Ann: Exploration Update - Drilling Recommences, page-90

As is so often the case, it's about perception and truth. I assume that the SP has come under some pressure because the CU price has fallen somewhat.

Many people seem to be ignoring the fact that the CU price is still substantially higher than it was a few weeks ago. This is a typical behavioural pattern of investors, who are sceptical when there is finally some movement. I wrote something about this in the HMX thread - no need to repeat it here. It is a paradoxical behavior - but one that is repeated again and again.

I assume that the scoping study will deliver a positive result - we will then see whether this leads directly to production. I suspect that this will be the case. The deal with HMX would not necessarily make sense in such a context. I suspect that the CNB team knows it - and so do the consultants around it.

The chart, on the other hand, is "behaving" quite perfectly. The resistance at 90c has not (yet) been broken upwards. The ascending triangle is probably looking for a decision in the next few weeks, which would probably be triggered by the scoping study. I am also of the opinion that we will close the gap at around 1.40-1.50 in the next 12 months - that would also be the target of a breakout from the ascending triangle. Of course, this is "just" technical analysis and a bit of coffee grounds reading.

I think possible excursions of the SP below 70 cents would be buy prices - if one believes in a halfway positive outcome of the scoping study.DYOR