Ann: Northern Molong Porphyry Project - exploration update, page-2

Drilling results tend to be looked upon as favorable in the market.  Due to the fact it is the strongest indicator of mineralization, promoting viability, or non-viability of a proposed plant/mine operation.

Looking back through ALK's Half yearly report particularly section 7 second paragraph:

"Assets are tested for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. An impairment charge is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's estimated fair value less costs of disposal and value in use. Where it is not possible to estimate the recoverable amount of an individual asset, the group estimates the recoverable amount of the cash generating unit to which the asset belongs. If the recoverable amount of an asset or cashgenerating unit is estimated to be less than its carrying amount, the carrying amount of the asset or cash generating unit is reduced to its recoverable amount. An impairment charge is recognised immediately in the statement of comprehensive income."

Does this mean a company can avoid a downgrade of assets through an annual review process?
And does it influence the market value of the SP, in that a down grade is avoided or shown as an amendment and the company can exhibit favourable drilling results though untested in actual underground ore recovery?

Because I'm a bit of a bone head I have trouble processing this sort of information, would like some of the smarties to shine some light on this if any would be so kind.


https://www.google.com.au/url?sa=t&...e.html&usg=AFQjCNESrul2-hitM1womGICuVinSBQ8Og


Cheers

P