Osisko Digging In?
posted on
Jul 26, 2010 01:32PM
Historic Discovery Along Porcupine Destor Fault
Since December last year I have had high expectations for Clifton Star's JV with Osisko, so much promise at Duparquet and loads drilling to be done. I thought News Releases would flow and my investment in Clifton Star would gain in value with the steady release of drill assays if they were good. Well not so far!! One cannot tell if the results to date have been good or bad.
Hearing from Osisko about their Duparquet drilling has been like listening for the noise from a tree that’s been felled in the woods... One can see the trees falling from a distance, you're listening for lumber to hit the ground but the sound barely arrives ?*#^.
OK so what's up? Gee, “ya tink” it may be to some big player’s advantage to work to keep Clifton Star’s stock price low, in a market that favors the big players and high-stakes games are common?
Why has the share price retreated from a nice surge? Why are they (Osisko) seemingly sitting on the results from so many holes? Does Osisko or other players with large blocks of stock mean to hold down CFO or to depress the SP so they can get more of Duparquet at fire-sale prices? Are there motives hidden in a proxy battle lost? Many shares are out around $2.00 which might allow for profitable games by those who hold those cards.
Is Osisko surprised that Clifton Star will not need the first loan from them to make the current option payment of $8.5 million, as provided for in the JV agreement? Osisko with JUST a 50/50 deal? Are they playing this deal to end up having it all? Gee “do ya tink”?
Any loan from Osisko that is converted into CFO shares just gives Osisko a bigger piece of the pie and controlling interest in Duparquet in 3.5 years time it seems to me. Would taking this loan be to my advantage?
Paying the option partial payment with current CFO funds IS in my interest, Osisko now must put another $8.5 million into the “ground” at Duparquet, as mapped out in the JV agreement AND no resulting dilution of Clifton Star to Osisko happens.
The NRs that Osisko has produced so far have been lackluster in the description of what has been found at Duparquet and where.Why have the holes not been uploaded to CoreBox so that investors can see for themselves what the new drill results mean? The near silence from Osisko might be suggestive of poor results to some investors and that’s all it would take for them to sell their CFO stock…limited news must mean bad news, some might think.It is now my view that Osisko is not the dream partner I first envisioned… at least not for now.
Another question that looms is; Will Osisko move into the second year of the 4 year JV and spend many more millions on Duparquet? One would think that with over 200 holes drilled and results in hand for most of that drilling, IMO Osisko would be making noises about poor results and limited upside potential at Duparquet IF they were not going to enter a second year in the JV with Clifton Star and IF the results drilling were not positive. I can only guess.
Harry Miller, Clifton Star’s CEO reports from a recent visit to Duparquet that Osisko is spending money repairing the windows and electrical system at the old Beattie Mill facility.What does this imply?
IMO, normally one does not make capital improvements to a property you are going to abandon or hold a short-term view of.Mobile buildings would work fo rOsisko to house their Fall and Winter activities, yet they are doing extensive wiring work and performing other basic repairs to the existing facilities. Seems to me that Osisko is preparing to hunker down for the coming winter and for the long haul.
My question is; When are we going to learn what they have really found, in clear terms with graphical representation of Osisko’s new drilling in CoreBox?Why the perceived Cat and Mouse game?I hate to guess because one is seldom right.
If this unreported, “in the core shack” drilling holds significant intercepts, Clifton Star’s share price could resume its price rise and shareholders be rightly rewarded by having a stake in a world-class gold deposit, in the best location, within Quebec.
This is what I expected to happen all along at Duparquet, but I expected an accelerated pace with Osisko as the JV partner.Is Osisko going to prove out to be a “world-class” JV partner for Clifton Star shareholders?IMO the question is open.
Not investment advice.DYODD. Others are raising the same questions.