Pescod on EASEAST ASIA MINERALS
(EAS)
$7.56
+1.26
Wedid say we loved you right Dave Coffin...in a manly, non-
weirdway! We have been writing up East Asia consistently over
thelast 6 months and there is little doubt now that it is becoming
theplay of the day.
Today East Asia announced more drillingresults from the most
northerly test of the Miwah Zone,according to the ‘Hardrock Ana-
lyst’ indicating that at leaston this section the zone is actually
strengthening.
Thebig news though, is from drill hole EMD024,which cut 111
metresof 3.96 g/t gold, which included 22 metres of 15.74 g/t gold
atthe bottom of the hole.
When we talked to Coffin today hesuggested that there is the
chance that this could be a feederzone but on the other hand the
22 metres of 15.7 grams cameat the bottom of the hole, when they
get a bigger rig in therewho knows. Maybe this could have all
sorts of additionaldepth to it! Hey folks, imagine if this hole has
another 20,50 or 100 metres to it...and heaven forbid if it got
richer,this is the kind of stuff that dreaming about exploration
conjuresup.
Coffin points out that “The next few holes will determinehow
solid the upside is”. And in writing in the ‘HardrockAnalyst today
they add “This news is taking the stock to newlevels and again
making it a traders’ darling and cleaning upthe EAS market at its
higher level”.
In the‘Hardrock Analyst’ they write “Hang onto your hats”.
Well thathas been an understatement and to think that the Coffins
havebeen writing up this story since about
.50. Much thanks to
themwe have been writing it up since around $1.75, but either way
it’sobviously becoming one of the stories of the day and those
twoextra drill holes when they do come out in a few weeks will
addeven more excitement. Or not!
Coffin also adds to us today,anybody such as another mining
company that was looking atthis company before as far as poten-
tial now is going to haveto look ever that much harder and ever
that much quicker.
Anotherimportant fact, Coffin suggests, is that people are now
feelingmuch better about Indonesia, more comfortable with the
country.
Whenwe ask Dave Coffin our favorite question, if you had to
buy astock right now what would it be...he answers, “I’m relatively
happywith some of the ones I’ve got”. One would think so.
EASTASIA MINERALS (EAS) $7.56 +1.26
Mining analyst Wendell Zerbjokes “I thought that
$7.50 target would be good for a coupleof weeks!”,
and he is referring to East Asia, one of thestories he
follows here at Canaccord.
He mentionsthat he thought that hole 24 could be
good, but it was betterthan good (once again folks,
the fact that it ended in thesweetest stuff makes eve-
ryone wonder how deep it could goand how much
better it might get). Zerb however, tends to beone of
the more cautious analysts in a pretty high-risk busi-
nessand he points out that ten million ounce depos-
its of thisstyle, as East Asia’s do exist but there are
not a lot ofthem.
He also points out for those who want to be nerv-
ousabout it, that fundamentally this story now has a
relativelybig market capitalization. For sure Zerb
and others now willhave to be back to the books
revising targets, expectationsand the like and ever
more important will be those next twodrilling results
on an ongoing story that is becoming one ofthe sto-
ries of the day.
Backto Zerb and our favorite question, if you could only
buy onetoday what would it be?...He sticks with Minera An-
des whichhe calls “a good slow bet”, it has a “few warts he
suggestsbut it’s pretty cute underneath”, referring to some
of thelegal concerns surrounding the stock.
It was nice, hesuggests, to see some decent volume to-
day to help MineraAndes break through the dollar barrier
and yes, he points out,that their Los Azueles in Argentina
should be moving past thebillion ton level on their copper
deposit.