Re: Huge potential for Focus Metals is evident
in response to
by
posted on
Oct 02, 2011 01:10PM
Making the Lac Knife property the highest grade graphite resource in the world
Brujacman
Just read your blog. Just wanted to follow on with a few comments to what you said below:
"Gary has said that an expanded drilling program would be implemented immediately, http://www.focusmetals.ca/news/press-releases/2011-2/june302011. Unfortunately, some people do not seem to understand the logistics of how this will all come about. The management of Focus Metals made the decision to expand the drilling and released this news immediately, but this should not have been interpreted to mean that the drilling would commence within days or even a couple of weeks. As most investors should be aware, there is the need for a drilling application to be completed, and this can take 30 to 90 days. Further, there is nothing binding the government to issue said permits within this time-frame, but it does give us the general time-frame which we would expect to receive the permit. Since the news release is dated June 30, 2011, I would hope that we may hear news soon, but again this is something completely out of the company's control."
It's a given that it would take some time to go through the required paperwork for the permits, etc...before the drilling can begin, and everyone would be expected to know that. It would be unreasonable to assume that drilling would start instantly after the NR. But it's now October 4 2011. some 3 months after the NR release date (30 June 2011) and nothing has happened. But, we are talking about the "expanded drilling" with the objective to potentially increase the resource estimate. For the basic question at hand, this "increase in resource estimate" can be put aside for now, since the concern for many people is that there is nothing available to support the old (non-compliant) resource estimate. Gary could have taken the option to have the work done in phases: Phase 1, using the new drill results to crank out the NI-43-101 to support/confirm the old estimates. Since without the up-to-date data, the old reports mean nothing to security regulators and investors; and Phase 2 with the "expanded" drill results to revise the Phase 1 report. The revision should be a simple thing to do since the framework of the NI-43-101 report is already available in the Phase 1 report.
I, for one, would be willing to wait for another 3 months or even 6 months for the expanded drilling to begin. Gary should put more priority in Phase 1, i.e. the basic cake (Phase 1) first, and the icing (Phase 2) on the cake later. And all this work can be delegated to another person, since Gary's skills are better suited for promotions and other big things (he's not the person for the mundane stuff like good housekeeping).
FMS must have some (if not all) drill results for Phase 1 available, keeping in mind that they are "material" information and should be released to shareholders within some reasonable time. If there are not enough results to crank out the NI-compliant report then the available results of several holes could be released in NRs. Even the results of 1 hole with a long intersection at shallow depth and high quality (e.g. 50% large flakes) and grade (17% plus) would provide tremendous support to the old results (currently there is nothing to support). Imagine a good gap-up in FMS SP following this NR.
Since you seem to have a good rapport with Gary, would you ask him a few basis questions, e.g., how many holes have been drilled, how much results are available..and is there a drill map (previous, present (any drilling now?) and future/expanded) for Lac Knife?
Somebody said "trust but verify" and I see nothing wrong with that.
goldhunter