Ann: Spectacular High Grade Gold Continues at New Bendigo, page-94

Hi Bebs,

There was one exceptional result, but the majority of the results were quite poor. When reading results you need to analyse all the results, not only results which the company chooses to highlight at the top of the report.

For shallow open pit gold deposits generally less than 120m deep, results of 20+ gram metres are generally considered economic. Ie. 30m @ 4.03 = 120 gram metres. If you calculate these for all the other drill results in the report most fall way short of 20 gram metres, which therefore downgrades overall the prospectiveness of the deposit.

Also, the market cap prior to the results was circa 70m+ which was quite high considering their early stage of exploration, which means there was a lot of hope and hype already factored into the share price, and the results needed to be above average to sustain the share price.

I believe the combination of the above factors is the reason for the steep fall in price.

On a positive note, they appear to have other prospects to explore, but it will likely require quite a bit of luck and persistence for the company to regain the market darling status it enjoyed prior to these results.

Hope this helps.

Cheers
Maverick