As for grade (quality), thickness of interval (tonnage) and shallow orebody (quality, easily mineable), this news release is top notch. As articulated in the NR, some of the results are spectacular. And it is showing that NE, N and NW direction is still open, however couple holes are showing limitation in northern part of the NE direction. But as seen from direction of movement or relative location of area D and area A, I kind of expected the orebody shall get narrower but potentially higher grade in NE direction. So this NR lacks only substantial increase of lateral footprint of orebody (it added but not substantially), as the oxide zone is flat lying we need lateral expansion for tonnage. Size is good on its own due to grade and shallowness, but to be attractive to large players there is room to improve.
For feeder structure, the search is ongoing i think, had some promising results, feels like management is getting closer to understand full geology but just needs a bit more time. Maybe more drilling in Area A will provide them and what happened geologically in the vicinity. Once you have good understanding of geology, structural control and relationship of rocks, it becomes much easier to come up with valid additional targets. Especially northern side of the NE-SW faults zone could very interesting for lateral oxide zone target along the fault.
When you have great results especially in obvious NR time expectation, then sometimes people/market kind of adjusts to it and starts to play, very similar in this case. People will be accumulating in between NR and starts to sell to the news with good results. With high volume today and 10% price gain is good, IMHO. So now accumulation will continue and once sell volume dries up, usually re-rate occurs. In this case SP will probably test high 20s, that we are all talking. We just recently added serious institutional investors. Usually they are very patient, diligent and professional meaning without emotion of FOMO. With their algos, they will not pressure daily prices until really volume dries up.
Another item that is affecting is Gold Price. Even though it is quiet stable right now, market is just nervous about where it might move in next 3-4 weeks. After recent fall of price, it is understandable.
I think with such a rate of good drill results, i would not be surprised if management can bring in somewhat strategic investment into the company by end of April, as i do not see any large holders except Scotia and Mr.Greenslade. So gold specifics funds will start buying within next few months, will see more substantial shareholder notices. These corporate events will give big bumps to SP.
Hopefully will see past 0.24 AUD in next 3-5 trading sessions.
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