Ann: Drilling underway at Hawkins lead-zinc project, page-19

I picked up more oppies earlier in the week for reasons similar to what you have outlined earlier.

When Hawkins was vended in almost exactly 12 months ago, the shareprice briefly peaked just under 60c.

Clearly it took much longer to finally get drilling (undoubtedly a significant factor in the drop from there to here, in addition to the recent raise), but now it is drilling. Assuming the shareprice can get back to say 50c, oppies should be trading at 25c minimum (25c exercise), which at current oppies price is potential for over 300% gain.

The oppies are quite illiquid, especially at these levels and no guarantee that the heads get back to 50c soon, but would anticipate that should the low 20s clear (cap raise price), considering the low shares on issue, it could run quick.


Of note to me, I had assumed that the company was going to AC drill then RC drill later in the year (~Q4) as per prior presentation schedules despite the drilling contractor awarding ann mentioning that getting multi purpose rigs (AC/RC) being vague but hinting they may RC initially also. However it was slipped in the quarterly that they will follow up any positive signs with RC immediately and that is also made clear here. This has slipped right under the radar in my view as RC will be the drilling that can potentially prove something significant. Perhaps if this gets some notice, there may be a stampede in anticipation of initial results or even visuals. Given the low EV currently, reward/risk at these prices is significantly attractive to me.