Hi
@rosey2304,
Another poster asked me to answer the same question on a 'short term' stock tipping thread.
The link is here, but for your convenience I replicate my main points (that is, my
short term points (minus the map image), below):
1) Newcrest (ASX:NCM, mcap of AU$14bn) and NTL are both subject to a
heads of agreement over the Rahu tenement:
2) Last Thursday,
Newcrest was granted an exploration license for Rahu. This, to my knowledge, is the first and only time NCM has bothered to get its own permits - so I assume they think there's something special here. OGC's (formerly Newmont's) massive Waihi mine is 20km down the main highway.
3) NTL has previously explored Rahu and has contractual access arrangements and robust data about the location of gold/silver strikes. NCM has an exploration and farm-in agreement with LNY in the surrounding area (as per map).
4) My view is that the
heads of agreement will be formalised and the terms will be announced, possibly this week.
5) On another front, recent progress by
the company has secured all relevant legal requirements for the Talisman mine (across the highway from Rahu). NTL says
within 6 months they will be in limited bulk sampling production of 20,000 cubic meters of ore (grades of between .5 and 453 grams per tonne!)
6) Amer International (247 on the Fortune 500 list) has been negotiating with NTL to become a ‘potentially substantial investor’ particularly with reference to the Talisman mine.
7) Volumes last week are the highest in nearly a decade with share price yet to reach long term resistance. Price up 250% in a week and about 400% since high volume low (reversal) a couple of weeks ago.
My view is that the market may be getting wise to the company, smart money moving in. Take note of this company, keep it on your radar. I have made several long posts on the NTL forum, discussion welcome.
