Ann: Trading Halt, page-111

I’ve tried to refrain from posting here (even reading it too) because of the sh*t that gets peddled but the amount of misinformation just astounds me; so much speculation, pessimism and downright mistakes. I’m not going to address all of but I’d like people to consider a few things.

First, the morning of the day the trading halt was requested the bulk sample update was released to the market: for those watching, you would have noted that barely 1 million shares were put up for sale on Chi at market open (1 MILLION!). Those who keep an eye on CLZ would know this number is usually in the order of several hundred million, and they usually fire in so quickly it suggests that they’re coming from a broker with a very fast connection. I don’t know about you but I would wager a decent bet that those several hundred million are owned by people who ARE in the know (the issued shares we so often see). Why would they stop selling? More came on throughout the day but a mere fraction of what normally does.

Second, the announcement for the trading halt refers to the mining lease. I’ve checked the lease and NOTHING has changed. I’d also bet that this is another blunder by Madhu, who seems to never be able to get any piece of correspondence correct. What are we waiting on folks? The mining PERMIT, not the lease. As for the one who said they need the native title agreement, SMH; they couldn’t get the mining lease without the native title agreement (which they received in April last year if that wasn’t clear)… it was the reason the aboriginal director was brought onboard (Karen/Catherine/whoever).

As for all the talk of the resource not being big enough to warrant a 1/2 billion dollar mill, come on bloke! Why on earth do they need a mill of that calibre? They aren’t trying to process the full resource in 12 months. They are a small game playing with small equipment… bring your expectations down a notch. I’m astounded you’ve stayed in this since .08 and STILL post up a storm. It seems you are rooting for them to fail so you can finally write off your loss.

As for tomorrow, I’m expecting news about the mining permit. Judging by their track record, I wouldn’t be surprised if it came alongside another raise, more likely at .0008, because they’ll expect it to break the 0.001 line again. No way would they be allowed to issue at a 50% discount (0.0005), that’s ridiculous. Now that the bulk sample has recommenced, I remember responses to the ASX inquiry that suggested they can’t setup the Gekko until the mining permit came back.. seems pretty strange that the sample has taken off so much if they can’t setup the Gekko, doesn’t it? The announcement might also include something about the Gekko finally being commissioned, possibly even a consolidation (but doubt it - not just yet).

When do these guys ever ask for a trading halt before bad news? They ask for one to give them time to issue themselves more shares at rock-bottom prices. I might be shocked and see them issue at .001, because they will expect to offload them at centre-point, or even .002 if the keep the good news flowing. Some might ask why they wouldn’t just buy on market.. well that doesn’t get any more money in the companies coffers to support new mining operations, does it?

I don’t believe many people think they are currently mining, vs the bulk sample, but we are well aware that even the bulk sample has potential of netting them 7 figures, enough to keep the ball rolling in the right direction. I think the intention would be to try to slowly pull out ore at Kat Gap to fund further exploration and development of Kat Gap and Forrestania (or even to just pay down some of the loans they gave themselves; if you don’t believe all those random businesses aren’t connected to family/directors in some way, think again). Kat Gap by itself doesn’t have much of a wow factor, but it could very well be what the company needs to grow. They’ve burnt a lot of bridges and stood on a lot of toes, but they could still turn it into something decent in the long run.

And how often do we sit with our thumbs up our .. waiting for news that never comes, yet they’ve updated us on the bulk sample twice in as many weeks, among other announcements. They think the cogs are finally falling into place, and they will try to milk it for everything they can. Yes, their financial position is still shite but anyone saying “I can’t see a way out” is either ignorant or blind. I don’t believe they have any intention of NOT mining this, as long as they can get enough together to get the first pour (assuming the sample is successful). I was also surprised that they missed the riverbed but it’s potentially a good sign for gold; hopefully it proves to be a good surprise.

Finally, yes, this is a gamble at this stage, plain and simple, but the amount of pessimism here only suggests people have given up hope and/or are licking their wounds. I hope they’re successful, but only really to the extent that I still have money sitting with them. They have been so shady to date that I will be happy for the day I finally dispose of my CLZ shares, be it on the market or (hopefully not) in the bin. But for now I’m fairly optimistic that we could finally see some movement, both share value and progress with Kat Gap.

Don’t really know how much of that reads well but what do you expect for a worthless opinion piece written while taking a dump The only time I’ll really ever spend posting. But before I get an ‘insider’ accusation, my speculations are purely based on paying attention to what isn’t said and looking past the fluff. I have had conversations with these guys, who remained tight-lipped, but I was able to infer enough from their words to form my opinion. I have zero inside information, only an educated opinion.

See what tomorrow brings; I need to wipe.