Beyond 23/12, a BBX outlook discussion, page-8

I like as many early clues as I can get but caution is always needed.

One takeaway from this for my future gambles: If they are reporting visible gold, ensure that some photographs are of gold distributed along the length of the core - i.e. 3D evidence. Another tip for punters to take elsewhere on vis gold, if they show panned tails - find out the length of core that was sampled and the weight of material crushed and panned. Furthermore, one sample and tail is low confidence, and may not assay up. Conversely multiple samples and tails are worth a punt if you can estimate good grade.


This episode is similar to fellow Brazilian outfit, OGX, who's seemingly well credentialed geos reported intersections "highly mineralised" with "invisible" silver in 12/21 holes. Came back zip, nada. All the while they were in possession of an XRF gun with a lower spot detection limit of 50ppm Ag. Sucked in Canaccord on it for funding. Sucked in me too for a small punt until it was too late. No consequence. The mind boggles. But then I didn't do anything except abuse the crap out of the MD.


Unfortunately, gross incompetency rears its ugly head on the ASX on about a monthly basis (BOA being the next recent shocker to this). Sometimes those who understand beyond the hyperbole can see it coming, other times it is too late and there is no escape route. Neither circumstance makes it acceptable.

The solution is fairly simple, I think. The ASX, ASIC, AIG, AusIMM all contribute to an independent body of experts that reads all announcements for compliance as they are released. Sector by sector experts cost decent money, but the framework should be cost neutral as the individual organisations will have less in-house compliance load themselves and public complaints will be reduced. The independent body identifies any issues, acts to halt trade and makes a recommendation to the appropriate body to follow it up. Anyone found incompetent, misleading, or worse, is banned from public boards and / or stripped of their industry recognition where applicable. All done very publicly. A few would go down and the rest would clean up their acts quick smart.