All, Been a holder for some time (about 18 months), sold a few...

All,

Been a holder for some time (about 18 months), sold a few in the the frenzy to 12 & participated in the 5.5C placement.

I have been buying as much of ZAG as i can - i see a number of features with this one that the market has not picked up on / overlooked. Appreciate your thoughts/ view on what i am seeing.

1. The drill bit continues to deliver- RC is underway at present, so this will be a good test as up to date it's mostly been RAB/ AC which has been throwing out plenty of sniffs. I feel our ground/ some of the sniffs to date are very encouraging & suggest to me that there is potential for a discovery.

2. The Board change - Very important change as it exited the old director that is known to the CEO and brought on a proper Geo. We now have 2 very good Geo's in the group - suggesting to me the company is aware of their prospect & what's required to build a real company.

3. The MD's oppies are at 10. The deal she got was very good for the loan she provided - however must always remember that that loan was being worked through well before DAU ran last year. She must continue to communicate though- so would recommend shareholders continue to write to her & Mal if you are interested in the companies progress.

4. K2- This is an extremely important part of the story that the market has not priced at all. There is a very good chance that VAN will settle with ZAG as there. Even settling at 25% of ZAG's ask (which i dont think they would accept) would represent a cash injection that equates to 35% of the current market cap Management are very determined to chase this value for us - if we get a win here the stock has the potential to re-rate substantially. VAN are trying to forget this JV every existed from what i can see in their quarterly reports.... they just raised capital so from what i see the bigger risk is what happens if we win & they cant actually pay....... Never forget VAN tried to take us out a few years ago and capped the SP for years.

5. Insiders holding- the selling came from the 5.5C placement , not subs.
6. The options are a good play, however no liquidity as of yet.. suggests to me the subs (who hold most of them are not interested in selling).

In my view - this stock has the potential to be worth multiples of where it is just off the outcome of the case with VAN. Continuing to have drilling success (albeit shallow should restore value in time back towards 7-9C... A decent hit or dare i say a discovery hole with the RC and well... who knows then... reminds me a lot of an old stock i used to trade called MGV.