Yes I am a holder and it looks all quiet on the homefront.But...

Yes I am a holder and it looks all quiet on the homefront.

But there must be some news soon.

I have relooked at recent and old reports in the last few days and believe that this is way undervalued.

No doubt it needs some good news from the current drilling at either Torrens, Penny's Find or Yuinmery.

With $3.5 mill in cash at 30/9/07 and a market cap excl options of about $10 mill this can only go up imo.

Penny's is small but high grade and the in ground value about $45 mill at current gold prices. You would think it would be easy to mine. But clearly the resource needs to increase here. Hopefully it can double in the next 12 months from its small base. One thing in its favour apart from the high grade is that it is in the right location where a lot a good activity is happening at the moment and near good infrastructure.

I would anticipate drilling results to be released on these 3 projects in the next 3 months so in my view now is the time to accumulate at these ridiculously low prices.

I have bought more this week to get my average price down as I first bought in on those initial Penny's Find high grade results.

My view on this stock is that they actually have not done anything wrong since listing (from what I can see anyway) but have either just fallen out of favour or just forgotten about particularly with the activity on stocks like RMS and KAL.

I am looking for much better days ahead. They are still a very young company relative to their listing date and seem to preserve cash quite well which is a very good sign imo.

I would also be interested in others views.

I have followed a number of these smaller gold/copper etc stocks over the last 2 years and see erl as having huge potential to get to the $0.50 plus mark in the next 2 years based on their very small amount of issued shares.

One thing is for sure if they found anything of note they would race up as there are very few issued shares and with the directors holding some of these then there would not be many tradeable out there.

Flipper