IKN

Every why hath a wherefore

Tracy Weslosky, how does the truth suit you?

Last week, we documented the blatant censorship suffered by Mickey Fulp at the hands of Rare Metals Blog and, for our pains, were threatened with legal action by site owner Tracy ‘Goldilocks’ Weslosky (it’s now nine days and counting with no sign of the blowhard wannabe bully making any move on her threats, by the way). The shenanigans was set off by an article written by Fulp, published on Rare Metals Blog and then taken down because it had the temerity to criticize some of the site sponsors that keep Goldilocks in spending cash.
So how are things panning out? Well, one of the companies that came in for Fulp’s crits was Ucore Rare Metals (UCU.v) and thanks to IKN’s saving of Fulp’s note (you can see the whole thing here) we can read what he said about the company:

I visited Ucore Rare Metals’ (UCU.V) Bokan Mountain project in mid-August along with fellow Rare Metal blog editors Jack Lifton and Tracy Weslosky.
The Dotson Ridge deposit is small with low TREO (total rare earth oxide) grade but heavily skewed toward the HREOs (heavy rare earth oxides). The individual mineralized zones are very narrow (generally less than a mineable width of 1.5 meters) and are discontinuous along strike. The deposit will require selective mining and/or physical or mechanical separation of pay zones from wall rock using very high cost mining methods.
The company apparently is reluctant to commence the next logical step: Permitting, test mining, and bulk sampling during the 2011 field season. I must conclude the sole corporate exit strategy is to sell the project but have doubts that any larger player in the REE sector is seriously interested at this juncture. With current knowledge, the Bokan Mountain project is not viable. I agree with Jack that it will require private or government subsidies if a significant deposit can be delineated and if it is ever mined.
As of June 30, Ucore Rare Metals had 105.4 million shares outstanding, 134.0 million shares fully diluted, 24.5 million warrants at an average price of 26 cents, market cap of about $65 million, and $4.4 million in cash and securities. The company must go to the market for financing later this year or in early 2011. Ucore Rare Metals’ share structure is highly diluted given the stage of its flagship project and the potential for a significant increase in its share price is therefore limited.

And sure enough, when UCU.v released the results of its latest drilling campaign on Wednesday 20th (i.e. yesterday) they went a long way in justifying Fulp’s analysis. The mineralized zones were indeed narrow and everything points to the accuracy of Fulp’s call…including the share price action which is documented on this 10 day chart:
When the NR hit, so did very strong selling pressure due to the disappointing nature of the rock as reported by UCU.v….which matched Fulp’s analysis to a tee, recall. It traded under 50c in the morning, rallied to close at 55 but then today we’ve seen more selling pressure and the stock closed at 51c, its lowest close since early September. 
Now it’s also well worth noticing that on the 10 day chart above we also have the action for Tuesday October 12th. On that day UCU.v was trading at $0.64 and $0.65 all day. Or in other words, if Goldilocks cared more about the people who read her blog, more about truthseeking and much less about appeasing the corporate clients that pay her money, readers of Rare Metals Blog would have had a much better idea about the dangers involved with Ucore (UCU.v) and could have got out at the handy price of 65c. But no, she’s far too interested in feathering her own nest for that and prefers to make bagholders out of her readers. UCU.v is now 21.5% down, looks set to go lower and with the pumped-out readers of her blog firmly on board. Meanwhile, the only problem Mickey Fulp brings to the table is that he’s too damned honest to hang with the slimy side of the market.
Money talks and bullshit walks. Hey Goldilocks, guess which side of the equation you’re sitting on tonight?
PS: To commenter ‘thetick’: Learned anything yet?

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