Ann: Drilling Commenced at Quicksilver Nickel-Cobalt Project, page-15

It is just possible that with some good results and the low number of shares on issue that this stock could see $1 again in a few yrs

surely anywhere from 2.2c now to 4.5-5c in the very short term


In this connection, Colin and Bruce, it's worthwhile pondering the relative current market valuation of Golden Mile against peers such as Widgie Nickel Ltd (WIN), which is perhaps only 6-9mths ahead of ahead of G88 in developing its Mt Edwards Project.

Widgie is a particularly useful yardstick for this exercise because, as it happens, both companies currently boast significant Nickel endowments, Indicated and Inferred, of around 168,000 metal tonnes - G88's Quicksilver, 168,500 Ni tonnes; WIN's Mt Edwards 168,060 Ni tonnes.

It's true, finding exact like for like is always problematic. Turns out the Mt Edwards resource is spread over 12 deposits, some underground - which I would have thought will add to mining costs. Against that, the Quicksilver resource while apparently more contiguous and free dig, is lower grade - though containing very significant magnetite iron-nickel-cobalt-chromium and industrial product credits.

Widgie is trumpeting Lithium as a possible secondary avenue of growth with some highly promising rock chip samples announced, and drilling heralded at its Faraday Project late last year.

G88 has recently confirmed REE mineralisation at Quicksilver, returning assay results that demonstrate significant REE mineralisation potential.

The corporate structures too, are fairly similar: WIN 251M Shares on Issue (Opts 13M); G88 205M (Opts 84M), though, yes, Widgie has about $8.5M cash vs G88 ~$800k.


Without in any way running WIN down (I think the market has it correctly pegged), the question to ask is: What are the relative Market Capitalisations of the two companies?

You might be astonished to learn of the disparity.

On Friday G88 closed with a MC as you can read above of $4.3M.

Just as an exercise to see where G88 might itself be heading in 6-9mths, dial up WIN and have a decko.*

You might strip out $8.5M to come to WIN's enterprise value.

Then you might seriously discount G88, fretting that the metallurgists haven't been getting Quicksilver right; or that our new CEO has made a huge clanger in joining the Company; or that a workable beneficiation flowsheet using their simple, physical properties, will never liberate all those valuable minerals from the Lake Grace clays.


Still an eye-popping number, when you subtract $4.3M, to juggle your doubts against.




(* Hint: $92.87M)