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Mike Niehuser
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Mike Niehuser is the founder of Beacon Rock Research, LLC which produces research for an institutional audience and focuses on precious, base and industrial metals, and substitutes, oil and gas, alternative energy, as well as communications and human resources. Mr. Niehuser was nominated to... More
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  • GoGold on Path of Gammon Gold’s Success in Mexico
    GoGold Resources Inc. (OTC:GLGDF) appears to be repeating the success of Gammon Gold’s, now AuRico Gold Inc. (NYSE:AUQ), 4.4 million ounce gold equivalent Ocampo gold-silver mine (with annual production of over 100,000 ounces of gold and four million ounces of silver annually) in Chihuahua State, Mexico. On February 15, 2011, about six months ago, GoGold announced the acquisition of the San Diego project in Durango State, Mexico. In our opinion, the opportunity to repeat the success at Ocampo reminds us of our investment idea pick of ATAC Resources Ltd. (C$1.15 per share as of September 9, 2009 reaching a high of C$10.34 per share on July 25, 2011).
    GoGold President and CEO Terry Coughlan was a co-founder and former director and Vice President of Gammon Gold. Brad Langille, former CEO and also a co-founder of Gammon Gold, is a Strategic Advisor to GoGold. Following the discovery and development of Ocampo, Langille, with 15 years of business experience in Mexico, pulled together the San Diego gold-silver project which was brought into GoGold in April of 2011. We believe that GoGold has the potential, with the proven experience of the co-founders of Gammon Gold, to retrace the steps of the success at Ocampo. Upon the announcement of the acquisition, Terry Couglan commented that:
    "This is a significant milestone for us, based on my experience in Mexico, the work the MDD (Minera Dorango Dorado S.A. DE C.V., 100% owned by GoGold), team has completed over the past two years, with regards to consolidating such a large group of claims is highly commendable. The area is reminiscent of when I first visited Ocampo in 1999 where we developed one of the largest gold mines in Mexico which now employs over 3,000 people.”
    The San Diego Project in Durango State, Mexico
    The San Diego project has many similarities to Ocampo. Both projects are in highly altered low-sulfidization epithermal systems with gold and silver mineralization in the Sierra Madre Occidental gold-silver belt. Like Ocampo, San Diego appears to have the potential to host a number of large, lower-grade areas amenable to open pit mining, and higher-grades with potential for underground mining. The Ocampo project covers about 15,000 hectares, compared to the district-sized San Diego project including over 70,000 hectares (with a strike length of 35 kilometers and 25 mineralized targets). GoGold plans to rapidly build a million ounce gold equivalent resource in the San Diego North (Area A), focusing on the Breccia Hill zone, with the expectation of identifying multiple potential resources in other areas.

    Prior to Brad Langille pulling the disparate properties together, the San Diego project had not been explored with systematic mapping or modern mining methods. The project area includes evidence of numerous historic past producing hand-dug mines, reportedly dating back to the 1700’s. San Diego has been mined by numerous artisanal miners over the decades, many of whom are now working for GoGold. Langille was directed to the San Diego project area by both the then current Governor of Durango State and the Mining Minister, and continues to enjoy encouragement by the government and local community.
    The project area benefits from the excellent availability of existing infrastructure. It is currently possible to drive by road to Breccia Hill, GoGold’s most advanced target at San Diego North. The local terrain is generally forgiving for exploration geologists. The project is easily traversed in low areas between significantly altered hillside outcrops. The project is about a three and a half hour drive from Durango City, Mexico, and management reports that the project is located near a planned highway. There is adequate water and a transmission line provides power to a nearby town. 
    San Diego North (Area A) – Breccia Hill
    GoGold has taken thousands of samples from outcrops, trenches and historic underground workings at San Diego. The Breccia Hill has attractively exposed alteration over a several hundred meter hillside. The area of interest is generally defined in an area 400 meters in length, 160 meters wide and vertical relief of 150 meters. The weatherized outcroppings readily visible over 100 meters, with numerous historic workings, is attractive for exploration testing, and possibly mining. The exposed hillside suggests a low strip ratio, which should be viewed positively in future economic assessments. 
    GoGold’s stock price reflects early enthusiasm for their district size project and a successful rock sampling program at Breccia Hill. GoGold has taken 918 samples within the San Diego North Breccia Hill Open Pit Target, with an arithmetic average of 1.52 g/t gold equivalent (1.23 g/t gold and 13.15 g/t silver). Notable trench samples include L-004, over sixty meters grading 1.26 g/t gold equivalent (0.68 g/t gold and 26.7 g/t silver) and L-008, over 29.9 meters grading 3.56 g/t gold equivalent (2.63 g/t gold and 43.1 g/t silver).
    They have completed a substantial amount of underground sampling over wide intervals, also suggesting potential for mining lower grades by open pit. Highlights include SDL-07, over 49 meters grading 0.44 g/t gold equivalent (0.33 g/t gold and 5.01 g/t silver) plus higher grades over 36 meters of 3.12 g/t gold equivalent (2.81 g/t gold and 14.32 g/t silver) and SDL-31, with 27.4 meters grading 1.44 g/t gold equivalent (0.78 g/t gold and 30.55 g/t silver).
    Some shorter intervals with higher grades than normally expected for open pit mining may suggest further potential for underground mining. Highlights include SDL-52, over two intervals grading 30.19 g/t gold equivalent (23.86 g/t gold and 291.33 g/t silver). High grades with slightly higher intervals minimizing dilution include SDL-28, over 7.84 meters grading 13.25 g/t gold (12.51 g/t gold and 34.12 g/t silver), SDL-13, over 5.3 meters grading 14.17 gold equivalent (12.68 g/t gold and 68.5 g/t silver), and SDL-26, over 5.82 meters grading 9.75 g/t gold equivalent (8.66 g/t gold and 50.5 g/t silver).
    San Diego East (Area C) – Chispa De Oro
    In addition to the successful sampling programs at San Diego North, GoGold recently released sampling results at San Diego East (Area C) at its Chispa De Oro target. GoGold believes that they have discovered a 2,500 meter by 750 meter area with wide spread gold and silver mineralization. Within this area, GoGold mapped a 1,000 meter by 750 meter area, and has taken 1,380 samples with a weighted average of 0.40 gold equivalent (0.205 g/t gold and 9.20 g/t silver). While these assays at Chispa De Oro are below that of Breccia Hill, with additional exploration success these results may add to the potential for Chispa De Oro to represent another large bulk tonnage target within the San Diego Project. 
    Like Breccia Hill, Chispa De Oro may have a higher grade component that may accent wide-spread low-grade gold and silver mineralization. GoGold noted one structure sampling over 24 meters of 9.72 g/t gold (7.62 g/t gold and 96.48 g/t silver). The true width of this interval is 2.0 meters, and one sample, is 65.20 g/t gold equivalent (57.16 g/t gold and 369.97 g/t silver). Understanding of Chispa De Oro is early with the potential to add both low and high grade resources.
    The release on initial sampling at Chispa De Oro is also only the first release of results on San Diego East. We anticipate that GoGold will learn as they go, and there is the opportunity for the company to complete a program at San Diego East, that when combined with San Diego North, offers investors an improved perspective for future exploration. 
    Our Early Assessment of GoGold Resources
    We believe the comparison to the upside of ATAC at the time of our investment idea report in 2009 is representative of the investment opportunity with GoGold, but the side-by-side comparison should prompt readers to apply additional scrutiny to our opinion. At the time of the report, ATAC had completed a significant number of drilling and metallurgical studies. While ATAC at the time of our report was more advanced than GoGold, both companies have indications of high grades over wide intervals, with a large land positions and potential for mineralization along trend, and are in political jurisdictions that are very friendly to resource exploration and the mining industry.
    We believe GoGold has some advantages over ATAC. The level of infrastructure, including water, power, and road access, is superior to ATAC, which should allow a more rapid and year-round exploration. They are also without the recognized constraints facing ATAC of remoteness and harsh winter weather conditions. In addition, investors may recognize similarities between Ocampo and San Diego, and readily visualize the potential for GoGold’s team to repeat their success with a similar project in a similar geologic mineral belt in Mexico.
    Having not completed any drilling as of yet, GoGold should be recognized as early but with interesting potential. The Breccia Hill and Chispa De Oro areas comprise a very small portion of GoGold’s total land position, leaving open the opportunity for discovering additional areas of higher-grade mineralization at San Diego. GoGold has plans for drilling 11,000 meters, with drill results and new flow accelerating in September with the expectation of completing the first resource estimate early in 2012. Should drill results support sampling programs, GoGold may be well on its way to building a promising resource with momentum to explore the balance of the district size land position.
    [GoGold reports only 55.9 million shares outstanding (59.7 million diluted) with 47% insider ownership and 37% by institutional investors. As of March 31, 2011 GoGold reported C$6,275,682 in cash. Typical of resource exploration companies, GoGold will complete additional equity offerings to complete an appropriate level of exploration at its San Diego project.] 
    Aug 16 6:29 PM | Link | Comment!
  • Sonic Foundry Reports Record Third Quarter Revenues
    Sonic Foundry, Inc. (NASDAQ:SOFO) reported record revenues and billings in what seasonally is typically its strongest financial quarter. This is consistent with the seasonal buying trends of higher education, its largest customer segment, whose budget year concludes in June, and the commencement of a new budget year. These seasonal trends in the higher education segment may be offset (or made less volatile) due to increasing service (events) revenues to a rebounding corporate segment.
    Billings roughly consist of one third new customers, and two thirds existing customers. Existing customers generally provide a source of business growth, as experience generally leads to wider adoption within institutions. In addition, many of these existing customers continue to rely on Mediasite recorders that aged beyond their warranty and ability to service. These recorder units also may not accommodate software upgrades and otherwise are due for replacement to maintain increasing client user expectations. Sonic Foundry has offered discounts on these “refresh units,” both boosting sales revenues and numbers of units and accompanying lower gross margins. Management believes that the ongoing financial annuity and benefit of supporting its client base, possibly leading to greater adoption and sales penetration, more than makes up for temporary reduction in gross margins.
    Mediasite 6 Introduction May Transcend Sonic Foundry Mediasite Value Proposition
    At the commencement of the recent financial crisis, Sonic Foundry retrenched focusing nearly entirely on the higher education segment (its legacy customer segment and obvious value proposition), carefully managing product development to accommodate Mac users and currently accelerating trends for richer viewing experiences on proliferating mobile devices (especially demanded by students). 
    Mediasite recorders accept and synchronize a wide variety of rich media (video, audio, graphics, etc.) data for transmission over the Internet, creating a positive viewing experience for a live audience or replay on demand. This provides both a low-cost recording opportunity with minimal distraction for the presenter, and an exceptionally robust viewing opportunity, fully capitalizing on the flexibility and exponential communication opportunities of the Internet. This is ideally suited for the higher education segment, which accommodates demanding instructors and an increasing competitive market for students with increasing expectations for online learning options, demanding a higher quality learning experience.
    Sonic Foundry has completed developments beyond capture and viewing to providing a stable platform for institutional IT personnel. This includes both host and archival or managing burgeoning numbers of recorded lectures. They have also focused on aligning with major trends in technology combined with customer preferences. This is anticipated with a major product release of Mediasite 6 in August of 2011 to accommodate viewing rich media on mobile devices. These will initially be rolled out in the more controlled environment of discrete events deployments and later expanded to the institutionalized customer base. Cumulative product development, recently with introduction of lighter mobile recording units and backroom support, with the expanded rich viewing experience, should push Sonic Foundry to an even higher leadership position as viewers move from laptops to a variety of mobile viewing platforms.
    Fiscal 2011 Third Quarter Financial Discussion:
    Sonic Foundry reported financial results for the third quarter of its 2011 fiscal year ending June 30, 2011. Sonic Foundry reported revenues of $7.1 million in 3Q11, substantially above our estimate of $6.3 million, and about 26% above revenues of $5.6 million in 3Q10. Revenues from product sales were $3.9 million in 3Q11, about 28% over actual results for 3Q10, and well above our estimate for the quarter, of $3.1 million. This was due to the both seasonally stronger sales from the education segment in the third quarter. Revenues from services were $3.1 million in 3Q11, up 23% over $2.5 million in 3Q10, meeting our estimate of $3.15 million. Notably, event services and hosting revenues were $1.3 million in 3Q11, up 38% over 3Q10. Rapid growth in event services may lead to softening seasonality in seasonally weaker first and second quarters. 
    Total billings were $7.5 million in 3Q11, up 26% from $6.0 million in 3Q10. Product billings were $4.0 million in 3Q11, up 28% from $3.1 million in 3Q10, and service billings (for support, hosting, training, and events) were $3.5 million in 3Q11, up 24% from $2.9 million in 3Q10. Notably, billings for events and hosting services were $1.4 million, an increase of 47% over 3Q10. Billings are not revenues, but they are a helpful indicator of future revenues, and the increase in billings in the quarter is representative of the seasonality related to education in the third and fourth quarters of the fiscal year. As contracts are signed and billed, cash is collected, increasing both cash balances and unearned income, and billings become an important metric for understanding and estimating cash flow.
    In the 2Q11 and 2Q10, 66% of billings were to preexisting customers. In 3Q11, billings to education customers totaled 65%, 28% for corporate customers, 3% to government customers and 4% to other customers. International billings were 20% of total billings in 3Q11 compared to 19% in 3Q10. It is interesting that some concerns have registered among investors for sales opportunities for the Middle East or Japan. This might be offset with the potential for a weaker U.S. Dollar. Billings to existing customers, by segment, or internationally, have been remarkably consistent over the years.
    Gross margin was about 69.5% in 3Q11, down from 74.4% in 3Q10. The lower gross profit reflected increased direct and outsourced event labor costs (primarily closed captioning) and lower markups with “refresh” units (discounted units for customers whose recorders had reached the end of hardware warranty eligibility). Average sale price of units decreased to $9,500 per unit in 3Q11, down from $9,900 in 3Q10. Sonic Foundry shipped a record 419 units in 3Q11, up from 313 units in 3Q10. Sales of rack-to-mobile units remained basically unchanged at 2.9 units to one in 3Q11, compared to 2.5 units to one in 3Q10. It was noted on the conference call that there is good potential for gross margin expansion. Overall, increasing revenues exceeded declines in gross margins, allowing Sonic Foundry to report an increase in gross income to $4.9 million in 3Q11, up 17.8% from $4.2 million in 2Q10, and beating our estimate of $4.5 million. 
    Sonic Foundry has maintained excellent operating expense control during a period of growing sales and seasonality in the education segment. Operating expenses were $4.6 million in 3Q11, up 18.5% from $3.9 million in 3Q10. Selling and marketing expense was $3.0 million in 3Q11, or 42.1% of sales, compared to $2.5 million in 3Q10, or 44.5% of sales. While this was above our estimate of $2.7 million for the quarter, and 19% above $2.5 million in 3Q10, this was notably lower as a percentage of sales. In addition, general and administrative expenses were $720,000 in 3Q11, up 25.9% over $572,000 in 3Q10 due to benefits and stock compensation, but close to our estimate of $700,000. Product development was $863,000 in 3Q11, slightly above $777,000 in 3Q10, and our estimate of $800,000 for the quarter. The slight increase in product development, for the fourth quarter in a row, is associated with higher stock compensation. Product development is important for the continual improvement in the value proposition to customers, as well as assimilation of Mediasite with market trends for viewing presentations on mobile devices. 
    We find it interesting that while total operating expenses of $4.6 million were the highest in three years, total operating expenses as a percentage of revenues declined to 64.4% in 3Q11, down from 68.5% in 3Q10, and the lowest level in the company’s history. This is an indication of improving operating leverage, as revenues and billings increase, and as the company continues to demonstrate strong operating expense management. Sonic Foundry reported operating income of $361,000 in 3Q11, slightly better than an operating profit of $330,000 in 3Q10. Sonic Foundry reported a net income of $212,000 in 3Q11, or $0.06 per share, meeting our net income estimate, and net income of $203,000 or $0.06 per share in 3Q10. (They noted that Non-GAAP earnings were $1.1 million in 3Q11, or $0.26 per share, compared to $853,000 in 3Q10, or $0.23 per share (diluted).)
    Unearned revenues were $5.7 million at the end of 3Q11, up slightly from $5.3 million in 2Q11. Unearned income characteristically increases in the second half of its fiscal year and runs off in the first half. Sonic Foundry reported cash balances of $4.2 million at the end of 2Q11, unchanged from the previous quarter. As of June 30, 2011, Sonic Foundry had no debt outstanding on its revolving credit line. They appear to have more adequate capital and liquidity with growing confidence in cash flow from operations to meet required working capital needs. 
    Earlier Guidance and Our Model
    On its 1Q11 conference call, management offered a wide range of potential quarterly year-over-year sales growth of 10% to 40%. Currently, management anticipates a typically strong fourth quarter, which based on prior seasonality, is highly likely and predictable. Based on the progress year to date, management affirms that top line revenue growth for fiscal 2011 should reach 20% over fiscal 2010 results. Also, as in prior years, higher levels of sales and marketing in the first half of the fiscal year lead to higher revenues in the later half, in addition to higher billings and unearned income. While management has not offered guidance for fiscal 2012, it is clear that they are optimistic about their product offering and pipeline of business to domestic higher education, international sales to Japan and possibly the Middle East, as well as high growth in event services. While they do not anticipate increasing headcount in general and administrative, some increases are anticipated in sales and marketing as well as product development. Lastly, improving cash flow, the result of higher revenues, and improving gross and operating margins, should lead to higher cash flow, providing both working capital and retirement of long-term debt.
    We were satisfied with 3Q11 financial results meeting or exceeding our earnings model. We were not only surprised by the increase sales of units but also by the combination of higher revenues with weaker gross margins offset to meet our earnings forecast. For this reason, we are leaving our model unchanged except for a slight upward adjustment for revenues, leaving our earnings estimate unchanged for 4Q11 and fiscal 2012. Based on our model we anticipate earnings per share of $0.03 and $0.57 in fiscal 2011 and 2012, respectively. In addition, our model forecasts sales per share of $6.69 and $7.08 in fiscal 2011 and 2012, respectively.
    Conclusion and Recommendation
    Sonic Foundry reported record revenue growth in both products and services, with notable increases in its events services, in 3Q11, the first of two of its seasonally stronger quarters. They continue to demonstrate increasing cash flow and operating leverage and anticipate new product introductions in the current quarter to accommodate changes in mobile devices, which may further secure their leadership position. While somewhat concerned about uncertain economic conditions, Sonic Foundry is well positioned with a product, now regarded as indispensable, both to institutions looking for cost effective means to deliver products, as well as viewers increasingly demanding a higher quality online learning experience.
    Management previously noted increasing activity for mergers and acquisitions in the education segment at 4x to 8x sales. This was not unusual during high periods of growth prior to the economic downturn in 2008. We reiterate our Buy rating and our 12-month price target to $25.00 per share, about 3.5x forward sales per share, or about 40x our fiscal 2012 earnings forecast. We have increasing confidence in our earnings forecast due to the company’s value proposition, industry trends for lecture capture on demand converging with mobile devices, and sustained organic revenue growth.
    Aug 08 11:36 PM | Link | Comment!
  • Namibia Rare Earths Confirms Exceptional Heavy Rare Earth Discovery
    Namibia Rare Earths Inc. (TSX: NRE) reported initial drill results from its 7,500 meter, first phase exploration program, at its 100% owned 740 square kilometer district size Lofdal Rare Earth Project in north western Namibia. The first phase of drilling includes 18 targets within 25 square kilometers of the 200 square kilometer Lofdal Carbonatite Complex. Though management qualified the results as having “exceptional heavy rare earth enrichment” this may have understated the importance of this initial round. Drill results independently identified discoveries in two distinct areas (with an additional eight areas remaining to be tested in the first phase). 
    The first phase may already be considered a success with only 2,300 meters of drilling. The goal of the first phase of this program is to identify areas with the potential of building a resource. Of the 24 drill holes completed in the two areas 20 of the drill holes encountered intervals considered to be heavy rare earth enriched [defined as heavy rare earth elements (HREE) comprising 10% or more of the total rare earth elements (NASDAQ:TREE)]. In addition to two discoveries, the initial results in these two areas alone may qualify for the 15,000 meter second phase with the expectation of defining an NI 43-101 compliant resource in twelve months. 
    Drill Rig at Lofdal Carbonatite Project
    Source: Namibia Rare Earths
    The drill targets were selected based on the combination of geophysical programs with sampling of high grades and heavy rare earth enrichment. The drill results on average include five to fifteen meter intervals with 0.3% to 1.5% TREEs, with over 63% to 92% HREE. Management is very pleased with the competitiveness of these results, as they are targeting intervals with 0.5% to 3.0% TREE. As a point of comparison, with the composition of heavy rare earth elements, 0.3% TREE in Namibia Rare Earths’ case, this may roughly equate to $1,000 to $1,500 per tonne, or a gold equivalent of about one ounce per tonne. Management is also impressed with the consistency of grades and high levels of HREEs which may be associated with large scale hydrothermal systems. This may lead to both a higher percentage of heavy rare earths as well as good potential to add tonnes.
    Summary of Initial Phase One Drill Results
    Mineralization in Area 4 appears to be broadly associated with large scale hydrothermal systems, rather than being restricted to discrete dykes, with consistent mineralization over a strike length of about 800 meters on surface. Significant rare earth mineralization was encountered in all ten holes which cover 180 meters of the potential strike length. Highlights include 0.49% TREO (total rare earth oxides) over 9.0 meters with 75.5% HREE enrichment (including 1.05% TREO over 2.89 meters with 88.6% HREE enrichment) and 0.34% TREO over 11.0 meters with 81.7% HREE enrichment (including 1.38% TREO over 1.0 meters with 97.0% HREE enrichment). About half of the drill holes completed at Area 4 are still pending assays.
    The targets in Area 5 cover a strike length of about 1.6 kilometers and include a variety of host rock, including carbonatites similar to what was seen in Area 4, as well as brecciated altered zones. Significant rare earth mineralization was intersected in ten of the fourteen holes in Area 5. Rare earth mineralization with 1% to 5% sulfides may provide a means to locate higher grade zones. Highlights include 0.64% TREO over 5.12 meters with 92.4% HREE enrichment (including 1.29% TREO over 0.90 meters with 93.8% HREE enrichment) and 0.30% TREO over 15.0 meters with 80.0% HREE enrichment (including 1.28% TREO over 1.0 meter with 94.5% HREE enrichment). Over half of the drill holes in Area 5 are pending assays.
    Namibia Rare Earths plans to complete some additional confirmation drilling in Area 4 and 5 but will be testing other areas as well. Additional drilling in Area 4 and Area 5 may further test mineralized areas laterally and at depth. This may be helpful to determine how drill results relate to higher grades or how higher levels of heavy rare earths were encountered in sampling of outcrops at surface. This may be useful both to understand the manner in which mineralization took place, which is important for locating additional drill holes, as well as gaining confidence in estimating a resource.
    While targets in Area 4 and 5 may support a resource, Namibia Rare Earth intends on completing testing of identified priority targets. Though targets successfully drilled in Area 4 and 5 may be expanded or connected, with potential to build a higher number of tonnes than expected, other areas may provide a significant number of additional tonnes. Namibia Rare Earths raised C$28.75 million as part of its initial public offering and is adequately funded to complete this major drill program with the ability to add additional drill rigs to accelerate exploration and define a resource.
     In addition to high grades of TREO, and a high percentage of HREE, recoveries are important to determine economics. Namibia Rare Earths has completed a level of drilling sufficient to commence metallurgical studies. One of Namibia Rare Earths’ directors is employed by Molycorp, Inc. (NYSE: MCP), which has a relatively low percentage of heavy rare earths at its Mountain Pass project in California. Molycorp is the sole producer of rare earth elements outside of China. This relationship may be helpful in determining the overall recoverability and economics of a potential resource at Lofdal.
    Company Background
    Namibia has a positive mining history. The metamorphic rock underlying the mineralized carbonatite rock hosting the mineralization is about two billion years old. It is believed that the carbonatite structures were initially mineralized with light rare earths by an early hydrothermal event, followed by later events bringing in the heavy rare earths. The project area is easily accessible by paved roads, 450 kilometers from Windhoek, the capital of Namibia. Lofdal had not been systematically explored for rare earth elements until 2008. 
    The project was originally held by Etruscan Resources and advanced under the leadership of its CEO Gerry McConnell and VP of Exploration Don Burton. Etruscan was later acquired by Endeavor Mining Corporation (TSX: EDV) and the Namibian assets were spun out in an initial public offering of Namibia Rare Earths in April of 2011. Endeavor maintains a 38.5% ownership interest in Namibia Rare Earths. McConnell is currently the CEO and Chairman of Nambia Rare Earths and Burton is its President. From 2008 to 2010, Burton and his team completed geotechnical surveys and mapping of about 3,700 samples at the project.
    Early Assessment of Namibia Rare Earths’ First Phase of Drilling
    Namibia Rare Earths has rapidly advanced beyond its geotechnical surveys and sampling programs to discoveries confirmed through the initial drill program in just the first phase of drilling. The drilling confirmed discoveries in what may be the strongest heavy rare earth results of new projects in the industry.  The drill results are notably discrete (well defined), within reasonably sized intercepts (important to build tonnes), near surface, which are “exceptionally” (and consistently) enriched in heavy rare earth elements. Namibia Rare Earths anticipates completing the first phase of drilling by September and commencing the 15,000 meter second phase upon assessment of first phase results, with potential for completing a resource estimate.
    Aug 08 1:07 AM | Link | Comment!
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