Monday, September 26, 2011

New Money Tree Required ASAP

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Utterly insulting Fire River Gold has released quarterly numbers and cash burn has come in bang on the management estimate of $ 2.5m per month.

Before we award medals to this executive for accuracy in their disclosure practices we need to note that 2 months ago there was $ 7.5m in cash. At the current stupido rate of cash burn this co will be closing in on insolvency in a score of weeks ... exactly as predicted in this space.

And the real kicker is that the hastily constructed, $ 7m CIL circuit will sit idle over the winter because the only feed for it (tailings) is frozen solid until May ... yet another prediction surely bound to come to pass.

An internet poster suggested the Golder Associates report was leaked long ago to a few lucky mutts, and that the upshot from the engineers was that it is not feasible to stop the engress of water from aquifiers, lack of a permit to do so notwithstanding. That is a very good reason to permanently withhold public disclosure from a group of career securities miscreants.

The market has begun to recognize this lame promotion for what it obviously is and one can only hope small public holders see through this hyperbole while they still have two cents to rub together.
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