After reading the ANN and watching the market reaction I decided to get out and took only a 1.3c entry (a shame as I expected to get out a lot higher).
The reason for today's reaction (or lack there of) was mainly due to this:
1) The announcement was merely an update on how the company was progressing towards a JORC compliant resource and not the JORC compliant resource itself. Which brings me to my second point...
2) The reason the estimate cannot be considered JORC compliant is because out of the estimate of the 1.207 million Oz Eq (ignoring the cutoff).
87+78+72+65= 302K Oz Au Eq is actually indicated.
The remaining:
302+253+208+142= 905K Oz Au Eq is only inferred.
In summary:
25% of the resource is indicated while 75% is only inferred.
Hence the need for further infill drilling (mentioned in the ANN) which could either increase/reduce the actual indicated JORC resource but will certainly require further capital raising.
At these levels this will mean serious dilution of the share base.
Sorry holders but I am out for good.
Rgds,
Mack
LRC Price at posting:
$1.50 Sentiment: None Disclosure: Not Held
