Ann: June Market Update, page-4

Are we illiquid yet? No trades in living memory ... does that meet the definition?

The only buyers atm are current holders and we can get them for 0.002. I, for one, am buying again on this second CR. From the update, my guess is the news doesn't start rolling until late August at the earliest, so things will probably remain quiet until then.  Suits me ... as I find more cash I will be still buying. The MC is ridiculous ... for the price of a run-down hovel in Sydney you can own this company

from the update:-

"Upon meeting exploration expenditure of $1.5 million the consortium will earn a 45% interest in the Mount Adrah Gold Project; a further 5% can be earned upon expenditure of an additional $0.5 million (effectively valuing the asset at $10 million)"


Personally... if you are giving 45% away for $1.5M I think you are valuing the asset @ $3.5M [I am still not happy about this deal] ... but [assuming the current CR is fully subscribed] that still gives a SP of 0.006 for the Mt Adrah component.

I have done a lot more research into the Halls Peak base metal prospect recently. It is worth going back to 2011 and following the history. Prior to the airborne EM survey, management were putting an estimate of 5M to 70M tonnes [low/high] for the resource. Then the deep conductor was discovered. If drilling confirms the conductor is mineralised [i.e. not just salty water in shale]
then the early speculation that the area is a new 'province' will be true. It really will put that deposit into elite company along side Mt Isa, etc.

Zinc is a hot item these days. 8/10 years ago you couldn't give the stuff away ... since then mine closures and low prices have brought about a looming shortage. In recent weeks, the market has re-rated several companies on the back of zinc discoveries. But the historical grades which have come from our little patch are well above what has been reported in these recent announcements by others. If Halls peak is a SEDEX deposit then it is common for the underlying, deeper lenses of mineralisation to return higher grades than is found closer to the surface.

So ..... what are the chances?

I am not a geologist and just learning on the run. But ... as I understand things so far ... the historical mines in the area are all situated along fault lines. The likely explanation for those deposits being there is minerals were 're-mobilized' by high pressure/temperature water moving through fissures created by the faulting. I am guessing that deep conductor is the ultimate source and SOC is about to prove it. If that is how things pan out ... then forget about SOC selling for the cost of a hovel, it will be worth an entire slum.