like I said at the bottom of this post, it had to happen eventually... too bad I dont own it, but I still feel the same in that what they got today was nothing compared to what they would have got if they kept drilling...
Did you know? Buckshot26 has been a member since December 11, 2007
Re: CPQ News -- Buckshot
posted on Sep 28, 09 10:32PM
all in my opinion. do your own dd, this is not investment advice.
......
Monmick- CPQ...oh god to I cringe when I think about this one.
A very very nice asset being run into the ground by either the most incompetent management I have ever come across or sandbagged by some of the most clever.
The report you have posted just furthers my beliefs, I mean there isn't one thing new in that release...the company hasn't done one damn thing in over a year now. I was furious with them last year because as with most companies I follow, I was in pretty close contact with them. I thought I was on top of it. I still remeber asking them late summer-maybe a year ago to the day give or take a few weeks when we might be getting some more assays to which they replied that there weren't any left, that the drilling had stopped a couple of months back. They apparently felt they didn't need to inform anyone. Well except for informing themselves as you saw a big spike in Insider sales which in hindsight were very well timed (a lot above $5- check out chief geologist ken Mcnaughtons timing if you want a laugh).
Best part was that months after my conversation with them they still maintained or at least insinuated on their website and posted corporate presentations that they were still aggressively drilling up the property. Which made sense as the deposit was wide open, east west, south west and at depth. They went on to tell me they wanted to do a resource calculation... I said why, it's pretty easy to see you have 4million ounces (sure enough I nailed that calculation)...besides, theres nothing stopping a company from continuing to drill out a deposit as a 43-101 is being thrown together.
I asked them how much money they had left...they said $5million. I asked them what the burn rate was...they said $300k. I went off my bloody rocker... shortly after Robert Quatermain resigned saving them some cash I supposse but you have to wonder how much, if any, money could they possibly have left??? Here they sit a year later and the only reason its above $2 is that Rick Rule has been talking them up.
I'm sure it eventually gets bought out, but I'd bet my life that whatever they get will pale in comparisson to what they would have been offered if they continued drilling to this day...morale of the story is you drill until a deposit is defined always (unless weather prevent year round access) anything less is pure stupidity.
My rant for the evening :)
Best regards,
Buck
