I think what it means is take us over now or pay more later. The drill bit is about defining a measured and indicated resource which is the basis of mining decisions as only that resource in bankable studies can move to proven and probable (obviously the risk here is we don't have as much resource as we think but I doubt that). I have posted previously that I am anticipating a measured and indicated resource for the area around hole 1 and 2 of two to three times of PLS (and likewise for hole 7). Will be interesting what they do around hole 3 - 6. You don't mine around an inferred resource hence why the takeover price is been quoted by many here at the 25c - 35c mark (and prices above 50c have always IMO need to rely on defining a JORC resource with a measured and indicated resource - let the theory be the reality of JORC in PLS type comparisons). With an indicated and measured resource you can start looking at takeover prices north of that IMO if the results come in as assumed/anticipated, but herein lies the risk that they may not but that is the risk of investing. The question is now will the suitors move earlier on TO or not or pay more later. Game of cat and moue has just started here IMO in the game of bluff and who blinks first. All IMO.
AVZ Price at posting:
22.5¢ Sentiment: None Disclosure: Held
