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11/18/09

Sandspring Resources (SSP.v): Touching nerves


I've had all types of feedback from this post on Sandspring Resources (SSP-H.v) (SSP.v) dated November 10th that went behind the slick show being put forward to the investment community and looked at some of the issues faced by the company and its property. That feedback includes this comment left under the post by a person who claims to be John Adams, soon-to-be lead director at the company.

Since you seem intent on trashing this property, let me give you some more information so you can do a complete job. After the qualifying transaction is completed, the lead director and majority owner will be John R Adams. Mr. Adams has over 30 years experience in the mining business. He owned developed and operated the largest coal mine in Colorado, Energy Fuels Corp)(4 million tons a year) His family created and he managed the largest uranium producer in the US throughout the 1980's and early 90's(Energy Fuels Nuclear Inc.5 million lbs a year) He has owned and developed the Guyana property for over ten years and has invested $15 million of his own money, building a 140 mile road and drilling out over 3 million ounces of gold equivalent. Sounds like a real "pump and dump kind of guy to me!! Thanks for the great press.
John R Adams

Although it's not possible to confirm if Adam is the actual author of the comment, (update: confirmed) the words do have an air of knowing what they're talking about (and it's signed Adams, of course) so let's assume it was Adams until proven otherwise. Therefore while this humble corner of cyberspace has your attention, Mr. Adams, I have a comment and a question:
  • Comment: I actually said SSP might be a buy when it opens for trading. It's just that we don't treat people here like dentists and give them a lot more information (that you seem not to have refuted) so they can make up their own minds.
  • Question: If, as you claim, this isn't a pump and dump operation, why have you chosen Thom Calandra to promote it to the investment community? I mean, this is a person who was banned by the SEC from the stock market because of illegal trading activities that included his fave M.O. the classic pump and dump! He'd buy stock quietly, pump it to his retail sheep and then sell while they were buying. What is he doing pumping your stock to the investment community, just five years after paying a $540,000 fine for this kind of unethical and illegal activity? Put basically, you hire a proven pump'n'dumper and then claim it's not a pump'n'dump. Why?


But like I say, there's been plenty of feedback on that piece, not just Adams' dos centavitos. For example, here is a mail extract from a reader who is also a very experienced industry professional (very slightly edited to protect identities)
Had heard of it ........ about 6 months ago ......... Indeed 3 M ozs of 0.93 g/t, in the middle of the jungle with no access and infrastructure does NOT work. Period, end of story. Needs to own to 7 or 8 and even then, you’d better have cheap power/fuel or its game over.

I can't reveal who the author of that is, but can say he's an industry executive and a lifelong (and very qualified) miner himself. The kind of person one takes seriously.....not like the paid shill Thom Calandra. DYODD, dude.