lode up, page-18

fair question - in short: at the AGM held late Oct it was advised that drilling was to commence shortly at some geochem/ VTEM/ secondary structure coincident targets at K42 and McDonalds Well and that Pattersons was going to do a roadshow to east coast brokers. timeframe inexact, although previous announcements suggested drilling to start Nov 2010 (ie this month).

Since then the second tranche of the placement has occurred and price appears to have lifted to recent levels around 15.5/ 16c. presumably on strength of additional $ through the door, the roadshow and the pending drilling.

there is also the fact that the market cap of this junior is much lower than most peers in the doolgunna region, notwithstanding the fact that they have ground with good historic geochem from high level WMC and CRA regional exploration, a fair few kms of Jenkin fault and associated secondary structures and some good VTEM targets.

management are not overly spruiky, and they only got their hands on the doolgunna ground start of the year and it took them at least 6months to get native title approval in place.

IMO a decent low cost entry into the region for a company with some relatively prospective ground.