I would like to take this opportunity to discuss this year with Wolverine and where the future of this company is headed.
First of all let me say that we are all disappointed in the results from this year so let me take a few moments to describe what has taken place.
It has been almost impossible to raise money through the private placement system this year, accredited investors in this sector are all underwater and not inclined to invest more, this caused the company to be woefully short of the funds needed for the drill program that was originally scheduled to be $100k for the 2012 season. This company will only raise money through the private placement system or through joint ventures and has not (up until now) even considered any form of toxic funding, although they have turned down dozens of offers none of them were in the best interest of investors. If you do an I-hub search on Asher and you will see what happens to the companies that get involved in toxic funding.
The decision was made to do part of the drilling and send results to the lab before continuing, in order to conserve capital. The first set of drill results were not as expected so what went wrong?
The geophysics is solid, the company has spent $175k on its ground IP geophysical survey and it is backed up by the company that did it, Abitibi Geophysics is well respected in the industry.
Geophysics is not an exact science however in this particular instance the geophysics is reflecting from a deeper disturbance and the drill program did not go deep enough.
Why drill at 50 degrees? Geological formations are often like a layer cake, but usually tilted a bit (or a lot). What the drilling is trying to do is cut as many layers as possible, they do this by drilling at a normal (90 degree angle) to the strata, and this usually causes drilling to be at some angle.
Some more questions with short answers
What next? This property needs a proper drill program and that means about $1 million in drilling costs, the best way to get that done is through a joint venture with another company. This makes a lot more sense than this company trying to pull in private placement investors in this climate.
Is the company done? Absolutely not, there is a game plan going forward and it will be revealed when all items and issues are settled.
Did I sell any shares? No I still own over 5 million shares of this company.
Is the management ethical and straight forward? Absolutely or I would not be here.
Another misconception, I am not Investor Relations; I own a Business Development company, however I will take the time for any Wolverine investor that calls me on the telephone.
I am finished with the I-hub circus; a message system that allows bold faced lies about public officials and companies has no credibility in my book.
Here is a link to the geophysics in picture format which is the heart of this discovery, if you are an investor you should know what you are invested in http://tinyurl.com/a23br7h
