It's a dud as expected, but they were able to mention the word 'potential' 12 times in the document. Always thought they might find some mafics/ultramafics, but not massive sulphides. They have only found massive sulphides when drilling EM conductors, so they once again deflect to a new possible hope of some EM conductors North West of Stricklands. Already looking to move on to the next great hope, just like they have done for years.
I was wrong about the cap raise before this announcement. Somehow I thought they would be logical and go with a cap raise early while the SP was on a slight rise around 8c, with the great hope of the seismic target being hit to look forward to, therefore minimising dilution for existing shareholders.
Instead they took the risk of some success, so gambled on finding something before raising. IMHO that is poor management. Unless they come up with a rabbit out of the hat the next raise looks to be in the 4c range or lower. Spending about $1.6m/qtr with only $2.8m in bank at end of December. Diamond drilling is not cheap, (around $600/mtr), nor corporate and admin expenses with this mob!!
Good luck to those that still hold as you need it, but be very careful of the 'experts' here that keep implying this is a bargain buy on every drill program, with reasoning why the current program will hit 'the motherload'. Those that have been bullish for years have been plain wrong..
New multi year low today as people dump it...
I'm still of the opinion that there is no motherload here, just more of the same. That being large 'sheets' of mafic/ultramafics with a few scattered pods of high grade mineralisation here and there caught in some small traps. The sheer volume of mafics/ultramafics doesn't appear to be enough to have carried the large volumes of massive sulphides needed for a decent deposit. It appears to be the worst kind of exploratory ground, always giving some slight hints of encouragement (the small pods all over the place), so encouraging massive spending of funds looking, but always coming up short. That's the history of the last 6 years of exploration here..
SGQ Price at posting:
5.3¢ Sentiment: Sell Disclosure: Not Held
