50c is a bold prediction based on what ? I would also like to see the company move ahead with the iron ore deposit and reach jorc compliance but further work is required in this area so forecasting an arbitary value based on inconclusive figures is like divinng for water in the desert . Nowa has the potential to host a large scale ore deposit and as you are more up to date with the progress of the recent drilling campaign you can confirm this . They might be able to complete a round of 17 holes for this programme leading into christmas I have heard so hopefully they can have some success there . From my understanding they are having some technical difficulties with the dept of forests and sustainability and this issue is having some restrictions on the current drilling programme . Dialogue is underway between both parties however dealing with any govt dept can be drawn out and tedious which is the case here . After going over the results of the drilling programme and I am not sure how long this may last I would expect them to analyze the results and come up with some sort of economic model outlining the potential scale and grade over several areas . I have heard conservative estimates that this project might host in excess of 250 - 300Mt which could turn out to be a large scale project in its own right . It is difficult to calculate the value of such a project and I guess if any offtake agreements can be settled this will further provide working capital for the company . Many high quality resource stocks have been significantly discounted to the point of trading well below book value , perhaps if the market picks up and confidence is restored to a degree these companies might just be in a better position in six mths time .
GLM Price at posting:
5.0¢ Sentiment: None Disclosure: Not Held
