Ann: Trading Halt, page-28

I think we're overthinking it at the moment. Let's read the announcement when it comes out.. I agree that the SP can be nailed by a CR, but at this end of the market and with recent price action, they need to do more to get punter attention and that will cost a lot of money.

My hypothesis.

The market just isn't excited by lot of near surface hits no matter the grade. I know near surface ounces are dynamite for any processing (toll or own) potential, but this isn't currently being viewed as a possible processor investment, or one that is too small to really be worth chasing by the serious punters (investors at this level like exploration success more than development potential IMO).

I think the market wants to see some 250, 500 and maybe even 1000m holes to see how big an iceberg MGV is sitting on. All these near surface hits indicate a good possible ore source, and the risky money wants to see Rob and his team have a swing for the fences - i.e. Rob Waugh has a history of very good exploration success, and 100koz deposits are too small so they want him to back himself and his MGV idea rather than spend years building up to a million ounce deposit using the golf course analogy. Personally I like the golf course analogy, but it's still only going to see something like 50% of the resource as extracted ounces and that's probably only worth $250m to $350m to the valuation after deducting capital works and development costs.

In normal markets the gradual evolution of this strategy is rewarded. High grade gold producing cash to expand exploration. That's great when the gold price is lower, but at present with gold price near record highs there is more sense of urgency to demonstrate the long term nature of deposits (so they can work out whether to throw more money at them to bring them forward).

In summary, my guess is that the market want to see if this investment is a unicorn. To go after the unicorn they need lots of cash. Not sure what the assayed cost per metre is these days but a 1000m hole can cost up to half a mil (maybe less if RC is used with a diamond tail). Just jagging a decent intersection below 500m under the Resource might be the juice the market is waiting for.. after which point whether it is at 40c or 35c becomes irrelevant as we'll be really holding on to our hats..

So, let's wait and see the presentation, use of funds and then judge them. There's nothing we can do in the meantime anyway.