I suggested you check out the interesting small discussion on...

I suggested you check out the interesting small discussion on another aussie share forum. Someone there did do their own research back in early Nov. This stock is actually quite interesting and I am interested how it will pan out longer term than day trading. I have included the early summary but it is best to check out all the other comments made after announcement etc.

To quote from 1 of Bushman's post dated 6th Nov:

"What caught my eye about this company is that the share price has moved 20% over the last 2 days from .9c to 1.1c.

An investigation into the company reveals the following:
1. First listed in 1999; delisted 2006.
2. Capital raising for 250m shares early 2007 raised $1.5m to invest in 'tourism, pharmaceuticals and media'. Raising done through Veritas.
3. Ann May 2007 ann that company has appointed Mining Assets P/L to search for uranium, copper & gold opportunities.

Since then, company announced that it has entered into an option/purchase agreement for 100% right to the Lionel Diggings Gold prospect near Ravenswod in Qld. Deposit is described as 'open pittable high grade gold like other major epitermal and porphyry/breccia related gold deposits in Charters Towers region ie Pajingo, Mt Leyshon & Ravenswood'. Gold was discovered in 1890s for a nominal return but, to parapharse the ann, no modern exploration techniques have been applied to the deposit ie the property remains undrilled to date.

A bit of further searching reveals the following about the mines listed:
1. Pajingo - Newmon mining, 450,000 oz reserve
2. Mt Leyshon - Newcrest
3. Ravenswood - Resolute, 1m oz reserve.
So these are big deposits.

A bit of digging on Lionel Digging does not reveal much but the other site has some posters quoting a report by a C.J Robinson quoting a theoretical large reserve. I will not post the resource as I could not find the report.

Board is made up of non mining directors - media, finance, marketing and pharaceuticals - hence the need to appoint Mining Assets.

Investment Summary:
1. Extremely speculative gold play in prospective gold mining area.
2. Mkt cap $4.1m less cash & investments = $2.94m.
3. Cash $979k to drill Lionel Diggings - drilling to start now.
4. Non mining directors.
5. Not sure of the companies $180k investment is in as these are not listed in any of the announcements.
6. Director bought 950k shares 31/10/2007.
7. Low cash balance means that future capital raising will be inevitable. However, given that Newmont, Newcrest and Resolute all have operations in the area, there is the potential that they would purchase any economic deposits if found.

Interesting prospect that I will be keeping this on my watchlist. Very speculative and full of risk off course. Would be interested in other peoples views on Lionel Diggings and if anyone can lay their hands on the CJ Robinson report. At the very least, might suit traders as it has seen some big swings in the share price and has a lot of shares on issues. As always, DYOR".

I do not hold at present (bought and sold in the day and didn't make much, but wanted to use it as a learning exercise). However, once the dust settles I will certainly be doing my own research.

Good luck to all that hold.