Question is - R U In?I noticed quite a few penny flippers and day traders referring to the technicals on this board and just a few words of wisdom.
In a market like we have experienced of late - technical analysis does not mean a whole lot since the recent barrage/massacre of all juniuors and spec stocks has tossed most technicals out the window. Just the fact that this deal is holding up should be a VERY POSITIVE sign going forward.
The bigger picture is as follows: I have been following the gold junior market since the mid 80's and I cant recall a deal in which:
-all the high grade hits are within 100 meters of surface
-more than half of these holes encountered this typical super horizon of 4 meter horizons of 100 plus gram per ton
I was performing some back o the napkin calculations on this deposit and using the grades encountered, what I came up with was:
For every 100 x 100 meter section there is about 220,000 oz of gold. So for every 450 meters of strike with 100 meters of width this will parlay into 1 million oz of gold near surface. So if zone 35 and 55 are in fact connected, it would appear that we have 1 km of stirke lenght and about 200 meters of width - which works out to over 4 million oz of gold already. And when you factor in that we still dont know about the lower grade material that surrounds the sweet stuff it could even be better. Toss in the fact that its open to depth and in some directions and this could get dizzying.
These are the types of deposits that are even profitable when gold is $500/oz and these kind of deposits are very very rare in this day and age - these can be crown jewels in any gold producers portfolio.
Now we know why this company was able to raise so much cash even in these brutal markets.
What I am saying here is that I am not gonna try to trade this since I know that it should go to much much higher levels down the road and I will regret selling any shares for penny flips.
That said, as is the case with all other gold juniors, our biggest enemy at present is the markets itself, and unitl sentiment tips towards these juniors, this and other share prices will remain depressed. And if the price of gold breaks down past the $1530 range (5 year support) then we are all in big trouble - at least in the shorter term.
Good luck to all longs!
Jandd