I have been watching ZGM for about 18 months now, and it has...

I have been watching ZGM for about 18 months now, and it has continued to deliver the goods. It seems that the company is confident enough with the strength of the mineralisation at depth they are willing to push down very deep diamond tails to chase tonnes at depth.

I am not terribly surprised by the lacklustre results of the shareprice. Moly isn't a success story in Australia - just look at Moly Mines as a great way to singe the fingers of investors who dabble in Mo. The Chinese and Americans understand Mo deposits, and in the end, it is a good deposit if you can get the grade above 550ppm.

The key will be whether the company can, in the next few years, capitalise on the oxide zone. This is the kicker for me - a large SX-EW operation producing Mo metal neat from the vats even if it only pays for the pre-strip will fundamentally change this deposit. For a start, if you pay your way through the oxide, you can kiss $150M of pre-strip capital expenditure goodbye and say hello to a lower overall capex figure.

I think that as long as the ZGM management are serious about this, they'll be talking to people and they will be listening and taking notice. The fact the sp got back down to 14c means nothing.