I empathise with what you are saying. I had the same thoughts until I thought more deeply about it. The exploration target contains about 5 times more rock than the forecast for cu containing ore. So whilst you would think there is a fair chance of hitting something the odds are about 5 to 1 .
A bit of relevant trivia. Heads and tails are an even money bet but heads or tails often come up 27 times in a row. Which leads me to believe that on the odds HGO could drill circa 150 holes with out hitting the pay dirt.
A trained geologist would be learning more with every hole and could well hone in on the resource or decide there is nothing there during that journey.
On the subject of disclosure, being a public company director is a painfully boring and onerous job. Keep in mind that boards have a duty of care to ensure they don't mislead the market by overstating the positives but its equally important that they don't overstate negatives.
HGO has certainly been 100% successful in converting all the brownfield exploration targets into resources. Its very likely that will continue until enough holes are drilled that don't find anything to prove conclusively that those known lodes are no longer open along strike or at depth.
Every drill hole hasn't in fact struck pay dirt. Only 3 out of the last four holes reported, that were drilled into apparent extensions of the Nugent target found ore.
In a greenfield target that hasn't had any previous drilling there is no known lodes to target. Four holes that don't find anything aren't price sensitive, they are just the beginning of a getting an understanding of whats really there.
HGO Price at posting:
5.7¢ Sentiment: None Disclosure: Held
