Daily Ichimioku - Study

Just so nobody accuses me of Monday morning armchair quarter backing in their pajamas needing a shower because dem stink, I thought it might be a good idea to follow up on the daily Ichimoku chart.

Any chart that has called the rally and the decline has been this one daily chart analysis. Note that the low point as recent as yesterday corresponds to an original low point months painted months ago.

I speculate that the following will occur in ensuing days, it need merely be watched.

supersize: http://www.flickr.com/photos/11747277@N07/5733897624/sizes/l/in/photostream/

stockcharts.com

I have also gone through the news releases in recent months, there is nothing to suggest in the meanwhile that anything has gone awry.

In fact, the statement that the company had processed some 9k+ tonnes of dry ore from the Roy Lloyd mine during March @10.25 g/t suggests something very definite. The low grade stopes in the stoping schedule (1, 1A, 2A) only contain 7k+ tonnes of projected ore to be mined. The results show that the company processed 25% - 30% more ore than originally planned, possibly from these stopes.

That means the lower grade stopes contain more ore than first thought by a significant margin. Secondly, any cursory glance at the extremities of the mineable portion of the deposit suggests that the mineable portion widens out with depth. So you can conclude that the restrained forecast from the Updated PEA is just the most pessimistic outlook on the mine and that mine life will be extended with ease.

Thirdly, I speculate that the company is preparing to table mine expansion from the Roy Lloyd mine. They must have encountered another en echelon vein that did not outcrop in the southeast face or hanging wall, due to the fact that one drill hole in this area was said to be not completed.

Once the market realizes that this is a growth story, and not just mining the ore shoot, then things will change. If they ARE mining more ore than planned, and are able to maintain the projected grade, say in the 12g/t - 15g/t, this is cause for celebration.

-F6