out that both zones (South limb and North limb) of high Fe-tholeitic rock lie adjacent to faults (see blue diabase on page 31 of the 3D model) which are how the gold gets carried. The current market conditions however are keeping him focused on the shallow open pit potential of the South limb area for now.

I just know that the above paragraph / comment will provide plenty of fodder for the anti-Chester acquisition opinions so I provide some input on the Chester property as well later on in this commentary. ][/quote]

[In XS]

I have heard the same fact that European, Asian and US investors have been looking at EXS for years. Nothing has changed except that the SP has gone down. Based on the price direction post PDAC I really find it difficult to believe that there is any serious interest from the conference.

5. Investors – One Chinese delegation came with a shopping list of things they wanted to buy. But it is not just the Chinese looking to Explor. Investors from other countries are interested too. He could not discuss the details of these offers but the gist of the conversation was that if he takes too much money at these share prices he will dilute even more. Yes, he wants to continue drilling but I got the sense that he prefers to take it slow until the market or share price improves. An interesting tid-bit did come out of that conversation which I was always curious about. With all the drilling that has been done, Explor has enough credits to hold onto its mining rights for a very long time even if it does not drill. The bottom line here is that these exploration credits mean that Explor is not at risk of losing the properties for lack of exploration should they decide to put some of them on hold. I think that is a very important bit of information to consider.

[In XS]

Joint Ventures ARE NOT off the table.

Translation

No joint ventures on the table.

[gharma]

Thanks for the time and effort D, to recompense Steven for his great effort in Munich previously and for informing this board of your understandings from discussing with CD.
I am wondering, when you said about KC that you did not much discuss it with CD, and then say

If we hit the zinc then we have a great source of funds

that is you expressing an opinion, right?
I mean, that is not expressing a change in monetary plans as expressed by CD whatever limited discussion you had about KC?
Previously CD has always been resolute that all funds from a property sale will be dividended out to shareholders, whereas you appear to indicate funding further work on other properties by funds from KC, if any come about.
TIA