i think they were initially conservative..., page-113

Refer below to Sirius’s trading history following their announcement of a $7.6m placement on 14 August 2012. The share price went only one way and that was UP. I suspect the same will happen to Rox. They announced MASSIVE SULPHIDES at their Camelwood prospect in Fisher East for the first time. I can’t recall a share going down on such a significant announcement. Grade is quite often a key factor to an economic and sizeable deposit. Rox has hit the jackpot on every hole so far (8 out 8), including 7 RC and 1 DD hole.

FACTS:

As can be seen from Sirius’s share price performance that the exercise of options or placements can have a temporary impact on the share price, however the share price recovers quite quick. There was a retrace to $0.915 on 21 August 2012 (it appears that there must have been some scared traders who suspected that the placement would diminish their share value and sold to hedge their bets); however the share price recovered very quickly to close at $1.035. In fact on 22 August 2012 (date of entering securities), Sirius rocketed up to close at $1.21. This tells me that Monday’s share price performance should be quite good. The retrace to $0.082 had occurred on close of trade last Friday from traders who wanted to lock in a profit or those who expect a lower price on Monday. I suspect an overall rebound to occur on Monday based on the Sirius story.

Both Sirius and Rox had extremely high volumes traded on the key date (Date of Entering Securities per the Appendix 3B announcements). They were well over the amount of the placement shares, therefore sophisticated investors had the opportunity to dump shares if they opted to.

If any, there may be a very minor retrace in the share price on Monday or Tuesday with more profit takers seizing a return from the 15 Feb landmark announcement (I suspect picking up shares in the low 7 cent range will be very difficult). However, another positive announcement (whether it is more fresh new MASSIVE sulphides or extensional finds) would set this flying north again. It should reach new highs of over 10 cents very soon.

Remember we still have at least 20m of nickel sulphide assays due in the coming weeks with more progress updates on the diamond drilling holes.

Unreported assays to date:
MFEC006 – 3m of strongly disseminated sulphides
MFEC007 – 3m of strongly disseminated (including some semi-massive) sulphides and 8m of moderate-strong disseminated sulphides
MFED001 – 3.1m of MASSIVE to semi-massive sulphides and 2.9m of strongly disseminated sulphides

GLTA. Please supplement with your own research.