Gold Anomaly is in the process of a Capital Raising to accelerate their previously announced 10,000m drilling program at Crater Mountain, they have just entered a Trading Halt.
Looks like the results that Macnab has found at Crater Mountain have been extremely positive and exciting. Very deep gold intercepts at 0.80 grams and up to 1.46 grams per tonne of Gold!
I was expecting this CR in June or July, but it looks like GOA is very keen to get into the multiple drill hole 1000m deep drilling program to increase their JORC compliant Gold Resource as soon as possible!
Hopefully we will all share in this capital raising, which I am estimating will be a raising of around $10m at 3.5-3.8c per share which means around 300m shares will be issued. Any higher and that will be a bonus!
This will increase the amount of shares outstanding to approx 1.5Billion Shares, but the end result, will significantly outweigh this capital raising.
Even if Macnab only finds 5 million ounces, from the shallow gold <300m, younger geological event, then the enterprise value of GOA will still be as follows:
$150 per ounce x 5,000,000 ounces = $750m Market Cap Divided by Shares Outstanding 1.5Billion = Share Price of $0.50
If, as Mr Macnab believes, he does find gold below this recent geological event and the resource rises up to 10million ounces, then the share price will rise to:
$150 per ounce x 10,000,000 ounces = $1.5B Market Cap Divided by Shares Outstanding 1.5Billion = Share Price of $1.00
Even a worse case scenario and only a 5 million ounce deposit is found after this drilling by Christmas 2011, a 50c share price means a 1300% Profit!
And if Macnab does find what he expects, a significantly higher return on investment is to be expected!
Basically even with additional shares outstanding, the multiplication factor of a resource definition and the record high gold price far outweighs this for a significant share price rise!
Cheers Nectar
GOA Price at posting:
3.7¢ Sentiment: LT Buy Disclosure: Held
