RE: why BravoAnother point on this:
Some of their most recent holes have beenexcellent and in entirely new areas, they are working on a newdeposit. This hasn't been recognized at all.
This summer they did the airborne survey, and based on the interpretation were able to get a completely new picture on the possible extent of the project. Furthermore, they were able to raise over $8MM, and spent money mobilizing drills onto some of these new prospects prospects prior to freeze up. They didn't hit them all, and they didn't recover core on all the holes they drilled, but the money they raised should allow them to plan for and budget for a serious drill program next year.
With every new set of results, the scope of the project gets bigger, and consequently the risk decreases. Actually the scope is much bigger, because there are some large step-outs as you mention, not to mention the potential for additional large deposits on the property (based on airborne survey).
I think that complaints about dilution are ill-informed. It takes money to explore, and for a company that has does not have a lot of money, the questions for me are:
- How easy is it for them to raise money, and
- How wisely is the money being spent
In terms of catalysts for increase in share price:
- 43-101 report should make a big difference, particularly since it will incorporate the bonanza drill holes, and
- Assays from new areas - possibly based on outstanding holes (if high grade is found), but also based on next years drill program.
As to what to expect from new holes - signs of alteration and trace gold is sufficient for me at this point in time, as it points to a large deposit. Significant results on the order of 1g/t or better would be a bonus. Follow up geophysical work will allow them to target these new deposits in next years drill program.
I say keep your eye on the prize and Ignore the penny flippers. If this management was a bunch of screw-ups, I could see cause for complaint. The reality is that they are very good at what they do, and have advanced this project significantly. Homestake has been dressed up to sell......