My thoughts are the Metals X fundementals are good but carries risk because of it's mines that are coming online. NST is a market darling and currently it's the goose that lays the golden egg.
I think the market has attributed that NST will win the bid and all of a sudden this amazing news has shot the price up even when Gold is down. I think market has decided that NST is going to be the second most dominant player in the gold. Now news is buzzing that this whole new area is unchattered and could a bonanza!
----- http://www.theaustralian.com.au/bus...modities-outlook/story-fnciihm9-1227263764686 Tanami’s promise
STOCKBROKER Argonaut, in following the battle between Metals X (MLX) andNorthern Star Resources (NST) to basically take over operating the Central Tanami gold project owned by Tanami Gold (TAM), has produced an overview of the Tanami region in the Northern Territory, 600km northwest of Alice Springs and spilling over into Western Australia. So far 8 million ounces of gold has been produced there, but Argonaut sees it as one of the most prospective gold provinces of the North Australian Craton. Despite the prospectivity of the region, the note says the region has been poorly explored due to land access problems, 95 per cent of the rock being under deep cover (up to 100m) and deep weathering.
“The Tanami region remains one of the final frontiers in Australia where the discovery of shallow, multi-million-ounce gold deposits is still possible,’’ says Argonaut.
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Market is over punishing Metals X for the loss, management for being weak and allowing this to happen considering it nearly happened once before and that it may end up paying overs to try and get it back. MLX is in a hard place, does it pay overs to add to it's reserves and miss out on the diminishing opportunity and loose out to being competition to NST or increase it's risk profile and burn some cash that it may not payoff.
Maybe it's time to gear up?!!!!!!
I am very long term bullish on Metals X cos it's diversified with no debt.
MLX Price at posting:
$1.08 Sentiment: Buy Disclosure: Held
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