Message to Shareholders from Sitting Bull
posted on
Apr 29, 2009 01:01PM
Creating value through Exploration and Development in the Sierra Madre of Mexico
Kimber has indeed continued to "prove up" more ounces, over the past two years. The name of the game, so to speak, has been capital conservation, due to the credit crunch over the past several months, so Kimber is officially in what is commonly termed "care and maintenance" mode, i.e. no drilling is presently going on. However, before this slowdown occurred, Kimber had several large "hits" involving their drilling program, that to someone like Marius Mare (Chief Geologist) essentially translate into much more gold and silver to add to the deposit. However, doing the formal, professional studies to turn these estimations into actual publishable numbers costs money and are not presently forthcoming. So basically, you've got people on the ground at Kimber who know what they've got there, but have to just sit and wait for their opportunity to present the whole thing to the world in the proper format.
Think about someone who comes into the ER with sudden onset right sided weakness. You and I know he's had a stroke, but we are not going to call the neurologist until we have a CT Scan to confirm what we know. We know from experience what is going on and we probably have a good idea what part of the brain is effected, but we need an objective study like a CT before we publish our findings to the world, so to speak. If we didn't have a CT scanner, could we still call the specialist in and make the report and would it be plausible? Of course, but the standard of care at this time is to get a CT scan, so that's what we do. We are all creatures of protocol to an extent.
In any event, it would do no one any good right now for Kimber to broadcast unofficial results widely. A junior in Kimber's situation at this point is better served to just sit tight and wait under the radar, so to speak. If a company like Kimber had favorable drill results and metallurgy, it would do them no great good to broadcast that all over the airwaves while all the major buyers are still in hibernation, watching and waiting for their stock prices to recover. Remember, these buyers' stock is what they are going to use as currency and/or collateral to buy things when they do finally hit the takeover trail.
Remember the Pac-Man theory. From Kimber's standpoint, there is no reason to use funds to dress Kimber up when no one of size is out there shopping. Jim and his associates, which to a small extent, includes us, already have a controlling interest in the company, so there is no real danger of Kimber being taken out at a low price, but still, why stick something of value out there on the market for 65 cents when it's worth $20 a share to someone with money.
No, the idea is to wait for those buyers to get some money. Gold is rising and continuing to rise, and with it the fortunes of Yamana, Minefinders, Goldcorp, Agnico-Eagle... Any of these is a potential suitor involving a buyout at much higher prices than we are seeing today. I think it would be unwise to think that the higher-ups at any of these companies are not aware of what size deposits Kimber has out there, the metallurgy and the potential for the site to be a 4 million ounce gold equivalent mineable deposit. People talk. I know, because I've been to the gold shows and talked with them myself, and who am I?
Finding opportunities like that is what those guys do for a living. We don't. Finding people who are interested in those opportunities is what Kimber is doing for a living right now, so we can "imagine" that these two groups are out there looking for each other and have found each other. The time for the merger is just not right yet, but it will come.
Also, I would think of things this way, if you take a look at the character of Jim Puplava, a tireless researcher and worker, a man with the skill and ability and desire to uncover every bit of information about every issue he comes into contact with, if you think of this man and then think that he is just sitting around waiting on his hands and that he is not actively involved every day in endeavors that will be of long term benefit for Kimber, then you are making a very mistaken assumption. Bull
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