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Tanzanian Royalty Exploration Corp. Message Board

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  • relbochat relbochat Jan 9, 2012 11:56 PM Flag

    IAM Gold/Buckreef Project

    Read the IAM Gold annual reports. Do I have to do all your work for you? And why are you here? Is it to shamelessly pump this stock in the hope that some greater fool will take you out at a higher price? I suggest that if your motives are pure that you would just sit back relax and wait for the JS to produce the results.

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    • so_much_for_the_fundamentals so_much_for_the_fundamentals Jan 10, 2012 11:59 AM Flag

      For the record, IAM Gold "spent $15 million", not the $100 million that you claim.

      Given your sloppy analysis and negative bias, a little more scrutiny of the IAM Gold/Buckreef Project would also in order.

      Lets include discussion of:
      1) The period, duration, and the price of gold factor during that time.
      2) The mining environment in Tanzania during that time.
      3) The mine operator, extent of its operations, and resources at its disposal.
      4) How IAM Gold came by the Buckreef property.
      5) The extent of IAM Gold's commitments in Tanzania.
      6) The circumstances under which IAM Gold decided to terminate operations in Tanzania.
      7) The possibility that the IAM Gold Buckreef project licensed areas did not encompass the areas where "the" surface rubble is located.
      8) The possibility that IAM Gold did not have a license/permission to mine "the" surface rubble.
      9) The possibility that IAM Gold did not have access to "the" surface rubble.
      10) The significance of a Special Mining License.
      11) The possibilities that the expansion of the licensed areas represent for the TRX/STAMICO partnership.


      "Hah. The mine was closed because it was hard to mine and didn't meet production expectations. The easy to mine surface ruble is a pipe dream. Where is that mentioned in the Buckreef 43-101 report. Oh I forgot IAMGold decided to drill $100 million worth of holes but skipped the easy to mine surface ruble. Sinclair had to retract that statement as it violated Canadian disclosure regulations. You won't find that press release on the TRX web site."

      "Long term the stock is headed to zero. The company will eventually exhaust all the cash raised this year. The marquee project is Buckreef, which the previous developer a large well capitalized company said was uneconomical."

      • 1 Reply to so_much_for_the_fundamentals
      • IAM Gold acquired the Buckreef project through the acquisition of Gallery Gold. IAM Gold wrote off over $100 million from its balance sheet when the company determined that the project was not economically viable. Those capitalized costs that were writen off represent money that was spent on the project. Much the same as TRX has $13 million of capitalized costs related to Kigosi.

        So have a discussion, show the investment community your brillant analysis of Buckreef. Start by using assumptions based on reality not hope or hype. Then translate it to per share values. Come up with some real capital expenditures and operating expenses. There are other publically traded miners that operate nearby that disclose costs. Finally compare the valuation to another company, say Seabridge Gold that actuallly has PROVEN RESERVES not just measured resources.

        This is the second project that JS has touted claiming easy to mine surface ruble. Most amazing that his company could make that claim a Buckreef without doing any new geologic studies at Buckreef. Remember he made that statement, which he was forced to retract, prior to any exploration by TRX just a review of data. Personally, I think is a too convenient for a company with inadequate capital to develope and operate a mine to acquire a project with previously unexploited cheap and inexpensive to extract surface ruble. Nobody in the Tanzanian government or STAMICO gave TRX and JS a self funding project multi-hundred million dollar project. Reality is TRX acquired a long shot that requires a significant capital expenditure for $3 million.

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