In my opinion, not a good news releaseBay.V only completed 3100 meters, but they were announcing that they would be shooting for between 4,000 and 6,000.. A poor result. 9 holes drilled, so I calculate 3100 divided by 9 = an average depth of 344 meters. Is this deep enough?
If you look at the acqusitition of the Virginia play and its timing, makes me wonder if this was a defensive move to soften the blow and provide some de-risking since Aston Bay will have no news until October and no drill activity really until next season.
We find ourselves rolling into September. Likely no relief from the borad market sentiment since the stock market usually has a bad September, but not always. Bad crashes happen in October, but again, not always.
Aston, Aston, Aston, what am I going to do with you in my portfolio...?
Ok, ok, ok, not all bad by any means. Over the medium and long term I think this is a great investment. Pulling their sedar filings, they have something like $7M in proven deposit, no debt, lots of cash on hand, low burn rate. If you take net assets and divide all shares outstanding, I think it comes out to something like .10. So, at these levels, a purchase isn't too far off book value.
You are getting not 1 but 2 award winning gelologists to target future drill holes. So, any solid results from Aston from this year, adds value. Any results from the Virginia property adds value. Any results from next year at Aston adds value. Virtually no premium being assigned for arguably the most talented exploration team (Ulrich, Broughton and Taylor) in mining. And you're getting all of this at a great price.
To me, it's only a matter of time. Tom Ulrich comes across to me like a good honest CEO, with plenty of geo experience. And for him to attact exploration geo talent like Broughton and most recently Taylor, success will likely follow. I want a geologist at the helm at this stage, not a finance guy and not a promoter.
Full disclosure: I'm an Ivanhoe investor refugee. I made some money but sold because the Congo and its laws are ridculous. Following Dr. Broughton led me here. I own some Bay.v and will likely be adding over the course of the next few months. Far too interesting a story not to hold for the long term.
GLTA