Long time followers of this company know that when they hear "We are pleased….." it is time to hold onto their wallets.
"We are pleased" = "We F#(&ed up"
And Jason Reid did not disappoint with his quote in tonight's meaningless GORO press release about this company spending a total of $100,000 for two property leases.
Part of his quote:
“By dropping Solaga, adding the new Cerro Colorado to our much larger Chamizo property and adding the El Fuego Property to our portfolio…”
Excuse me, Jason, but the last time I saw “100 Grand” and “adding to portfolio” in the same paragraph was last November when you bought $100K of GORO shares for your personal portfolio, a position now underwater after a +16% move in the overall market in the same period.
But the only really meaningful item in this press release was the following:
“the Company has terminated its lease on the Solaga property”
This unfolding event tonight is only noteworthy in the continuing tale of wasteful spending by this management when one considers that, at the beginning of last year, they were telling us what they would spend in 2012 on Solaga exploration.
“To the extent we have the personnel and equipment available during 2012, we will commence exploration activities and have budgeted approximately $600,000 for that purpose..”
Apparently they came up “snake-eyes” on their efforts. But they never released a thing about drilling results throughout 2012 at Solaga.
Now we know that “no news” = “bad news” from these guys. And there’s been a LOT of “no news” in the last 6 months.
Very exciting news...To secure such a vast track of land for next to nothing. My suggestion on how management proceeds with these new hectares.....Build a golf course on it. With a championship course in their back yard, the Reids will definitely visit the region now and maybe be able to....1) figure out when employees are stealing bags of concentrate 2) realize employees are spending too much siesta time down the hill at Pepe's Cantina and Massage 3) figure out why their continue to have water issues....in the tropics 4) allow Jason to inspect the fencing he installed before Papa made him president.
And if they decide to build a fancy club house, Bill can hire the same interior decorator that spent millions decorating their golf villa corporate headquarters featuring full marbled/gold laced baths for each bedroom....I mean office. Hire Davi Reid as club project manager....he has some free time and loves to play bulldozer. He can think up some new snappy greeting cards as he watches the sun set over the signature 14th hole.
this is a standard deal. selling the property in exchange for a royalty but there are several problems:
1) it costs millions to drill
2) it can take years and years to find something worthwhile
3) it requires expertise
The Reid's lack all 3. this is just all a marketing ploy. they toss Almaden 100k and will return the property in a few years.