:: AEX ::, page-3

iZLUSH: You are right about the number of outstanding results, and it is interesting that you make mention of the granite gneiss. Things have been quiet for a while now, and while it is thought that this could be due to intersecting the granite gneiss, we need to remember where this has taken place, namely the EM anomaly. If we stick with this theory, what reason could there be to not release results of other drilling when the gneiss at this stage is limited to the EM anomaly??? There are many drill results still outstanding as you have pointed out, and we do know that they are drilling in the Inco zone which is only 2km from the anomaly. So why not release results? Did the gneiss discovery have an impact on the Inco zone? It is all very secretive I would say...

I believe there are alot of good things to this stock, and it is just a question of when we see what is there to be seen! But with that said and done, there appears to be alot of manipulation by Ed and his mates with the lack of information released. Couple this with low volumes and alot of speculation, it certainly makes for one of the most interesting companies out there IMO.

Going on the announcements made by the company, it appears as though they were never intending on having the pre-feasability study completed before the end of the year. I could be wrong but that is my impression. With the drilling programme that is being undertaken they would surely need this amount of time to gather all the info. Obviously this has ramifcations relating to a) the outstanding drilling results and b) the presence of sulphides.

But if things are being pushed back there needs to be a reason for it. The difficulty is trying to pinpoint a motive, hence all the speculation. Is it due to sulphides, is it due to the granite gneiss, is it due to more oxides with higher nickel grades, or is it due to some non-drilling reason initiated by Ed (ie hostile takeovers)? So many possibilities!!!! One thing is for sure, with having the results of all the inco testing spending as much time as they have (or lead us to believe) verifying the results seems a bit rich to me....

What is of interest is the measured and indicated amount of 124 million tonnes. This is interesting as well as promising because this amount only refers to the Inco zone (as stated in the last quarterly report), not the beadell zone, basal ultramafic or the EM anomaly. This can only be a positive thing.

Furthermore, while not much has been released to the market, there is constant reference to Wingellina having the 'potential', further drilling to recognise and geological evidence for 500 mill tonnes of nickel in the deposit. Now it would surely be a silly thing to say it has the potential for 500 million and not produce at least 500 million, especially when there is no need at all to make a statement about the potential of the deposit!! (If this is being made in order to boost the s/p in anticipation of the 500 mill, well there are plenty of other things that would do that, like drill results IZLUSH) So to me this is a positive, unexplainable but still a positive.

What interests me is the gneiss in the EM anomaly. Things have quitened down since this was released by the company, and raises the logical question of what would finding the granite gneiss mean to the drilling programme and also the expectations of what they are looking for. To quote the last quarterly report 'the drilling and recently completed geological mapping has strengthened the understanding of the structural geological setting at Wingellina'. Talk about ambiguity!!!!! Comments welcome on this one, as it could be the sleeping giant in all of this (the jan 1/4 report talks about the feeder dykes in the gneiss as possible trap sites for the formation of sulphide deposits). An anomaly is there for some reason.....

Any theories out there as to the method of releasing results. While we have quarterly reports, in my experience good news in these tends to be hidden and not fully recognised by the market. Unless of course something major is announced. But that begs the question as to why wait till the quarterly report to announce such things?? Releasing them on their own will no doubt have more impact IMO.

The bottom line is they are holding alot of things back for one reason or another. What information they are witholding (whether positive or negative) and their motives for doing so seem to be the 2 unknowns here and is anyone's guess..

Comments welcome...

LIVAS1 (who holds AEX)