mark bennett believes investors

SIRIUS Resources boss Mark Bennett believes investors were guilty of overreacting on Monday when they wiped away close to a quarter of his company's value after some uninspiring drilling results.

Sirius has been one of the standout performers of 2012 after a stunning nickel and copper find in Western Australia took the share price from 5¢ to $3 in four months.

But investors showed on Monday they were willing to sell down the company just as aggressively as they have bought into it, bringing the share price down 58¢ to $2.03.

The selloff followed the publication of some drilling results from a target about two kilometres east of Sirius' initial find, which is known as Nova. The results revealed virtually no nickel and less than 1 per cent copper, and extinguished hope that the stunning results seen at Nova would extend east.

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But Mr Bennett said the area drilled was not on the same geological trend as Nova, and more drilling was soon to target deposits north of Nova.

He said the results did not diminish the viability of Nova as a development prospect. ''It doesn't change anything about Nova … [which] we believe is self-sufficient. We are just exploring the area hard to see what else might be around as well.''

Mr Bennett said since the Nova discovery in July, investors had started to buy into Sirius in the days prior to a new batch of drilling results being published.

''There is money piling in, in anticipation of us finding something. If it doesn't go like clockwork, people tend to overreact [by selling], I think.''


Read more: http://www.smh.com.au/business/sirius-gets-a-drilling-20121126-2a3j4.html#ixzz2DMdjuG7L