Rainy River Resources

NI 43-101 Resources of 3.42M oz. Au Indicated and 3.17M oz. Au Inferred (Feb. 2011)

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Message: The end of Juniors..end of cash for this sector

Re: The end of Juniors..end of cash for this sector

posted on Sep 30, 2008 07:29PM

Hard points to swallow, but certainly something I have thought a lot about recently. Robert, I actually thought that way back in April/May and re-balanced my portfolios to get rid of anything that had a limited resource base or a limited amount of capital flowing in or in the bank.

But if you look empirically at what has actually happened over the past year... Well, the big gold companies have continued to take minority gold positions in companies they like, and all of the majors have made purchases of properties. In the last month, Kinross with Aurelian and Goldcorp in the Red Lake district. It seems if the deposit is large enough and economical looking, then the time to buy is now, before another company gets their claws into it.

I think RR is large enough that when they get large enough, and in a favorable location. They will get bought out before they bankrupt if they play their cards right.

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