Muted Response to NewsMarket response is muted but I guess that’s to be expected. Results have been good but let’s face it, this is infill drilling and the results are in line with expectations. The thing of it is that the resource envelope is not being materially expanded – yes, for the 43-101 but come on, we all know that it’s just a formality. EVG’s news release from October 09 implied these types of results. I took a position knowing this (and others on this board too I suspect).
“President and Chief Geologist, Dr. Quinton Hennigh states, “Drilling continues to support continuity of gold mineralization along the south side of North Stock. The strike length of the higher grade zone currently extends about 240 m and is open to the northeast. RSC-039 indicates that it can start less than 15 meters below surface and RSC-046 indicates it continues to a depth of approximately 300 m. The higher grade zone appears to be approximately 65 m wide where it is hosted in the diatreme breccia, widening to about 90 m at drill hole RSC-039.”
What EVG really needs is another high grade intercept (one that isn't already priced into the stock)to suggest obvious economic grade and an expandable resource. Whether this be RSH porphyry, Carlin or Nunavut, it doesn’t matter. Managements past problems have nothing to do with current valuation. Infill drilling at RSH will lazily meander into a 43-101 resource calculation that will in all likelihood be bought by amateurs only to see the share price drift lower during the summer... unless EVG gives the market something to get excited about. The world is full of 1 MM oz gold resources. Who gives a crap? Does the fact that you own it make it special or justify a revaluation?
Tookie has done a fine job stabilizing the share price, moving it upward and buying time but really I think we all are looking for a home run here and that’s not going to happen unless we see something new. Quinton is still the linchpin here. Long low(ish) grades from Carlin are not going to cut it anymore. The market needs to see some positive follow-through with these projects. I’ve taken a position in anticipation of that and would be a willing buyer of more on a say a nice Carlin strike/breakout.
I apologize in advance for being too honest and I realize that my opinion is not what people want to hear so whoever that mature sole is that makes a point of rating my posts a 1, go ahead, here’s another chance (clever and intelligent you).
In the mean time Rah, Rah, EVG. Remember, “one man’s delusion is another man’s hope.” Just made that up, but feel free to use it.
Irrev.