The further I investigate though, the more concerned I become. These are very narrow veins and high grade, so there will be a nuggest effect. One is of course reminded of Bendigo Goldfields. Grade control (predictability) issues, though it does win on easier accessibility. The very high gold cut-off grade of 400g/t does not give confidence. Really until this company gets down into the high grade ore and does bulk sampling, there is no way of predicting the bulk grade of the ore. The company has just $6.1 million in the bank, so perhaps they are looking at an issue because their options expiring in June are well out of the money. For this reason I would expect the shares to fall back to 40c support. Perhaps 50c will be the 'discounted' issue price. This stock is certainly one I would watch, though I'd want more certainly over grades.
Andrew Sheldon www.sheldonthinks.com