$1.50 has to be in reach; for a number of compelling reasons:
1) cash is now not a problem to execute a $10m drilling program
2) capital structure is still very tight - and Creasy holds 30%(?); free float is almost non-existent
3) valuation is very high, yes, now on the basis of discovery and proven theory; however with $10m bagged; it can only be upside given Nova and additional prospects; $250m Market cap is run of the mill for Thompson Bay type deposits in Canada; and we have a province; not only the Nova potential deposit
4)BHP have to be watching this with great and unbridled interest; they will sell their Nickel assets in WA for >$2B meaning you have >300 employees and smart minds looking for the next opportunity and of course the company looking to maintain their nickel / copper interest in WA ($50M will do for a 10% stake) price will fly to $2.50!!
5) Thompson Bay style nickel/copper is unheard of in Australia; yet have the highest margins (due to higher grade heavy sulphides) all dependant on depth and mining method of course; but the grade/magnitude is compelling at this stage given its the first of many anomalies drilled
6)SIR hold alot of ground (although not as much as HRR in the Fraser range) with multiple anomalies to drill; so Nova should be the first of at least 3
7) The institutions in Canada have just found out through diggers and dealers and we know how much cash they splash around for this type of deposit and for nickel in WA; Ravensthorp a good example albeit laterite
8) Creasy has credibility
not sure where we are going but it has to be to a totally different level
must say love to know what HRR are doing with their tenements; they have been quiet on it!
SIR Price at posting:
$1.10 Sentiment: Buy Disclosure: Held
