RE: Stock Price Correctionshow me again where the positive fundamentals are???
looks to me like they are planning to take a total of 40,000 tonnes of material of which there is no resource estimate or grade defined. judging from historical work on the property (from the minfile report and the 'evaluation report' ) a whole lot of the biggest vein has already been depleted. and that was only 9,000 tonnes. where are they going to find another 31,000 tonnes? and even that is miniscule compared to most companies looking to build a mine. if they ever want to build a mine on the property they need to DEFINE A RESOURCE. i don't think the propery will have the necessary tonnage to support a mine. a few bulk samples maybe. but that cant create sustainable earnings. its a one time shot. the vast majority of exploration companies are trying to define resources in the millions and tens of millions and hundreds of millions of tonnes. the key figure for gold mines on the bottom end seems to be around 1 million ounces of gold in the ground to build a mine. 40,000 tonnes at .75oz/tonne is 30,000 ounces. thats a far cry from a million. and there isn't even a resource defined for the 40,000 tonnes.
looks to me like a fully diluted market cap of about $35 million is 'irrationally' high.
i think this has a long way to fall before its valued properly.
justify the current valuation and show me the positive fundamentals.
i think its down from here.
ggup