Hi Sisyphus. This is my take on whats going on here. This is all my opinion only and are happy to be proven wrong. My opinion is based on past actions of the company which have set up a repetative pattern of huge sales to SI at bottom prices and poor results by the company leading to the SP bottoming out. I agree that the stock market is an enormous risk and we take that risk. However, we take that risk based on the information provided to us by these companies.
Lady grey was a risk which we all know and took on. This was a area with huge potential that was locked away from exploration for many years. There had been some drilling in the past but nothing substancial had been located. They played the usual nearology card which they did at lyons and SA, and pumped the Lithium because of Mt Holland and the fact that Brian just came off a major score with Azure. They tested the soils and found the hot spots then out of nowhere they flipped and went after gold. Godwana was always about the gold. I cant believe they drilled and did not test for Lithium. Yet, they have given us no Lithium levels from the drill program and dropped the lease straight away based on the gold levels even thou the pushed the lease to the public and investors based on lithium.
They have now pruned our holdings again for the 3rd time.
They previously announced "Lyons and Edmund Project – Gascoyne WA The Company is conducting a detailed desktop review of all historical exploration for gold and base metals in the project area.A number of major mining house exploration teams, including BHP Minerals, Newmont Australia and Newcrest Mining, conducted extensive exploration in the area from the 1980’s through to the 1990’s. A number of geochemical and radiometric anomalies were generated by bothNewmont and Newcrest particularly in the Hart Bore area on the Lyons EL. Several were drilled with auger and RAB drilling with anomalous gold, base metals and REE values encountered. The Company is reviewing this historical data and is planning additional close-spaced geochemical sampling of the areas with gold and base metals anomalism."
I emailed them a couple of months ago and questioned the gold based on exploration underway at our borders by DRE. The gold price back in the 1980-90s wasnt great so grades found back then maybe viable now.
My guess (and I could be wrong) is they are using this time before consolidation to collate the data for release and to announce a exploration program of the area. They will announce this and as soon as they get a rise in the SP after consolidation allowing the SI's toill sell off for instant profit if they wish (again). In the mean time, any one who doesnt take up the offer is diluted again by almost 100%. They have already run the SP down from 3c to 0.001 by not producing great results and by mass dilution of the SP by selling enormous share lots to SI and now they wan to reset it at 3c to do it all again. I donot expect any exploration company to find the pot of gold on first attempt but walking away when you dont is not expected either. Eitherway, there is no need to sell over 2B shares at this level to raise money when we have $3.5M in tha bank. If they ran a consolidation at 30:1 now they would still get their 3c value and we would have less then 100M share floated. They could then release the announcement and get a rise in the SP with a share base this low. They have more thean enough to explore the area and if they find something and get a rise, then do a CR when it have maximum impact. Minimum sales for bigger income.If they find another project with possibilities they will still get a lift.
As far as I can determine, running a CR at this level is all about making money for the SI's, new boss and the underwriters "Inyati" only. So they, including Peter stand to make a windfall off everone elses loss. Inyati must be making a tidy little profit from us. I am more than happy to be proven wrong here, but take a look at the last 4 years. Its the same thing over and over. Murraydium will be the next to go. Then Edmund. Once they find another patsy company to buy or new lease.
I was once one of the biggest supporters for this company as it had huge potential. Even flew to PNG to represent SH's at the original wardens hearing at Tolukma on my own dime. All integrity is gone now, They used to do CR's based on results and seek JV's with major players. My big hope is that manage do pull this out of the gutter they have created but I dont see it from here. This is the 4th boss since FNT and nothing has changed. Rinse and repeat. If they want us to have faith then Peters shares should be placed into Escrow for 2 years. That would build trust.
Good luck making your decission. And I hope you can recover your losses someday.
GD
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