get ready to purrrrrrrrrrrrrr, page-146

once upon a time in the far flung frozen wastelands of Siberia there was a gold mine that had great alluvial sampling. It was a funny name that doesn't translate well but it was something like Sukhoi Log. I had shares in a company called Sovereign or Soviet Resources (SOV) and they did the exploration. It was a MASSIVE deposit and the alluvial sampling suggested a resource in excess of 2m OZ but it was in a far flung frozen wasteland of a politically unstable country (Russia/USSR in the early to mid 1990's).

I like that this company is in the USA and near the infrastructure of a town/city. That means things like electricity and roads are easier to find than in Siberia.. Actually come to think of it I had shares in a company that re-mined tailings and creek beds around Charters Towers here in Old. They did ok but got caught up in a land claim or maybe they just ran out of money? That was in the 1990's so its a bit of gap in my memory. Those were the days.. trading commodity derivatives from a unit on Hastings Street Noosa after this crazy thing called the internet popped up... And then there was that Egyptian gold miner, was it Pharaoh Gold? Dunno.. but it mined alluvial gold left over from Ancient Egyptian gold mines on the coast of the Red Sea, they did well from memory. Anvil was a great one that started off with alluvial mining and just went DEEP. They were in somewhere quite unstable like Zaire or Zambia maybe, not sure.. defo wasn't Narnia. Anvil went really well, not as well as Aquarius (AQS) but that was platinum not gold and only went from 2-3c to $8.65, not many do that. Burdekin Resources and Dome were other alluvials that went ok but ultimately didn't do much.

So is there a point to this self indulgent reflection upon gold specs of the 1990s.... yes, yes there is a point. Alluvial deposits often result in profitable little mines that do ok however the long term future is rarely if ever very bright. Most, from my limited experience, end up chasing potential deposits that never quite eventuate (they are miners after all..) and burn the profit up in drilling and equipment. If these guys can source some cheap equipment then theres a great chance that we will see a tidy return. I'm thinking that a MC of $50m would be the top end of that realm, so 10c-12c? if they hit something good we might see a spike to 5c maybe up to 7c with the way people go a bit nuts these days but then PUR will probably get all proud and chest beating and decide to embark on a big drill fiesta rather than just whack out a profit. Mt Leyshon gave up drilling in the mid 1990's or so and just paid out dividends until they ran out of gold. Rhodes resources found heaps of alluvial gold in Romania and then accidentally poisoned the Danube... doesn't always end well being near civilisation with lots of Cyanide and drunk Aussies.

just my thoughts, probably missed a few facts in there but you get the picture.