Reply to emails & PM Some of you have me confus
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Posted On: 06/06/2017 1:17:32 PM
Reply to emails & PM
Some of you have me confused with IR. I do not speak on behalf of DW, but I also will not step on his toes, or stab him in the back.
The situation right now is extremely fluid, and both companies need to release news/updates to keep their shareholders properly informed. That is not my job.
You have two companies involved in three different countries, different hemispheres and time zones, and you expect the precision of an atomic clock?
DW told me that he had a lot of things to do before he left for Madagascar on Friday night, so there would be a NR early in the week.
But, if Cougar hasn't made its payment, he hasn't made a final decision on financing, is waiting on drilling updates from the field, etc., then there is nothing to release, is there?
You guys need to relax, and let things unfold in their own time frame.
In the mean time, here are a few topics that I feel comfortable talking about in a public forum:
1. From the 04/30 Cougar Quarterly Activities Report:
http://www.asx.com.au/asxpdf/20170501/pdf/43hx6x7y86r9c3.pdf
"Drill samples will be collated and air freighted to Australia for analysis in 500m batches."
The game plan was changed, so this is no longer correct. If you have done your homework, and connected the dots, you think that work is currently being done here:
http://www.indmetops.com.au/
Great assumption, but wrong. This lab will take part in this project down the line, during the PEA phase, but most likely in more of a consultant role.
The bulk of the lab work will be done in Canada, to specific standards for this project. Where? Should be obvious if you read the NI 43-101. In case you are new here:
http://www.AGATlabs.com/about/about-agat.cfm
2. "It is expected that the entire program will take 6 to 8 weeks to complete."
A great deal of time has been spent drilling the 'Secondary Zone', so this clock was recently reset for the 'Main Zone', so...
"The first assay results can be expected in early June."
...odds are slim to (most likely) none that this happens, even for the SZ.
"NI 43-101 Resource Report must be completed by June 30, 2017."
No way in hell.
"NI 43-101 PEA (Preliminary Economic Assessment) must be completed by October 31, 2017."
Doubt it. I think we need to add a month or so to all the above calendar dates. At some point, this will have to be addressed by both companies.
The excellent news here is that the 'Secondary Zone' is a blockbuster by itself, so the time, money, and energy is well spent.
Delays from the original plan should be seen as a positive here. The idea is to find abundant amounts of graphite, right?
3. SBH/Buckton Project
http://www.newswire.ca/news-releases/dni-repo...81881.html
DW is eager to divest this non-core asset. I will be doing some research the next few weeks, focused on one of the elements, in an effort to help him out.
If you are an investor in other resource stocks, and interface with their management, let them know about this. A cash and stock deal is on the table for listed companies.
Deposit has long-term, recoverable Molybdenum (Mo), Nickel (Ni), Uranium (U), Vanadium (V), Zinc (Zn), Copper (Cu), Cobalt (Co), Lithium (Li), Scandium (Sc), Thorium (Th), and Rare Earth Elements: Lanthanum (La), Cerium (Ce), Praseodymium (Pr), Neodymium (Nd), Samarium (Sm), Europium (Eu), Gadolinium (Gd), Terbium (Tb), Dysprosium (Dy), and Yttrium (Y).
4. Even though this month's trip hasn't even begun, DW is scheduling another (which I hope to attend), maybe in late July, most likely sometime in August.
There are many influential people who have yet to see the properties first-hand, like BM, who was unable to make the first trip, and won't make this one either.
There is also management personnel from companies that DW has been/is talking to, and hoping to secure as long-term strategic partners.
As you might imagine, all these guys lead busy lives, so it is difficult to get all of them together in one place at the same time.
(I have also noted that the Reserved for Issuance shares have gone up, while the proposed financing would be cut by about half, if it closed this week.
Makes me wonder if DW has talked the vendor(s) of the two new properties into a cash and stock agreement, like Vohitsara, but I'm just guessing here.)
5. As I have said before, I wouldn't expect the share price to take off anytime soon. It might take a published PEA, an announcement that the two properties have been bought and paid for, maybe a strategic alliance with another company, etc., before DNI is taken seriously.
Why? Because potential investors in the graphite space are treated daily to news releases like:
https://www.juniorminingnetwork.com/junior-mi...oject.html
Craig Scherba, P.Geo., President and CEO of NextSource commented:
"This will allow us to quickly penetrate the market"
According to one of my highly-reliable sources, they barely have access to the property these days, so they are no closer now to obtaining a commercial mining permit than they were five years ago. So, "quickly" in what context? A span of geological time??
"tremendous first-mover"
Sure, just skip over the entire history of graphite production on the island, and the fact that StratMin/Bass Metals, Etablissements Gallois, and Power Stand Development have produced graphite in recent years there.
Also, there is a JV in place between StratMin & Tirupati Carbons, and of course DNI. If they ever get a permit, maybe they can be a tremendous seventh-mover. (Is there such a thing?)
"economic advantage over other companies"
Yeah, except the ones working with saprolite in Madagascar, Brazil, Malawi, etc.
"Phase 2 expansion"
I hate to beat a dead lemur here, but without a commercial permit, the only thing that NEXT shareholders will see an expansion of is their own waistlines!
Note the extensive details of this PR, but with no mention anywhere of their permit status. Just another case of "All pixels, no graphite".
At least they haven't blatantly lied to their shareholders, like Saint Jean, but you can see why anybody who conducts DD is hesitant to buy into any graphite junior, especially one without resources supported by a PEA.
That being said, DNI has already sold more metric tons of graphite wholesale than NEXT and most juniors combined will ever sell. Now, that's tremendous, Craig!
PS: Any follow-up questions, replies to emails, PMs, etc. will go unanswered, so don't waste your time.
Some of you have me confused with IR. I do not speak on behalf of DW, but I also will not step on his toes, or stab him in the back.
The situation right now is extremely fluid, and both companies need to release news/updates to keep their shareholders properly informed. That is not my job.
You have two companies involved in three different countries, different hemispheres and time zones, and you expect the precision of an atomic clock?
DW told me that he had a lot of things to do before he left for Madagascar on Friday night, so there would be a NR early in the week.
But, if Cougar hasn't made its payment, he hasn't made a final decision on financing, is waiting on drilling updates from the field, etc., then there is nothing to release, is there?
You guys need to relax, and let things unfold in their own time frame.
In the mean time, here are a few topics that I feel comfortable talking about in a public forum:
1. From the 04/30 Cougar Quarterly Activities Report:
http://www.asx.com.au/asxpdf/20170501/pdf/43hx6x7y86r9c3.pdf
"Drill samples will be collated and air freighted to Australia for analysis in 500m batches."
The game plan was changed, so this is no longer correct. If you have done your homework, and connected the dots, you think that work is currently being done here:
http://www.indmetops.com.au/
Great assumption, but wrong. This lab will take part in this project down the line, during the PEA phase, but most likely in more of a consultant role.
The bulk of the lab work will be done in Canada, to specific standards for this project. Where? Should be obvious if you read the NI 43-101. In case you are new here:
http://www.AGATlabs.com/about/about-agat.cfm
2. "It is expected that the entire program will take 6 to 8 weeks to complete."
A great deal of time has been spent drilling the 'Secondary Zone', so this clock was recently reset for the 'Main Zone', so...
"The first assay results can be expected in early June."
...odds are slim to (most likely) none that this happens, even for the SZ.
"NI 43-101 Resource Report must be completed by June 30, 2017."
No way in hell.
"NI 43-101 PEA (Preliminary Economic Assessment) must be completed by October 31, 2017."
Doubt it. I think we need to add a month or so to all the above calendar dates. At some point, this will have to be addressed by both companies.
The excellent news here is that the 'Secondary Zone' is a blockbuster by itself, so the time, money, and energy is well spent.
Delays from the original plan should be seen as a positive here. The idea is to find abundant amounts of graphite, right?
3. SBH/Buckton Project
http://www.newswire.ca/news-releases/dni-repo...81881.html
DW is eager to divest this non-core asset. I will be doing some research the next few weeks, focused on one of the elements, in an effort to help him out.
If you are an investor in other resource stocks, and interface with their management, let them know about this. A cash and stock deal is on the table for listed companies.
Deposit has long-term, recoverable Molybdenum (Mo), Nickel (Ni), Uranium (U), Vanadium (V), Zinc (Zn), Copper (Cu), Cobalt (Co), Lithium (Li), Scandium (Sc), Thorium (Th), and Rare Earth Elements: Lanthanum (La), Cerium (Ce), Praseodymium (Pr), Neodymium (Nd), Samarium (Sm), Europium (Eu), Gadolinium (Gd), Terbium (Tb), Dysprosium (Dy), and Yttrium (Y).
4. Even though this month's trip hasn't even begun, DW is scheduling another (which I hope to attend), maybe in late July, most likely sometime in August.
There are many influential people who have yet to see the properties first-hand, like BM, who was unable to make the first trip, and won't make this one either.
There is also management personnel from companies that DW has been/is talking to, and hoping to secure as long-term strategic partners.
As you might imagine, all these guys lead busy lives, so it is difficult to get all of them together in one place at the same time.
(I have also noted that the Reserved for Issuance shares have gone up, while the proposed financing would be cut by about half, if it closed this week.
Makes me wonder if DW has talked the vendor(s) of the two new properties into a cash and stock agreement, like Vohitsara, but I'm just guessing here.)
5. As I have said before, I wouldn't expect the share price to take off anytime soon. It might take a published PEA, an announcement that the two properties have been bought and paid for, maybe a strategic alliance with another company, etc., before DNI is taken seriously.
Why? Because potential investors in the graphite space are treated daily to news releases like:
https://www.juniorminingnetwork.com/junior-mi...oject.html
Craig Scherba, P.Geo., President and CEO of NextSource commented:
"This will allow us to quickly penetrate the market"
According to one of my highly-reliable sources, they barely have access to the property these days, so they are no closer now to obtaining a commercial mining permit than they were five years ago. So, "quickly" in what context? A span of geological time??
"tremendous first-mover"
Sure, just skip over the entire history of graphite production on the island, and the fact that StratMin/Bass Metals, Etablissements Gallois, and Power Stand Development have produced graphite in recent years there.
Also, there is a JV in place between StratMin & Tirupati Carbons, and of course DNI. If they ever get a permit, maybe they can be a tremendous seventh-mover. (Is there such a thing?)
"economic advantage over other companies"
Yeah, except the ones working with saprolite in Madagascar, Brazil, Malawi, etc.
"Phase 2 expansion"
I hate to beat a dead lemur here, but without a commercial permit, the only thing that NEXT shareholders will see an expansion of is their own waistlines!
Note the extensive details of this PR, but with no mention anywhere of their permit status. Just another case of "All pixels, no graphite".
At least they haven't blatantly lied to their shareholders, like Saint Jean, but you can see why anybody who conducts DD is hesitant to buy into any graphite junior, especially one without resources supported by a PEA.
That being said, DNI has already sold more metric tons of graphite wholesale than NEXT and most juniors combined will ever sell. Now, that's tremendous, Craig!
PS: Any follow-up questions, replies to emails, PMs, etc. will go unanswered, so don't waste your time.
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