Monday, February 27, 2006

Gitennes May 2005 AGM

As per usual, when I attend these AGMs, I feel like the Lone Ranger. There was probably one other investor or broker, everyone else was GIT staff, directors, auditor, etc. Mr. Blackwell spoke for half an hour, the geologist at Tucumachay the other half.

These are my impressions and tidbits -

-the main focus is Tucumachay; not much happening elsewhere; Buffalo working Red.

- Talked a lot about the geology etc, way over my head, jasperoid, breccia, mentioned Carlin once. My take: It's no Kupol.

- GIT has applied for Permit C, a 100 page tome to satisfy the government, the environmentalist, the anthropologist, et al. The Peruvian people has 20 days to look at it, then the govt has 20 days and GIT has 10 days, but this is Peru, so it can take anywhere from 2-4 months.

- Once permit is out of the way, GIT wants to drill approx. 30 holes, core drilling, likely last 2 Qtrs, end of July the earliest.

- there's snow in the morning there, but it melts within hours, right now. Apparently, no seasonality so can drill anytime, but this is the Andes.

- GIT has spent $150K so far, needs to spend $1.6 M by 2008.

- after 12000 meters drilled, Inmet can look at the database and can clawback in for 60%.

- deal done that way because Inmet does not want to look bad should there be a multi-million oz there. Inmet has a large office in Peru, but they are like the Maytag repairman, not much to do.

- Tucum. has potentially lots of zinc. Inmet would be interested but only if huge amount. Apparently, they passed on another area close by, so may pass at T if it's not huge.

- geochem testing turnaround time for gold samples is 4 days. Other minerals will take longer.

- Re Urumalqui - nothing much happening there. When I was at the gold show in January, I stopped by Meridian's booth. Their map showed the JV but their rep knew nothing about it. I mentioned this to Mr Blackwell, he said companies like Meridian, being a producer, don't want to be cluster in with exploration companies with their speculative cycles. Supposedly, Meridian haven't mentioned U in their annual reports since 1999

Petromin March 2005 AGM

While I did go to the AGM on Friday at the offices of Lang Michener, I haven’t had time to post until now. I’ve been playing in a hockey tournament over the weekend.

I wasn’t totally satisfied with my stock, so I did something about it. Instead of whining and complaining, I went to the source of the information. You can do it too.

So there they were, Dr Gorrell and Mr Chan plus a tableful of what I take to be insiders. Was I the only small time retail investor there? People were calling each other by first names. Also, there was Mr Curr, the company geologist with all his charts and maps. For this first meeting, I tend to look at the big picture rather than the tiny details. Are these guys trustworthy, credible? Do they have a vision? Etc.

I was impressed, esp with Mr Curr. He knows his geology, has been around a long time and has his network of people to rely on. I’ve talked to Tom Garagan at BGO before and got the same sense of willingness to share knowledge with newbies. I’m not talking about secrets but just geology.

Now to the good stuff – first, a caveat - I made lousy notes, this is what I wrote down. I’m still a relative newbie to oil and gas and the significance of certain details escape me.

Morningside – Mustang Resources is waiting for a drill rig, which should be available during spring break. According to Mr Kerr, the first drill should have hit a good hole but Dick Cheney’s old company Haliburton screwed up by shooting down 10x the amount of sand or something like that. PTR couldn’t really sue them big time. Legal fees would’ve killed PTR.

Redwater – it’s been muddy, maybe have to wait until May for more drilling. Operator is GRR and they have a market cap of $14M vs PTR’s $7M. 80% of GRR’s Redwater results come from the PTR land. Look at the Press Release language of GRR vs PTR. Guess who’s more conservative? An example of PTR’s strategy – land picked up for $43,000 generated $2M worth of drilling and they still get a share of the payout.

Gilby- expecting a cheque in April, something about MGV (operator?) .

Frog Lake – producing a little bit but lots of politics being played. My feeling is that blue sky is not here.

Calmar – I asked my coalbed methane question about Horseshoe Canyon being the hot area today but next year, will it be Manville? They mentioned that land prices in the former area was getting astronomical, so maybe their strategy should be to pick off the land where the CBM formation is deeper but the land is still cheap.

Speaking of CBM, the blue sky play is a CBM play in China which Mr Curr is quite excited about. And this is where Mr Chan’s contacts should come to the fore. There are also other CBM projects but will have to be quiet here as the last thing I want to do is to cause certain land prices to skyrocket and defeat PTR’s strategy of picking up cheap land.

Mr Chan’s trip back east was to drum up money, establishing contacts and that’s where the big volume in December came from. Can institutional money or maybe a TSE listing be around the corner? Still, it’s one step at a time.

I like these guys. They’re trying to build a company. There’ll be lots of brilliant plans that won’t come to fruition, but that’s business. And there’ll be projects that fall into their lap. They’re building a network of contacts. I don’t understand why people call them a pump and dump operation. Pump and dump for pennies? This is a great time to be in commodities.

I feel they are credible people with good vision. Their goal basically is to combine projects with blue sky with projects that yield reliable and conservative cashflow.

Now I know, what I gave you guys was mainly my impressions, with not much details and numbers, it’s up to you to fill in the gaps.