Dorato Resources (DRI.v) and its "harmonious relationships"

On April 20th, the country manager for Dorato Resources (DRI.v) in Peru (via its wholly owned subsidiary Minera Afrodita), Jorge Bedoya, piped up in the Peruvian press about how things were going at their project up in the Cenepa region, North of the country. Here's a translated extract from this report in La Republica:

"...he assured that the relationship between the company and the indigenous communities in the Cenepa district is harmonious, and that Afrodita is in exploration stage and hoped to discover important gold mineralizaion in the zone."

Hmmm...all sounds good until you find out just how harmonious things really are, and the way to find that out is to hear the locals' side to the story. La Republica this week printed this right to reply written by leader of the local Awajún people and President of the Organization for the Development of Cenepa Frontier Communities (ODECOFROC) Zebelio Kayap (and translated by your humble scribe, moneyline in red):

Dear Sir,


In the April 20th edition, you published declarations by Jorge Bedoya Torrico, general manager of Minera Afrodita, that once again alleged that the company maintains a harmonious relationship with the indigenous communities of the Cenepa, a declaration that I see fit to refute once again by referencing the Declaration of the Annual General Congress of the Cenepa Communities dated November 26 2010 in which the entire population denounced unauthorized entry [by the company] and continued violation of our consulting right by Minera Afrodita on its concessions. The community has reported the incidents to Odeofroc, expressing that it is not in agreement with mining activity on its territory, that it will no authorize exploration work and that the company respects the Convenant 169 of the OIT (ottonote; the internationally recognized agreement that gives communities consultation rights before mining activity begins and to which Peru is a signed member). The present conflict between the Cenepa communities and Minera Afrodita is continually reported, month after month, by the Defender of the People State Ombudsman. A harmonious relationship cannot exist while Minera Afrodita continues to violate the respective national and international laws.


Zebelio Kayap Jempekit
Document number 40471527

And thus the letter to the editor ends, but then La Republica's editorial adds its own line or two below:

The abuse of this mining company against native communties of the Alto Cenepa region has been documented by various sources.

Harmonious?

Oh and the other relationship Dorato (DRI.v) is having harmony problems with is that of the company and its shareholders. We present Exhibit A, the DRI.v 2011 price chart:

And just to think that Eric Sprott and Pierre Lassonde got suckered by these snake oil salesmen too. DYODD, dude.

A special request from Germany

Apparently and suddenly there are a whole bunch of scam pushing whores in Germany getting their pips squeaked by more honest (and far more naive) people who are apparently and suddenly wondering where all their money invested in the "sure thing" called Dorato Resources (DRI.v) has gone.

It's gone because you've been scammed, herrs and frauleins (sorry, German isn't my strong point). But look on the bright side, at least you've been keeping good company. After all Eric Sprott and "the legendary" Pierre Lassonde got fooled by the Carlos Ballon show, too.

Yeah, really. How do you say "DYODD, dude" in German anyhow?

Dorato Resources (DRI.v) sure suckered Eric Sprott

Did they get you, too?

So according to your humble scribe's rough scratchings, the 881,850 shares of Dorato Resources (DRI.v) that Eric Sprott's Asset Management company had tucked away at the beginning of 2011 were at that time worth $1.36m . Now they're worth $0.502m. Ouch.

It's a good job Eric spreads his holdings around, isn't it? Because owning up to a great fat loss in a scamjob like DRI in the midst of one of the biggest gold bull runs ever would sure be embarrassing otherwise, especially when insiders were busy selling their holdings at the very same time (and prices) that Eric thought such a bargain. Talk about snatching defeat from the jaws of victory, Ericdude, if I were you I'd have a word with the analyst that talked you into buying so much of DRI without having the first clue about the regional political risk that was being taken on board.

Dorato Resources (DRI.v): Strange how the President and CEO of the company was so keen on selling his own shares to the market recently, isn't it?

Hey Keith, dump 'em at $1.50 and watch the stock dive afterwards as reality sets in why don't you?

Dorato Resources Inc. (DRI)						As of March 2nd, 2011
Filing Date	Transaction Date	Insider Name	Ownership Type	Securities	Nature of transaction	# or value acquired or disposed of	Unit Price

Feb 09/11	Jan 06/11	Henderson, Keith J.	Direct Ownership	Common Shares	10 - Disposition in the public market	-3,000	$1.490
Feb 09/11	Jan 05/11	Henderson, Keith J.	Direct Ownership	Common Shares	10 - Disposition in the public market	-10,000	$1.430
Feb 09/11	Jan 05/11	Henderson, Keith J.	Direct Ownership	Common Shares	10 - Disposition in the public market	-13,000	$1.500
Feb 09/11	Dec 29/10	Henderson, Keith J.	Direct Ownership	Common Shares	10 - Disposition in the public market	-18,200	$1.500
Feb 09/11	Dec 30/10	Henderson, Keith J.	Direct Ownership	Common Shares	10 - Disposition in the public market	-24,300	$1.500
Feb 09/11	Dec 30/10	Henderson, Keith J.	Direct Ownership	Common Shares	10 - Disposition in the public market	-6,500	$1.520
Feb 09/11	Dec 31/10	Henderson, Keith J.	Direct Ownership	Common Shares	10 - Disposition in the public market	-1,000	$1.540

So to recap that's 75,000 shares sold around the $1.50 level that brought in gross proceeds of $112,500. Not only that but all of the sales were late filed too so as not to tip off the poor retail saps he was dumping on (many of whom live in Germany and have been raped once agian by the scumbag pushers like  boersenbrieflemming). So let's see how DRI shares have done since the President and CEO of DRI Keith Henderson dumped his stock and didn't tell the market?

 

Hmmm....44.6% down since he started selling his own shares.....I've seen better, gotta be said.

Hey. I wonder if Henderson and his cohorts have any more late file sales to declare to the market still? Certainly part of the company's M.O. (and they wonder why i insist on telling people to avoid Cardero Group companies like the plague?). Hey again!, Perhaps Mr. Henderson had advanced warning about the documentary that's getting aired on CBC tonight? Inquiring minds.....

Canadian readers, make a date in your TeeVee diary...

...for Thursday March 3rd and watch this documentary as part of the famed 'The Nature of Things" slot. Then short Dorato Resources (DRI.v). In fact, it may be better for you to short DRI.v first and watch it second. Thanks to reader 'FB' for the headsup, here's the blurb and here's the link to read more:

The Real Avatar

Thursday March 3 at 8 pm on CBC-TV, repeating Thursday March 10 at 10 pm ET/PT on CBC News Network

Peru is in the midst of an unprecedented resource “rush” – 72% of the jungle has been zoned for oil development alone. And according to recent studies, in just 10 years nearly half the Peruvian rainforest–one of the most biologically diverse areas on Earth–may be past the point of no return if current rates of deforestation continue. In The Real Avatar, David Suzuki sets off for the Amazon to investigate the effect this rush is having on the native peoples who call this land their home.

Under the shadow of the Cordillera del Condor mountains, and near where the mighty Amazon river begins, live the Awajun and Wampis peoples, a proud, warrior nation, never conquered by the Incas or the Spanish. Today, they feel they are being invaded again: Peruvian and Canadian mining companies aim to set up a gold mine on land these natives say is their traditional territory. In fact, the Awajun had an agreement for the establishment of a National Park along the Cordillera that would protect their land. But the Awajun found their agreement broken, quite literally in two, when Peru's President gave half the area over to mining interests. Studies indicate that mining here would devastate the area's water system – water that flows to the downstream Awajun...

CONTINUES HERE

Christoph Berndt, criminal German scam pusher working for The Cardero Group, would like a comment on the move in Dorato Resources (DRI.v)

Today I get a mail from the criminal scam pusher Christoph Berndt, aka boersenbrieflemming, who works for the scum-ridden promotion system in Germany under the auspices of Hank Van Alphen's Cardero Group of companies. Berndt writes:

Title: DRI

If you have cojones you should comment it.

Obviously he has a hard on about the move in Dorato (DRI.v) these last two days. 

So certainly you scumbag asshole, anything to shine the light on the illegal affairs run by Frank Gagel and you, in cahoots with the board of directors at Cardero, the English language scum pusher "Value Pro" in Arizona and all the others in the spider's web of corporate deceit that give even the pushers in the Frankfurt bourse a bad name. Here's a comment:

Dorato Resources, in the midst of an all-time historic 

bull run for gold, is still 14.29% down in 2010.

Happy now? Or perhaps, Christoph, it's about time your controllers told you to...

A special song for Christoph Berndt

Arch bullshit pumper in the German markets and perennial pain in the butt, the Hamburg dwelling Christoph Berndt (feel free to email him at this address; cb AT vicus-gmbh.de) who peddles his criminal filth under the name "boersenbrieflemming" on several German chatrooms and bullboards, decided to keep sending me his ridiculous hatemail regarding his underwater position in Dorato Resources (DRI.v) last week (that he's paid cash to promote, btw). His silliness coincided with the release of this NR that saw the stock rise as far as 80c....in fact, our delinquent scumball Christoph timed his mail with that peak. However, bad news for him in this chart:

Yep, this no-hope stock he's desperately trying to pump to Teutonic greenhorns is back to where it was pre-NR. So Chrissy, this one's for you. Enjoy (and make sure you join in on the chorus...loud voice):

The minor details that Dorato Resources (DRI.v) forgets to tell the market

Detail one: Dorato Resources (DRI.v) has the United Nations on its back now. CERD is a committee of the UN and the acronym stands for "Committee on the Elimination of Racial Discrimination". Its job is to combat state-level racism, so it's only natural that eventually they'd be alerted to the defence the Awajun-Wampi peoples of the Amazon basin have been putting up against the Twobreakfasts government and the parasites that would "develop" the region (word used as loosely as possible) for the benefit of the almighty janquidolar.

Detail two: DRI likes to pretend it has shiny happy relations with locals in the Cenepa region, but sadly for the liars at Dorato, the local know how to use the interwebnetpipes too. Here's the latest post on the blog run by the local people themselves. This way you get their true voice, unfiltered and unspun:

"Despite the injustified triumphalist announcements made by Dorato Resources and Mining Company Afrodita about their mining activities within indigenous territory, CERD express its deep concerns about the authorization of numerous mining concessions without the prior consent and informed consent of indigenous people and about the fact that the conflict between indigenous communities and the Government has escalated at an alarming rate. CERD also requests information about several indigenous Awajun claims."

But hey...why believe the people that actually live there? Why not believe a bunch of junior gold mining executives instead? When has a gold miner ever been caught lying?

Dorato Resources (DRI.v) cares for its employees so much....

...that it will happy ream its retail shareholders to please them.

Y'know, there are handouts to management and there are handouts to management, but ONE POINT NINE MILLION OPTIONS worth $1.6m when you're on a stock with a market cap of $58.5m? They've just awarded themselves 2.75% of the company, FerLaffinOutLoud!

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 27, 2010) - Dorato Resources Inc. ("Dorato" or the "Company") (TSX VENTURE:DRI - News; OTCQX:DRIFF)(PINK SHEETS:DRIFF - News; FRANKFURT:DO5 - News) announces that, Pursuant to its 2009 Incentive Stock Option Plan, Dorato has granted incentive stock options to certain directors, officers, employees and consultants allowing them to purchase up to an aggregate of 1,900,000 common shares in the capital stock of the Company. The options are exercisable at a price of CAD 0.85 for a period of two years ending May 27, 2012.

It wouldn't be so bad if options were the only way Dorato (DRI.v) brass handed themselves the love, but the company racked up $1.1m in consultancy fees in the first nine months of the year and you can bet large sums versus rosquillas that names first in the queue when those contracts got handed out also coincide with directors and Cardero Group pals (and we wait on tenterhooks for the YE and its contents). But on the other hand, the company can always point to this year's sparkling share price performance.....

........as a way of justifying this wildly excessive options handout, can't it Owly?

Retail shareholders: The crop that never fails.

Dorato Resources (DRI.v): What locals really think of the company

Here's a link to a new English language blog set up by the people who live around the mining projects of Dorato Resources (DRI.v) in the Cenepa region of far northern Peru, part of the Cordillera del Cóndor mountain range. In the linked blog you'll find out what locals really think about the Dorato project.

Before you go there (and you should), if you're expecting to click to a badly drawn and emotion-ridden argument then think again. Theirs is not some fly-by-night protest blog that rails against society without any studies or research to back it up. I've looked through the case put forward by the Awajún-Wampi peoples in this blog this morning and it's backed up by official documents, well thought out arguments and (although the grammar goes slightly offkey here and there) a good and level-headed voice in the English language. It documents the way in which their rights have been ignored, the lies told by Dorato and the deceptions of the Peruvian government as it pushes an growth at all costs agenda.

So if you really want to know why DRI.v isn't welcome in its corner of Peru and how the government of Peru is riding roughshod over people's rights in order to push through its drill-baby-drill policy in one of the most sensitive ecosystems in the world, go visit the site for yourself.

Here are a couple of excerpts:

"Our war is a defensive one. Peruvian Company Aphrodite (sic) and its owner Dorato Resources Inc., the Canadian corporation which desires to exploit our natural resources without respecting our rights and our lives, says to their shareholders and to the public that Dorato “has excellent relationships with the local community”. Not only good but “excellent”... But from our place, we the Awajun and Wampis peoples have a totally different view."


".....the Peruvian Government decided to explicitly and systematically favour extractive activities to the detriment of both the conservation of natural resources, as well as the rights to life and health of the indigenous populations that inhabit these areas, without providing any technical or legal arguments justifying its change in position regarding the compatibility of the mining activities with these ecologically vulnerable areas.


"The Organization for the Development of the Border Communities of El Cenepa (ODECOFROC) has submitted on August 4, 2009 -and recently has updated on February 17, 2010- a request for “Urgent Action” to the United Nations Committee on the Elimination of Racial Discrimination (CERD), demanding that the Peruvian Government provide the international community with an explanation regarding its racist and discriminatory conduct to the detriment of the Awajún and Wampís peoples living in the border District of El Cenepa, near the Condor Mountain Range.

"The indigenous peoples have lodged this request with CERD due to the existence of an ongoing official policy to partake in socio-economic exclusion and discrimination, which is manifested through a variety of aspects and in a particular very conflictive context"

"The Cordillera del Cóndor forms part of the traditional land of the Awajún and Wampís peoples, as recognized by the Peruvian government on repeated occasions, including the process in the framework of which the proposal to create the Ichigkat Muja National Park was defined. Nevertheless, the State proceeded to reduce its area in order to accommodate the mining sector, introducing an intolerable risk on the land of the Awajún and Wampís peoples in a clandestine manner."

Henk's whores love PDAC

Oh look...Dorato Resources (DRI.v) has faded badly after PDAC....wowsers, that one surprises....

1) Chances of any DRI.v properties becoming a mine: 0%
2) Chances of DRI.v IR dep't contradicting this fact: 100%
3) Chances of IKN receiving further hatemail from Germany today: See point 2)
4) Chances of IKN not laughing at the hatemailers: See point 1)

UPDATE: For those of you who wonder whether this blog gets read by the scam artists, this is what happened just after publishing:

The pumpers pop DRI.to up by 6.5% on one single trade of 7,400 shares. I giggled.

Dorato Resources (DRI.v): A total coincidence, of course

Yesterday this humble corner of cyberspace made mention of a horrendously bad pump piece in this week's edition of Northern Miner about Dorato Resources (DRI.v). Totally biased, unable to address the long-standing social issues that have now come to a head and only getting opinion from one side of the story, it was a shameful piece of hackery (I'd reprint here but NM get all bolshy and nasty about their copyright protection). It also came at the same time as the rise in DRI.v stock, which was full of rather dubious market action with a whole bootload of smallish "seller anon" "buyer anon" trades, all with the same volumes and coming within moments of each other all the way from 65 to 75c.....which then prompty disappeared. Y'know...nothing you can put your finger on in a legal sense but the typical HenksWhores kind of action.

So it was amazing, incredible, spooky and coincidental to discover the background of the IR guy over at Dorato. Here's the payline:

Steve Stakiw Position: Manager - Corporate Communications Steve is a geologist and has been involved in many facets of the mining and mineral exploration industry, both in Canada and internationally, for more than 20 years. In addition to several years in the field, he has research and finance market experience and was involved in the formation of an industry-leading mining information service. Steve's diverse range of experience also includes serving as the western editor of The Northern Miner from 2006 to 2008.

So, the rescinding of licences is ignored by the world of Canadian markets because the brokerage analysts and investment advisors were let in on the sweetheart 60c offering. Then the only coverage of the DRI saga in the main mining press up there is an abysmal pump piece in Northern Miner. And it turns out the IR dude at DRI.v is a NM old boy.

Are these facts somehow related? Inquiring minds etc...........

The tide is out

The guy Buffett once said that 'only when the tide goes out do you discover who's been swimming naked', which may not be a perfect fit on what follows here but it sure does come to mind. We're going to return to the subject of Dorato Resources (DRI.v) but bear with me one more time because although ostensibly about DRI.v it's much more about the shady underside of Canadian Capital Markets and the people with voices of influence therein.

The recent travails of Dorato (DRI.v) with the Peru government and the locals around its Cenepa-based exploration project have shown that the company has been spouting utter bullshit about its supposed good relations with said people. Now that its operations have been indefinitely suspended by the highest authorities in the land (i.e. Cabinet Ministerial level) and with flat zip zilch zero chance of Peru changing its mind on this (reasons previously explained) you might have expected analysts and brokerages to advise clients to either avoid DRI.v like a nuclear fallout zone or if they were bought in to sell before too much damage is done.

Strangely, the news out of Peru has been largely met by a roaring silence from expert analysts (loosely used term here). Nary a word from the people at the can of corn, for example, who spent the latter part of 2009 pumping up the stock, using phrases like "the next Aurelian" in its Morning Coffee publication on several occasions, making wild rah-rah noises when DRI got its permits for a very limited drilling campaign and then (hey wow coincidence!) heading up the syndicate that ran two placements for DRI.v at $1.05 and raising nearly $15m for the company just days before the ceiling came crashing in.

Why should it be that suddenly Dorato Resources is not mentioned by the Canadian brokerage community? Why oh why oh why?

Would the following have something to do with it? Back in late 2007/early 2008 (you can see where on that chart above...before it all kicks off), Dorato Resources ran its $0.60 seed capital financing. A total of 17m shares were placed by the company, and amongst the people that bought in, here are a few of the names (and their jobs in 2008 or perhaps a little earlier) and the amount of DRI stock they bought:

• Ali Pejman, MD Investment Banking, Canaccord Capital, 225,000 shares (125,000 shares directly, 100,000 via his wife Kirsten)

• Wendell Zerb, Senior Metals and Mining Analyst, Canaccord Capital, 40,000 shares

• Graham Currie, (via an investment in his wife's name, Cheryl), Senior VP Investment Banking, Canaccord Capital, 75,000 shares

• Neville Dastoor, Mining Analyst at Canaccord Capital until 2006, 10,000 shares

• Matthew Gaasenbeek, Head of Capital Markets N.Am, Canaccord Capital, 50,000 shares

• Graham Saunders, Head of Canadian Institutional Sales, Canaccord Capital, 35,000 shares

My stars, a lot of names attached to the can of corn, no? Whatever can it all mean????? But wait, there's more! The role call isn't confined to just that one house:

• Gary Bogdanovich, Investment Advisor, Haywood Securities, 285,000 shares

• Lorinda Hoyem, Investment Advisor, Blackmont Capital, 50,000 shares

• Dino Minicucci and Cal Everett, respectively Investment Advisor and Institutional Sales, PI Fincorp, 365,000 shares (via holding company 0811321 BC Ltd)

• Linda Yule, Senior Investment Advisor, GMP Private Client, 100,000 shares

Forgive me if I missed a couple of names along the way, the full list of people taken in by DRI was long at 160 people. I also have no information on whether these people have held through on their purchases until today or whether they've either partly or fully disposed. But the point is that all these investment advisors, brokerage bankers, insto sales people etc etc are or were long DRI, so how on earth are they supposed to give people unbiased and straight advice on this scam if they have vested interests? For example, the Pejman family's holding in DRI.v (assuming ceteris paribus) was worth $303,750 less than two months ago and now it's down to just $146,250 thanks to the recent outbreak of reality as concerns the company's deeply problematic social issues (that haven't just sprang suddenly from nowhere, as the IKN series of posts make crystal clear).

This DRI.v episode is just part of the underbelly of Canadian capital markets, one small glimpse into what goes on behind the scenes. A company like DRI soft-soaps a whole sector of people with influential voices and gets them on their vested interest side. Then they can't say anything out loud and in public when the whole shebang falls apart. Dorato Resources (DRI.v) is a company that's now dead in the water with no chance whatsoever of ever building a mine or selling its assets to a higher bidder. It's done, finished, kaput, be in no doubt. But the people listed above and all their friends and colleagues aren't going to tell you that....for more than one obvious reason.

errrm.....toldyaso?

Check out this excerpt of the contents of last week's IKN Weekly on Dorato Resources (DRI.v) and the Cenepa region of Peru again, willyaz?

"....unofficial word from Lima corridors of power is that the fairly new and so-far somewhat toothless environment ministry, led up by pragmatic ecologist Antonio Brack, is keen on making an example of this area in exchange for allowing mining development enviro green lights in other areas of the country. The concept is that Brack can point to the Cordillera del Condor area as a place (rather minor in the great mining scheme of things) where the government has taken action and protected jungle areas. Meanwhile the mining and energy ministry gets its way in other, larger project areas such as the oil projects of the Amazon basin. The trade-off makes sense, but if it comes to pass it would be a killer for DRI. How sad."

Now have a look at what Environment Minister Antonio Brack Egg (great name) said in a radio interview on Friday (translated):

Environment Minister Antonio Brack called the decision by the Ministry of Energy and Mines to suspend the activities of Minera Afrodita (subsidiary of Dorato Resources (DRI.v)) in the province of Condorcanqui (Amazonas) "an answer to the request of the population of the Cordillera del Cóndor zone".

In conversation in CNE radio's program, 'Direct Dialogue', Brack Egg said that he had directly participated in the decision as it was a demand from the native communities of La Cenepa.

Any further questions? And no Eric, I don't want to work for you so don't ask. Just hire somebody up there that can speak Spanish one time, yeah? Or maybe subscribe to the Weekly, Eric. Only 25 a month.......cheap!

Dorato (DRI.v): Who fell for the story?

Sprott Asset Management, that's who.

Not only did Sprott own six million, four hundred and twenty-four thousand shares of Dorato Resources (DRI.v) as at December 31st 2009 but they also added 257,850 to their pile as part of the very recent round of financing. So Sprott now owns 9.5% of a company whose share price will now wither and fade down to its residual value (roughly 30c) because it won't be able to do anything significant at its only assets ever again.

Eric, if your suits fell for that "Ooooh, no problems with the locals" soft soap peddled by the company which has now been proven 100% wrong, you really need oversee your buying staff a little better than this......

Dorato Resources (DRI.v): Who knew?

Well, not to put too fine a point on it, subscribers knew last Sunday. As well as the persistent warnings put up on the blog about Dorato (DRI.v) and the big issues it faces in the Cenepa region (and a section in a Weekly a while ago), on Sunday Feb 14th subbers read the following:

Dorato Resources (DRI.v): Don’t go there

On the blog on Thursday (10), I made mention of the latest barrier being set up against the mining activities in the far North of Peru that may affect Dorato Resources (DRI.v) and others in the ‘Cordillera del Condor’ region which backs on to the equivalent region of Ecuador, home to Fruta del Norte amongst others. Word is that due to persistent protests from locals the government is planning to rescind a declaration made in 2007 that took areas out of the National Park zone there and offered up concessions to mining companies (11).

That’s the general story, but unofficial word from Lima corridors of power is that the fairly new and so-far somewhat toothless environment ministry, led up by pragmatic ecologist Antonio Brack, is keen on making an example of this area in exchange for allowing mining development enviro green lights in other areas of the country. The concept is that Brack can point to the Cordillera del Condor area as a place (rather minor in the great mining scheme of things) where the government has taken action and protected jungle areas. Meanwhile the mining and energy ministry gets its way in other, larger project areas such as the oil projects of the Amazon basin. The trade-off makes sense, but if it comes to pass it would be a killer for DRI. How sad.

Yes, you too would have had the chance to get out at between 85c and 90c on Tuesday and as high as 88c yesterday if you'd known what was in IKN41. Just sayin'. And by the way, if you think New Dimension Resources (NDR.v) isn't affected by all this, you need to stop smokin' those fatboys. The chances of any mine getting built in the Cenepa region by any company at any point in....oooh, let's say the next 30 years or so....is zero zip nada zilch. IAMGold worked this out last year and definitively retired its exploration activities from the region. That's the difference between a serious mining company and a bullshit junior, y'see.

Mo' Dorato (DRI.v): Peru indefinitely suspends DRI's concessions

Goodbye, Dorato Resources (DRI.v). Now about to sink without trace along with the $15m of private placement financing it closed just three weeks before being told to close down operations at its only asset by a 'miner friendly' government. Didn't Gordy Neal tell you about the spot of bother they'd been having with the locals? Ooooh dear! Class action lawsuits, anyone?

Only about an hour after IKN's last post went out, Reuters today reports that the government of Peru has indefinitely suspended the exploration rights of Minera Afrodita (subsidiary of Dorato Resources) (DRI.v) in the Cenepa region of Peru. Some choice quotes from ministerial bigwigs too, with Prime Minister and cabinet chief Javier Velasquez saying (translated):

"The suspension is because the Afrodita mining company has not been able to accredit ownership of the terrain where it is exploring and has not been able to reach agreement with the indigenous communities and with the State."

Hey, you know those annoying dumbass wiseguys that go around saying "I told you so"? Well I'm one of them. Dorato Resources is one of the reasons why I'd never invest in Franco Nevada, but that's another story for another day.

Here's how Peru's La Republica is running the news.

Dorato Resources (DRI.v): Community relations seem somewhat lacking, perhaps?

Troubles are mounting for Dorato Resources (DRI.v) as the company's mushroom politic tactics with local comunities in the Cenepa region of northern Peru are now backfiring. Word is that locals are going to make a formal protest march against the prescence of DRI in the area in March (i.e. next month), which is already being likened to the protest by the same Awajún-Wampi protests in Bagua Peru that ended up last year in full scale conflict and dozens of deaths of both police officers and protestors.

This Cenepa area is remote as remote can be. If you don't have the backing of the locals in an isolated area of Amazon basin jungle then you are simply asking for trouble by going in and exploring. DRI.v does not have support of locals, as simple as that, and all the edicts passed down from an office in Lima aren't going to help the company geologists when they're taken hostage yet again (or perhaps even worse next time...these people are evermore mad at being ignored and they're a warrior race, too).

Here's a translated extract from this article in Peru's La Republica this week that gives more background.

Zebelio Kayap, President of the Organization for the Development of Frontier Communities of Cenepa, said two weeks ago that the Awajún-Wampi indigenous communities are tired of not receiving any sort of answer from the officials sent by the Ministry of Energy and Mines.

"We have asked them why they gave authorization for the entry of the Afrodita mining company (subsidiary of Dorato Resources) and why they gave out concessions in the Cordillera del Cóndor region when we had already signed an agreement with Inrena (Peru's official national parks authority) to create the 152 hectare Ichigkat Muja park. This was then reduced without respecting the signed document", said the leader, after noting that the Cordillera del Cóndor region is a valuable territory for the survival of indigenous natives and is also sacred as it is the home of the venerated Cerro Kumpanam mountain.

The natives of Cenepa reaffirmed their position: demand that the State complies with the act of creation of the national park area agreed upon and then delegates its vigilance and administration to locals. They also ask for the Cenepa mining concessions to be revoked due to non-compliance of consultancy rights established by the convenio OIT 169 as well as the withdrawal of the Afrodita and Dorato mining companies.

The indigenous natives of Cenepa do not recognize Afrodita's environmental inpact study, not only because the public consultancy audienced were held outside of the Cenepa region but also becuase they have decided to reject all extractive activities in the frontier zone.

Dorato Resources (DRI.v): Wondering why it sold off today?

I'm not. Cos I speak Spanish. Let's check on how Dorato (DRI.v) did against GLD (the gold etf)

Oh dear...all on a sudden surge of volume,too...that's what comes of getting a national park stuck over your mining concession, I suppose. But didn't they mention that when they were running the recent $15m equity placements that closed around two weeks ago? Oh dear, how lapse of them. Tut tut. Never mind buyers....you'll be able to dump the stock in just 3 1/2 months...not long to wait....

Fool + Money = Parted.

Dorato Resources (DRI.v): Bad news for the bullshit pumpers at the can of corn....

...along with the company and Henk's whores in Frankfurt, too. I had to laugh this morning when I saw Dorato (DRI.v) being pumped in Canaccord's 'Morning Coffee' publication for the second time in the last two weeks. Those guys are utterly shameless.

This report tells the story of how locals in the Cenepa region of North Peru (where DRI.v is pretending to explore, along with fellow bullshitter company NDR.v amongst others) have taken five members of IAMGold staff hostage in the last week, along with three others from a company called Sierra Dorada (that's trying the same alluvial scam on the Marañon river as CMIN.ob). The eight mining staff members are being held by locals because they don't want any miners in their hood. Simple as that.

But the real bad news for the Canadian pump machine and the parasites that latch on is that IAMGold is pulling out of the area next year. apparently not for the "warm welcome" they get from locals, either (though it can hardly help). Nah, the reason given by Louis Gariepy, manager of IAMGold Peru, is that (translated)

"we are going to abandon the concession next year when the next license renewal comes around. We now realize that it (exploration in the zone) is very costly. This is the reason why it’s very probable that we will not return.”

So let's see.......Cenepa is very hostile and anti-mining, is abandoned as not cost effective by a serious mining company.....but pumped by a bunch of bullshitters in cahoots with the sleaziest brokerage in Canada. What say you, owl?

UPDATE: Oh look, somebody with 50,000 shares reads this blog.
Say it, owly: