pel/pela map nvg, lnc, ede, page-67

Legume - I don't want you to think I know more than the average interested person - I am/was a graduate chemist and biochemist - so may have some advantages. I have probably forgotten most of it. Anyway - I sincerely appreciate all informative posts including yours. I admit that I bought a position based on scant research - and have been filling in the gaps since. One thing I quickly noticed about the NVG team is that they appear to be quite entrepreneurial - as the area under application is begging to be further explored and tested. There are good reasons for lodging the PELAs as the following statement shows.

28th Sep 2012: "The project constitutes a shale gas play in the central part the Flinders Ranges within the Adelaide
Fold Belt in South Australia (Figure 1).
Navaho Gold’s technical team were aware of a reported gas flow from previous drilling in the
Blinman Diapir which indicated that the Neoproterozoic Tapley Hill Formation is prospective for
shale gas. Blinman-2 (drilled to a total depth of 2,031m) encountered gas at a depth between
1,200m and 1,600m within the Tindelpina Shale Member and equivalent vitrinite reflectance results
clearly places this unit in the gas window.
Regionally the Tapley Hill Formation in the central Flinders Ranges attains its lowest maturity and is
gas-prone making this area prospective for shale gas. The total organic carbon (TOC) profile down
Blinman-2 shows two relatively thick zones of fair source rock with values >1%. The structural
setting is permissive for possible higher TOC contents."

I hope they plan to sell them, and make a quick dollar. they have had an exploration well drilled gratis ;-). I am no expert on valuations of acreage - but from other transactions I don't see why the area around Blinman should not be regarded as prospective. So my thinking has evolved from post number 9001814 - to now thinking the PELA around Blinman should be valued more highly than the rest of the PELAs. However I still see a significant re-rating taking place with the market (me included) paying attention.

Sandy you may be right - they may do a placement or cap raise - but I think they'll wait and come up with a carefully thought out plan if they do so. You can see that they will need the money. I personally think they will sell the PELAs to the highest bidder and focus on gold - their IPO prospectus showed plenty of advanced plans.