NicThe market is obviously pricing in good news ahead, as long...

Nic

The market is obviously pricing in good news ahead, as long as the drilling keeps on delivering things will hold up, if drilling dosnt deliver we know the obvious outcome.

The big move from 20c is now clear that smart money bought in based on the first drill hole and joined this with the size of conductor 1 plus 2 and 3. Since the discovery SIR has continued to deliver above expectations, they delivered a larger conductor from down hole survey, they doscovered conductor 4 and the most recent has been the recent zones growing at depth, all of these factors have caused the market to price in a much bigger discovery.

Looking forward there is still several price movers that can rock the price north, IMO the next hole below the recent 36m zone could be a blow out in terms of width if it keeps the current trajectory from the hole above(15m zone).

The next hole below could either be +15m from the 36m zone giving a total of 51m with a waste rockwall in the middle of around 9m wide giving around 42m of mineralisation or it could be plus 36m giving a 72m zone with a possible 12m - 18m of waste rockwall giving a possible 54m - 60m zone of mineralisation.

Then again its entirely possible that the zone again pinches inward and closes up but from the companies comments from the start they have always stated that its opening up at depth.

If senario 1 or 2 play out and mineralisation opens up significantly with plenty of massive sulphides the market is going to give a new rerating.

The other possible big price mover is the downhole EM survey thats in progress. This is to test depth of conductor 1 which was open and also could locate other conductors which IMO is highly likely from the 20m zone that was hit while drilling the hole for the survey.

The most important factor that the market cant stand is the ability to fund future exploration and this has been put to bed with the recent raising, also since then many options have been exercised which will now have SIR well above $10m in cash possibly close to $12m with a rough guess.

As long as the market dosnt fall over SIR should hold the gains she has made....