'Burying the Lead'I couldn't help but notice market indices were red across the board today and the price of gold dropped a little. I'm not suggesting this is the reason for PEM's drop, but it wasn't a particularly good day for a pop.
As for why PEM didn't capture the imagination of the market today, I have to admit I agree with those who criticized the format of the release. I believe journalists refer to what the PEM communications people did as 'burying their lead'. That is, the most potent and interesting pieces of information were hard to find for the average investor as one has to read the entire piece to get to, and understand, what PEM is saying. I certainly hope institutional investors, whose full-time job it is to research and identify the best opportunities, take a shine to PEM for the same reasons many of us have. PEM's share price dropped in a similar fashion following past releases only to go up during subsequent trading days.
At the risk of repeating myself, I feel compelled to highlight the following from PEM's release as it says to me the company has a 1,000,000 ounce prospect with work underway to prove it in the very near future:
"Based on the internal revision, the deposit is estimated to contain an inferred resource with approximately 17,000 kilograms (549,000 ounces) of gold ..."
and
"Upcoming exploration will target the Orogrande Shear Zone directly adjacent to the modeled inferred resource (on strike to north and south and down dip). The target may contain 15,000,000 to 25,000,000 tonnes of mineralized material grading from 0.7 to 1.2 gram/tonne. The target may contain from 337,000 to 964,000 ounces if intercepted by future exploration."
Yes, we knew the 2008 NI43-101 compliant inferred resource estimate was approximately half a million ounces, but we didn't know what the company thought was under the ground following the few and far between holes they drilled recently. More drilling is needed to confirm this estimate and this is exactly what PEM is about to do.
GLTA