Yep - here we go, totally predictable: the inevitable press...

Yep - here we go, totally predictable: the inevitable press release when the share price tanks; lets update ZAG shareholders of our ‘wonderful’ progress on our legal case with VAN in UPPER CASE of course.

So good luck to all ZAG shareholders; it’s interesting to view and summarise all of ZAG’s PRICE SENSITIVE UPPER-CASE releases and HC rampers to date:

+ A JORC of 12,000oz of INFERRED resource being labelled by directors as a “commercially viable JORC resource”!!!

+ Soil samples <90 ppb

+ 1 localised occurrence of a gold intersection

+ Vested interest implying ZAG is the next NST

+ Huge CR and free carry shares issued to Directors (again)

+ in addition to the above millions of free carry shares issued to one Director for providing a $300K loan agreement for legal purposes!

+A noted Independent Expert considers that ‘the issue of Securities pursuant to this Loan Agreement are not fair and not reasonable to the non-associated Shareholders of the Company’. Furthermore, the Director IMO gets a better return if the company fails in its lawsuit and cannot replay the loan as the lender (the Director) gets first grab of the assets and issued capital of ZAG.

+ The expense and folly IMO of a bogus lawsuit against ZAG’s previous single largest shareholder (VAN) – always makes UPPER CASE headlines even if there is no substance to report.

+ Excessive ramping by newcomers on HC

+ More soil samples <70 ppb.….

+ More soil samples <45ppb

+ Malcolm Carson a Director of ZAG noted as the “Competent Person” on the ZAG’s ASX releases – IMO kinda like the fox looking after the hen house!

+ Offer of up to 200,000 New Options in the capital of the Company at an issue price of $0.005 per New Option to raise up to $1,000 (before expenses) ????

= what could possibly go wrong!?

A lot to mention so let’s just start with soil samples: Many investors have gotten burnt in the past (yours truly included) by getting too excited by soil and rock chip samples. This is why ASX made sure ZAG responded to further questions regarding soil sampling to finally get to the response of “Auger samples are a single point soil geochemical sample (2m deep) and do not generate significant intersections. There is no known mineralisation at this early first pass reconnaissance stage. The assay results cannot be used in any resource calculation.”

And here is why:

Indicative Scale: 25 ppb = 0.025 g/t: 500 ppb = 0.50 g/t: 5,730 ppb =5.73 g/t gold

Expert opinions state that Gold Soil Anomalies are not to be relied upon without extensive drilling and are only deemed to be potentially encouraging indicators when defined within the range of values between 10 ppb (0.01 g/t) to 50 ppb (0.05 g/t) and then only over extensive/consistent sampling areas followed by intensive drilling. ASX: MOH is a good example of a run up in SP on good soil anomalies only to come down several months later to preannouncement levels. For successful gold soil anomalies, which rated high 100+ppb levels (with 1,000’s of auger holes sampled not just 364) read ASX: CDV produced a real resource but only after confirmation of extensive drilling results (and $20 million+ $$ spent over a 4-year period)

Now add into the mix the abundance of hyperbolic posts over the last 12 months on the ZAG HC thread like:

“Pathway to $50-$80mill market cap by October (2020):
1) settle this case for $20mill cash
2) Substantial discovery at Ziulukia
3) Positive update at Goonagarie
4) continued exploration opportunities outlined
5) continued prudent management and low AF director fees and staff costs
6) Gold price continues at record prices as the world crumbles ….
This will be 18c-30c by October (2020) with not a CR in sight”.

“Imagine the market cap with success versus VAN + 2 mines at Browns + mines at Goonagarie ? ZAG $100mill MC” (by 2020)

“VAN continue to sell so surely must be absolute geniuses and 100% must know that ZAG are drilling 500+ holes in the ground and empty dusty red soil is all that is down there...” (Nov. 2020) ; Well at least someone got that post right ..VAN are ‘absolute geniuses’ !… thanks to the ZAG rhetoric and pump VAN (by selling between 6 -10 cents) have just been gifted a big litigation war chest for the next 3 years!

“I like that they have cleaned house a fair bit in the last 12 months and got rid of their doggy directors, so allot of upside here.” It’s been the same directors for the last six years!!

Regardless sincerely good luck to all ZAG long term holders I hope you do well.

Now whatever happened to that $500k loan to Aurigin Foods??