Re Press Release
I agree there was a big negative overreaction to last weeks drill results. The results like we got with hole 87 I believe it was did not happen and many headed for the exits. But was that reaction warranted, the company continues to grow its reserves and there is twenty more assays coming.
Drilling for this season is over and with that I think we will see the company actively look to sell Homestake. It is my feeling they have taken the drilling as far as they want to go, precious metal prices are high and moving higher and I suspect they will look to move on.
In addition there is some developments planned that will enable the Homestake site to benefit from cheap electric power. The Northwest Transmission line looks to be a go and Anyox Hydro Electric tentative hydro electric project is only a few kilometers from the Homestake site. These developments will greatly reduce operating costs per ton. As well work is ongoing on building a road into the site. These are all game changer events that enhance the value and desirability of a major buying this deposit.
Many deposits are in remote areas with no hydro and road access so a deposit like Homestake has a big advantage.
I wonder if some of last weeks buying came from a large mining company interested in the deposit and taking advantage of cheap shares.