I looked at the Constantine website yesterday and I saw a video I hadn't seen before. I don't know when it went up but it must be relatively new.

 

It discusses the Dowa deal. In the video MacVeigh says that the presidents of BOTH companies have "signed off" on the deal. To me it sounds like they may actually get this deal. I don't think the market has really "believed" it yet and that's understandable because it's SO unprecedented. There's also the fact that the Yukon spinout and the Teck deal didn't mature as was hoped. Both those deals were also rather novel, but, I think both of those deals had their reasons for failure. The Yukon deal was with a Chinese company and when the rubber hit the road those Chinese fellows couldn't really come up with the $3 mill. that was necessary. At the time funding was really drying up anyway for the sector and the Chinese are rather known for demanding changes to deals so they come out in their favor anyway. Even Correa in Ecuador said that dealing with the Chinese was like pulling teeth. The Teck deal may still be up in the air but we are seeing all the majors pull back on their spending do to higher costs and bad economics so I wasn't 'too' surprised that they wouldn't want to commit to an open ended drill program on a property where the resource could only be "guessed at" from the surface based on something as ephemeral as "ions migrating to the surface". I think we'll still see drilling at Golden Mile and probably Phoenix too, but probably not before market sentiment and financing become much more favorable.

 

Now, this Dowa deal sounds different because they already HAVE a nice resource and that resource can logically be expected to double or even triple with more drilling. The property also has a great deal more potential for 'other' deposits besides this first one. They may not be able to nail down the source of those boulders but apparently they have "outcropping" of a silver resource that could make the property valuable regardless of its base metal potential. Then there's the 'logistics' of the property and we all know the value of that.

 

I see that Roulston has recommended buying CEM.V. I haven't read his argument (I don't subscribe to his letter) but I've talked to him a few times and I believe he's highly respected.

 

All in all...I know this deal sounds too good to be true to a lot of folks and I can understand the wariness, but I'm thinking more and more that they may be able to get it, at least in one form or another. The MAIN thing is to get some drills turning at Palmer.