Hi all,Looks like AXY is changing name to Excelsior gold limited...

Hi all,

Looks like AXY is changing name to Excelsior gold limited after the main project within the kalgoolie north project area.

there has been a lot of talk on HC recently that 505,000 oz @ 1.47G/t isn't economic and that the project needs more ounces or higher grade or both. which is a fair comment this is a free world we live in and everyone is entitled to their opinion.

However think about this every gold mine in Aus started at one stage with rock chip samples of gold outcrops some geo stumbled over and decided to put some drill holes into and presto Superpit!

I'm not saying that Excelsior will be the next superpit just trying to illustrate that you've got to start somewhere thats called exploration.

if you read that latest release they are targeting 1.25Moz @ 2.1 -2.3 g/t. previously AXY told us they would deliver 500,000 oz and they delivered, so i'm inclined to believe they will deliver 1.25MOz grading between 2.1 -2.3 g/t.

Once that milestone is complete i would think that 1.25moz @ 2.1 - 2.3g/t is very economic especially if AXY can get a toll treating agreement in place because they won't need to raised debt / equity to build a plant!!

this is just my opinion but i think at a market cap of just over $11million with $7m cash in the bank and 1.25Moz potential, its just too cheap.

looking to the current resource of 505,000oz lets apply a discount on the value of Jorc ounces in ground to $100 an ounce that gives a resource value of $50,500,000 which is 5 times the current market cap!! a no brainer IMO.

As always DYOR

PD