gold, page-9892

Proctalgia,

I just posted some comments on MGV on another forum but I suspect that post might get moderated for cross-promotion (not that I hold yet) and for being completely off topic so I've copied the text of that post to the bottom of this post.

http://hotcopper.com.au/threads/ben...2892264/page-20?post_id=19074396#.V9QH0KNJntQ

With MGV currently undertaking a 30 hole RC programme at BOD and with reasonably good continuity across both high grade HW and FW veins the prospect has a small sniff of potential IMO with immediate SP impact coming from the drilling program (if successful) whereas ALY is pretty typical of a junior mineral explorer with too many irons in the fire (spread itself to thin) and no clear focus IMO. Having said that ALY has a pretty low market cap and if either of the two JV's it has with NST or IGO pulls something off it could do very well. My thoughts though on the NST and IGO JV's in the Bryah Basin are that they all very aspirational with low probability of success. Given ALY's small cash position (only $1.2 million) I can't see them advancing their other farm-in projects at Lachlan or their 100% owned Karonie project much unless they get very lucky or do a significant capital raising. MGV are more focussed IMO, have more cash to advance their projects and offer more short term bang for your buck IMO opinion. They'll either end up with a go nowhere project at BOD or the beginnings of a potentially developable high grade gold system IMO. The other curious thing about BOD is they describe the veins as hanging wall and foot wall, but they sit in an undifferentiated mafic unit. I'd like to know more about the geology ie what type of mafics they are drilling and are the hanging wall and footwall descriptions referring to a yet undisclosed rock unit (maybe a dolerite?). I suppose if the prospect actually shapes up out of the current drilling we will find out more. I've never looked at ERM but I'll have a look soon. Esh

Cafa,

I remember that company from when it floated??? its tenements in SA (avoided them at that time). Just took another look and there does seem to be potential now and the company couldn't be considered very overvalued based on that potential IMO. The hanging wall vein at BOD has pretty good strike and the foot wall vein seems to have good continuity so far and untested along strike and only tested at limited shallow depth. Also the width of the FW vein appears to be increasing with depth which is the only reason that prospect caught my eye for a potential punt. The company seems to be a bona fide explore so if I was getting into them (which I might) it would be based on a medium term hold on the outcome of the drilling at BOD with expectations of them proving an initial high grade resource of a few hundred thousand ozs and not a P&D play. If for any reason the gold system improves at depth the expectation could go higher. If the drilling fails to excite, well you know where the story goes from there. Eshmun