extract from The Australian......
Erin Resources (ERI)
SOME wizened types out there reckon that there is little point nowadays getting too excited about early-stage gold exploration in West Africa.
It seems that they have been disappointed too many times after a sexy-looking geochemical anomaly has failed to live up to its early promise.
They say that time has shown that it is wise to wait for some drill results and see what lies beneath the promising anomaly, and how large it might be.
Yes, the average punter might miss getting in early on a couple along the way, but too many screaming gold targets have failed to deliver anything much … or anything at all.
That’s the view of the wizened types, anyway. But it is worth remembering that we are talking about a part of the world that has served 280 million ounces of gold in quick fashion.
And thanks to gold being out of favour with equity investors — even if the yellow metal is doing OK at more than $US1300 an ounce, or 6.5 per cent above its level of a year ago — there has been plenty of M&A activity involving West African assets.
That activity suggests that there is value to be had, even if equity investors can’t see it at the moment.
All that is by way of introduction to a little thing called Erin Resources (ERI).
It has been attracting the interest of those that have remained faithful to the concept that West Africa holds the best hope for an ASX junior to come up with a company-making project, as it has done on numerous occasions in recent years.
Erin went in to a trading halt yesterday pending the release of results from drill testing of its Lingokoto prospect in Senegal, near the border with Mali.
There has been a buzz about the company and Lingokoto, with the buzz having much to do with the fact that Erin has a tiny market capitalisation of $4m, itself explained by that apathy to early-stage West African exploration referred to earlier.
Given it has such a small market cap, and is tightly held, there could well be a sharp response in Erin’s last sale price of 1.4c should the results point to more promise at Lingokoto, creating what could be another missed boat lament for those wizened types.
Originally published as
Juniors chasing big rewards
http://www.theaustralian.com.au/business/juniors-chasing-big-rewards/story-e6frg8zx-1226972793947
