Will current Drill Results trigger a Rally?Let’s recap, today EAG has a MCap $14.52M, SP
.13, Shares O/S 111.7M
Has proven 699,000 High Grade Ounces, at 7.67 g/t using a 3.0 g/t cut-off and/or
One Million Low Grade Ounces (998K) at 4.17 g/t and 1.4 g/t cut-off, in its first Resource Estimate. (At $52.27 a gram with POG $1750, the High grade zone is valued at $431.60/tonne rock, 2.8M tonnes and the Low-grade at $234.65/tonne rock, 7.45M tonnes)
The Windfall Mine is located in Quebec with infrastructure nearby, an all weather highway passes by the property, Power traverses the property, we already have an underground ramp and camp. All of this, the resource and infrastructure clearly is of no interest to the investing public, who would rather buy safe haven USD’s and T Bills for safety? And I thought there was a Debt problem in Europe, and in the good ole USA? Not even the Gold Bugs will buy as evidenced by our MCap of $14M and SP at 13 cents.
So will assays from our current drill program light a fire under EAG? Or what kind of results would be needed?
Obviously, our latest drillhole in the current 25k program, EAG-11-295, “9.6 g/t over 3.3m” and “5.6 g/t over 10.55m”, didn’t even budge the SP one iota, for no effect.
What about something like EAG-11-288, gold values “7.47 g/t over 14m” pretty good but again no effect.
At one time Assay Results did move this stock. Remember 17 Mar 2010, headline EAG-10-196 returned a real nice intercept, 14.20 g/t over 52M. The SP responded rising quickly to an interday high 62c. Wow
.62, and a MCap of $68 million. Did I mention todays MCap is $14M? This was also the same time period when QE2 had just started, it was RISK ON, the juniors were being normally valued after the 2008/09 financial collapse. Not like today’s brutally undervalued by any measure market.
I wonder if even Noronts old glory hole (NOT-former owner Windfall) would move this stock. NOT-06-100, sampled 1617 g/t and 1327.9 g/t over 4.8m, some 52 and 42.7 oz per tonne. It sure moved the SP in a hurry, a triple was in short order.
IMO, a big strike would be needed in todays market to move EAG higher, something big with assays being very substantial. Then again Europes Financial System is on the ropes,…and the USA debt problem is still there and maybe next in the cue,…can you say QE3 bigtime and a resultant POG 2000 plus! Ben will Inflate this Debt away, a massive liquidation into the markets and the benefactor, all commodities soar including EAG. Tax Loss selling will also soon be over in about 3 weeks.
We need, excellent assays, a rising POG, a QE3 for Risk On and an end to Tax Loss Season, and then EAG will return to a True Normal Valuation!
Cheers, Mark