Holders would have hoped that higher grades were encountered in the first round of drilling. The results actually confirmed the presence of a favourable geological setting for nickel and there are other targets. The recent capital raising allows further work to proceed.
My play on this stock is also based on the diamond leases to the north of Kimberley. The recent Falcon work has shown large structures and paleo channels and ELL have a free carry to BFS. The recent price action in KIM particularly the buying by Southern Cross indicates a positive attitude.
A nickel + diamond play for a $8 million stock is a reasonable risk/reward play.
ELL Price at posting:
0.0¢ Sentiment: None Disclosure: Held
