9tees, as I say have a close look at the x-sections. The pink lines are an interpretation of the graphite on a x-section from the drilling at Gapyeong. As for the 10 metre intercept, this is all part of their polishing, that is a down hole drill intercept (ie not true thickness of the graphite unit). Have mentioned this before, they have a history of drilling down dip to make the intercepts look more impressive in the announcements. Look more closely, that intercept is 6.7m, not 10m. Furthermore that 6.7m intercept is at 90m downhole (so about 70m below the surface) and packed with internal dilution (ie a couple of paper thin high grade assays have been used to average out the intercept, again to make it appear impressive.
So looking at the picture below, you can see that from the surface down to 50m there is nothing that is of a minable width. And for the 6m intercept, even if you forgot 2 high assays are carrying it, the fact that its 70m below the surface means it will never be economic to mine. Just a simple and glaring fact, PSM have nothing that remotely looks like a mine at this stage and cash will run out by end of March. Why do you think the Directors are running for the hills, the writing is on the wall.
As for the test work, you are 100% correct, why would you bother doing test work on something that you are never going to mine? Its called smoke and mirrors and designed to divert attention away from the fact that they have no resource or any potential of defining a resource. Make the punters think they are going to be selling something and ramp the SP, Mr Market is sharper than that and hence they have a floundering SP.
DYOR
Rocco
(20min delay)