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Baru Gold Corp V.BARU

Alternate Symbol(s):  BARUF

Baru Gold Corp. is a Canada-based junior gold developer with NI 43-101 gold resources in Indonesia. The Company is focused on developing and producing precious metals projects in Indonesia. The Company’s focus is on developing precious metals projects with significant resource upside potential and near-term production capabilities. The Company’s Sangihe Gold project mineral tenement consists of one block covering the southern half of Sangihe Island, located between the northern tip of Sulawesi Island (Indonesia) and the southern tip of Mindanao (Philippines). The Sangihe Project covers 42,000ha; this includes the Bawone, Binebase prospects on the eastern part of the island and Taware prospect in the south-central region with infrastructure in place. The Company has a 70% interest in the Sangihe project.


TSXV:BARU - Post by User

Bullboard Posts
Comment by tooclassyon Jun 16, 2011 5:14am
265 Views
Post# 18722272

RE: RE: RE: Thank you for asking!

RE: RE: RE: Thank you for asking!
I understand any frustration with the low EAS stock price, but come on, the first 43-101 resource is always going to come in lower than the resource updates that follow, it is preliminary and doesn't suggest the ultimate size of the Miwah district. Yes, management (and the market) probably overestimated the size of the first 43-101 resource and I am sure they are trying to figure out why the average grades in the report were significantly lower than seen in the many long drillhole intercepts they previously obtained. One theory is that this is something that will correct itself with in-fill drilling; it is a technicality of 43-101 resource modeling methodology. As for the stock price, you can compare the stock price to the $8 per share that EAS had at the beginning of the year, or you can compare it to the $.50 that the stock price had before Mike Hawkins proved up ounces at Miwah by initiating a drill program. Both comparisons are correct, but each one leads to a different conclusion about management performance.

I am quite sure that issues of resource size and grade will work themselves out at the Miwah district as further drilling, both exploratory and in-fill, improve the resource quantity and quality. Management's main responsibility it to look after long-term progress and growth, and it is that which should be judged, and not so much the short term stock price gyrations. I doubt more than 15-20% of all the drilling that will be done in the Miwah district has already been done, and this suggests that the resource there will greatly expand over time, making it more attractive to majors and to regular investors. It is much too early to discuss the attractiveness of Miwah to the majors now, as so little of the eventual drilling has been done, and the ultimate resource size has not yet been determined. We would not want a takeover offer now for these reasons. Miwah, like Rome, wasn't built in a day. Good things take time.

TC
Bullboard Posts