Comments on 2-14-12 News *I thought overall the assay results were very good to great. Not spectacular, but great. It's good to see hole ICN-023 at 31.4 meters at 2.73 g/t about 75 meters to the ssw of monster hole ICN-003. It's blatantly obvious ICN's share price and resource potential are world's apart, and frankly i'm surprised we're not in the 30's today.
Key area of the news release in my opinion...
Carl Hering, President and CEO of ICN Resources, stated that "We are pleased to have received all of the core results in the Church Zone and to have confirmation of the continuity of strong mineralization in the area. These results, when integrated with prior data, should allow us to better define the structural orientation of the higher grade mineralization. This process, along with initial metallurgic work, are the next steps in designing further drilling on the property."
The 11 core holes were all drilled around discovery hole ICN-003, within a 100 metre by 150 metre area. The overall pattern of the core holes is considered too wide-spaced to define the extremely high gold grades (greater than 1,750 g/t or greater than 50 opt) intercepted in three previous holes, ICN-003, 013 and 014 in the original Church discovery zone. However, hole ICN-024, with 18.4 metres of 4.47 g/t Au, including 3.7 metres of 15.6 g/t Au and hole ICN-023, containing 31.4 metres of 2.73 g/t Au, with 1.8 metres of 37.7 g/t Au lie along the same north-northeast structural trend which falls within a broader 400 metre long northeast-trending corridor of mineralization. Hole ICN-023 lies the furthest south of all the core holes, approximately 75 metres south-southwest of the Church discovery hole. Many of the RC holes reported previously are located both north and south of the core hole area but lie within the same north-northeast trending mineralized corridor.
ICN core and RC drilling has now intercepted high grade mineralization (greater than 16 g/t Au) within this northeast corridor along approximately 280 metres of the overall 400 m strike.
*I'm surprised that around 850,000 shares were traded including at the alpha... today's dollar volume is probably around $200,000, or less about 115 ounces of gold at $1720 ounce...consider that GTA traded probably around $8 or $9 Million worth when including Alpha... (assuming avg cost of $1)... or about 40 to 45 times the dollar volume of ICN.
the alpha:
https://www.alphatradingsystems.ca/ALPHAMARKET/MarketActivity/SymbolLookupResults/tabid/97/Default.aspx?pid=92&symbol=icn
*Company needs to follow this news up with further updates, plans, etc in the very near term. Management credibility is becoming strained due to the fact that these assays took 4 months to release (first 3 cores were done 10-13-11 at the latest), and no indication of specific timing of an execution plan going forward...
*That being said, unless one thinks there's about 107,000 ounces in the ground across all ICN properties (there should be much more than that in Church alone), and ICN's resource is worth a conservative $100 an ounce in the ground, a share of ICN sold at 21 cents is not smart. Considering the shallow, high-grade nature of Goldfield Bonanza, coupled with a favorable power, water, road, housing, airport proximity, regulatory and permitting environment, ICN's Goldfield gold should be $200 an ounce at a bare minimum and probably higher. When using the minimum 300,000 ounce target from the long-published Presentation, you get a share price of about $1.20 (almost six times the current price). Using less than the midpoint of the Goldfield Bonanza target range from the Presentation would yield a share price of almost $4 (twenty bagger).
*In different terms, If ICN does possess 1,000,000 ounces, this means each ounce is backed by 51 shares; at 21 cents, each share bought is similar to purchasing an ounce of gold in the ground at about $10.75.
*No sugarcoating this; it's very bush league not to produce a drill map, update the website (share structure, one of the best attributes of ICN, is as of 3-31-11?), update the presentation, or publish Q4 2011 financials and MD&A prior to this news release; let alone present a plan of future action in the near term. It would be akin to wearing a wrinkled, borrowed ill-fitting suit to your wedding, and even then waiting till the after the reception to make honeymoon plans...
*Bottom line is the massive mispricing in the shares vs. the potential resource will overcome even management housekeeping issues and/or share price manipulation.
*In my opinion, worst thing to do is not take advantage of this disconnect in price vs. value described above; I am and will continue to add down here.