Based on the current chart, it would normally be a good idea for gold investors to sell Red 5 Ltd (RED.ASX), which is currently at resistance, and to enter A1 Minerals (AAM.ASX), which is cashed up after just absorbing an issue. I caution however because the company is testing a large geological intrusive which is lightly mineralised. It does not promise the grades of Anglo American's Bo????gan project up the road, however it could be of significant size. I wonder if this is the intrusive they drilled about 5 years ago?
Anyway, AAM would not surprise me if they offered some positive drilling results to the market, as well. Also there is likely to be some movement in Gippsland (ASX.GIP). It has been finding some buyer support over the last week. There is still some seller at 4.2c if anyone wants 100K odd parcel. I have historically done very well on this stock in the past, so blow me down, I think I have done it again. I recall getting 2 sets of free options before because some people did not take them up, so I was able to get more. Can't remember how that worked. Maybe I was able to exercise a right to get options. It does show how long this company has been sitting on this tantalum project in Egypt. We must remember that they have an interesting copper project in Ethiopia as well, though this project is less advanced.
GIP had a memorandum of understanding with Thyssen, a German trader some time ago. I'm guessing that the agreement has expired. In any case, the strong Asian market and the prospect of purging purchases of Congo tantalum strike me as a good basis for supporting the tantalum market. Based on the following price action, we might conclude that:
1. Shipments from the Congo are irregular because of civil unrest
-------------------------------------------
Andrew Sheldon www.sheldonthinks.com
No comments:
Post a Comment