After kicking up so much of a fuss when HGO hadn't released their diamond drilling assays for almost 6 months, I really must address the results now. (Unlike HGO, I will address the good and bad results. No spin from me.)
The DD results were slipped into this quarterly rather than in a separate release. No fanfare. Not surprising when you see them. They found very little copper.
However, how good is this for a gold standard piece of spin...:
"Diamond Drilling Confirms Pit Design
The resource drilling programme completed earlier this year looks to have confirmed the suitability of the current pit design for the development of the Kanmantoo Copper Mines. The primary objectives of the drilling programme were to confirm the current geological interpretation and resource model, as well as for geotechnical analysis (Appendix 1)."
Woo hoo! Our pit design is Spot on!
In other words, 'we didn't find any extra mineable copper, so this is why we are pushing forward with the current mine plan as is!'
The second part is even worse, in that it claims that what HGO were doing was simply: "to confirm the current geological interpretation and resource model."
Baloney, guys. Sorry, but that is NOT why you were doing the drilling. HGO actually said this at the time of the drilling:...
"The first element to the programme is specifically designed to identify further mineralisation that might be captured in expanded pit shells and can be added to the mine plan. Eleven diamond holes (Figure 1.) are planned to target mineralisation below the base of the proposed pit..."
But, when you don't find anything, you post-rationalise and say that we weren't really looking for extra copper; we were just reaffirming our interpretation of the geology.
Please, no more spin like this, HGO. If the results are dissappointing, tell us straight. In a separate announcement in a timely fashion. No spin. Your shareholders are not dummies.
Yaq
HGO Price at posting:
26.0¢ Sentiment: Buy Disclosure: Held
