The market reamins in a state of fear and irrationality imo. Since when is fear rational? And many investors right now are afraid. Just look at the way shares across the board have been smashed over an extended period of time. We are not talking about a short, sharp correction where prices have quickly bounced back and gone on to new highs.
1. Are we entering a bear market in gold? I hardly think so. You only need go to http://www.jsmineset.com/home.asp to see why the gold bull market has a long way to go. Log onto http://www.bloomberg.com/ and there are so many news items which must ultimately be gold positive it is mind boggling.
2. Does CQT have metallurgical issues? Based on what I've read I wouldn't imagine that to be the case. The recent TMR fiasco with IBR may not have helped sentiment here with some retail investors.
3. Grades. In view of current cost pressures is 1.7 g/t gold, 60 g/t silver and 0.3% copper sufficient for a robust project? I suspect some retail investors are now getting scared off by these grades in view of some well known failures.
4. A share price downtrend since early 2007. This leads many retail investors to assume, "Something must be wrong."
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