I'm just wondering if the market has been a bit disappointed in the resource upgrade 'only' going to 2.2Moz and was maybe expecting 2.5 with all the great results and promotion that has been going on with AMX? And maybe people haven't realised this is only an interim resource and they will do another one next quarter???
Their resource grade has taken a bit of a hit but the reasoning is fine for me as they have lowered their cutoff grade to 0.5g/t which is acceptable for this size of an open pit mine which Konkera probably will be.
One aspect which concerns me a little is the density numbers used for the resource estimate. 2.2t/m3 for oxide, 2.6 for transitional and 2.85 for fresh are all about 15 - 30% higher than I have seen for other West African gold resources. If Kitto has put the work into it and they are the numbers they come up with fine, but if they are overestimated that would equate to an overestimation of those percentages in tonnes of ore and subsequent ounces of gold in the ground...
But still I like the exploration potential and like the fact they are leaving a lot of their anomalies alone and just concentrating on generating resources below the 4 or 5 anomalies they have already started testing... leaving a juicy carrot for potential takeover companies...
Which is probably why the stock is trading at such a premium to actual resource ounces in their inventory.
AMX Price at posting:
$2.76 Sentiment: Hold Disclosure: Held
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