I love grassroots exploration because its the opportunity to see value before everyone else can see it. Several months ago I bought GOA at 9c in anticipation of attractive drilling results from its Anomaly A & B drilling program in the Carpentaria region of North Qld. This region of course hosts some VERY significant resources with a value of $100+billion - so its a good place to find elephant-size deposits. There are the Mt Isa Cu-Ag-Zn deposits, the Cloncurry Cu-Au deposits and the Cannington Zn-Ag deposit.
GOA is targeting a geophysical anomaly and is discovering zones of multiple veinlets running 2-4% zinc and 60-140g/t silver. For preliminary drilling these results strike me as highly significant. Ok the negative is that the minralised zones are being struck at 300-400m depth. The upside might be a Mt Isa size underground deposit. So when you consider this company is capitalised at just $9.3 million, its quite possible this company has huge upside. Its still early days but the tenure of the grades and widespread occurrence of mineralisation I think point to a future mine. The question is whether there is something more significant at 800m depth. Ultimately we are not going to know for another 6months - by which time they should be looking at drilling some much deeper drill holes. In the interim they will be drilling shallow holes to determine the structural controls. But with gold & silver about to go very high over the next few years, the market is going to find very few prospective silver stocks. There is just Macmin (MMN) offering significant silver exposure, so I see this as an opportunity to get in early. Nevertheless I've never been one to buy and hold. So try to avoid those capital raisings. That is hard as capital raisings tend to be paired with drilling results.
- Andrew Sheldon www.sheldonthinks.com
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