Some thoughts about the NR...
posted on
May 30, 2008 09:39AM
Creating shareholder wealth by advancing gold projects through the exploration and mine development cycle.
If I had to guess I'd say we might have a nice little run up at the end of the day in anticipation for news...again :P
Also as far as the news taking as long as it has, I was actually thinking this over this morning. It makes the most sense to me to drill all around and through an anomaly before reporting what you have.
Otherwise whats going happen is you'll have 2-3 quick NRs with excellent results (because you know where the gold is and are just confirming the continuity).
Then you're going to have that one NR (where they find the edge of the gold) and it comes up pretty much dry and everyone goes running for the hills, chicken little style.
If they do all the drilling in advance and present it as a whole it ensures that everyone looks at what they do have, rather than what they don't.
I know its sometimes hard to put all the drill locations together to visualize what a company is trying to achieve. Unless they provide a diagram with all the holes and where the current and past ones fit in, you'll have a heck of a time piecing it together.
So when they reach the edge of the gold all people see are the "bad" results and don't fit them into the big picture. I could imagine it being very tricky for a company to build a resource while not disappointing the shareholders. Even if the resource is incredible you have to reach the end at some point right?
I think drilling the whole area at once is pretty brilliant actually. Sure it takes longer and the shares have dropped a little. But it just makes the most sense to the company and stability of the shares to release it that way.
Hopefully I'm right on this one but for all I know they're still drilling the good stuff and haven't reached the edge yet. If there are any other theories floating around please throw them out there.
Cheers.
Gamblor.