Mox seem to have settled in the 70 to 80 cent range. They found nothing commercial in their recent drilling but did find clear indicators that they are in elephant territory. I presume that the sp reflects the possibility of success in follow-up drilling some time in the future.
Gun, on the tenement next door to Mox, also completed its first round drilling a year ago and also found evidence of being in elephant country. So much so that Xstrata offered to spend up to 10 million to buy into follow-up drilling.
This drilling begins in the next few weeks with the targets decided by Xstrata. (Xstrata believe that Gun's most promising hole last time was actually outside the strike zone and that the strike zone consequently is untested.)
Mox did three drills along a strike zone and got better rersults as they moved north west. Gun has the tenement north west of Mox
The Gun sp is 32 cents. The upshot of all this information is that Gun seem to be paying a hefty price for the environmental delays at its Coburn project which is 2000ks away from the impending follow-up drilling.
When the commencement is announced I believe there will be an immediate rerating of the sp as punters get set for a possible elephant.
Worth looking into?
Pagarsi
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