This is not going to be a popular post - but please play the...

This is not going to be a popular post - but please play the ball ie. the issues I'm discussing rather than the man ie. me.

First off congratulations to those who bought in at much cheaper prices, this was a good announcement which deserved a price rise however the question is whether to invest at current prices after today's rise, which values the company fully diluted at approximately $40m?

Many on this forum are excited about and some are claiming that the 4m @ 74 gt is a company maker - this is a very good intersect, but for a deposit to be actually economically viable it requires numerous intersects of suitable grades and widths to form a mineable deposit. If you look at the below table showing the intercepts at Contessa, besides from the 4m intersect, the majority of the other holes drilled have fairly narrow widths with low to medium grades.

The Gidgee Flat deposit looks promising but only has 1 intercept greater than 20 gram x metre hole (11m @ 5.8).

So in summary, a promising announcement which is encouraging for the system as a whole, however, for me, the current market cap has overshot itself by approx 25% and unless further promising results are announced from the area I expect the price to drift down towards 3.5 cent area.

Cheers
Maverick