red bore, page-6

Hi David.

17m at 12% Cu at Red Bore is not a fizzer. By the way that hole has been followed up in the lastest campaign with a diamond hole showing similarly abundant chalcocite / chalcopyrite. Results pending.

There is a heap of criticism of this stock on these threads that in many ways seems to be based on past share price performance, rather than current fundamentals. Coming out of GFC, THX was primarily a U stock. It got way overbought on the back of mega-bonanza intersections at Ngalia that couldn't be repeated at quite the same tenor along strike, and those speculative positions were being unwound amid overall poor market momentum coming into the Fukashima disaster. Perhaps it is those speculators who lost their shirts getting in too high on the back of those early high grade results who are complaining the loudest now.

Post Fukashima THX has tracked all U junior stocks - in fact if you check a chart - about lockstep percent perfect with PEN. So IMO, there is no unique circumstance for THX's poor performance since March. But the fundamental difference with most other U juniors, is that THX does have other quality back-ups such as Doolgunna, the ground around Pine Creek and elsewhere in the NT, Pyramid, the Kimberleys and Copernicus.

I haven't touched a U stock since Fukashima but I tend to think that a lot of the Ngalia value has been taken out of THX's market cap post Fukishima. In fact I would be happy in the right market conditions to see Ngalia spun off, as it looks like it should be able to be proven up to be a mineable resource, whereas the other projects are still at grassroots exploration stages.

So IMO, the chart looks like maybe it will put in a floor in at around 20c, and despite my persistent negative sentiment on U stocks post Fukashima, I am happy to tentatively buy THX recently at that price, as I believe Ngalia still should retain a fair bit of value and the other projects have very good potential. Time will tell if the exploration results and a supportive market can prove that hypothesis correct.