Today's drop explainedToday we once again had good news, but also a drop. Here is my take:
in the press release they talked about how "The first batch which has been processed included the material from our first stope and lower grade material left behind on surface and underground during the 2004 bulk sample conducted by previous operators. As part of our bulk sample plans, we included this lower grade material in our first batch while we optimize the milling processes.
in doing this I believe it lead investors to believe that the first batch of the bulk sample has been diluted with this "lower grade" material, and therefore the results could and may be less than expected/optimal and therefore if they decide to relase the '1st batch results' there would be a dip. If this is true, investors would want to get out before that dip to be able to re-buy at a lower cost. This is how i initially read it. So I called the company and spoke to the investor relations head and he agreed this could be interpreted this way, given how they presented it. However, when I asked if they would be releasing the batch results as processed or waiting until the entire 35000 ton sample is complete he said they have not yet decided. In my opinion, this drop is nothing but the nervous investors getting scared by a poorly written paragraph in a press release. It would have be nice if they had been more specific about how much of the 'low grade material' was included, and if it would be kept seperate from the rest of the bulk sample results for reporting puposes. Either way, any drop associated with this is another buying opportunity, of which I think there will be precious few of in the coming weeks. Given the sheer amount of VG in drill samples, the consistant high grades being found, interest and more interest from E. Sprott, I think any sellers at this level are going to deeply regret their actions. GLTA.