new gold discovery, page-10

I think you need to be careful about making statements like "this is a steal under $5" as many of us were saying the same things all the way down from $6 to $2.20 and it all depends on your outlook and risk tolerance...

It may well be a steal in the long run, but as watso pointed out, I would bank on us seeing more lows (probably not below $2.50, but don't quote me on this!) before we see the real highs begin from early-mid next year. All it takes is a $50 drop in the gold price and people will be running for the hills (and ironically there is gold in them thar hills...) fearful of a greater collapse. Add to that political uncertainty....

However, I think the discovery significantly changes the company outlook - greater upside potential and greater belief in the propects of their tenements. As more drilling is done, assuming it is positive, the case for a further mine will firm up. Additionally, not sure about this, but would the delineation of a significant resource at Chokdee assist the companies de-risking case for attracting finance for the expansion of Chatree?

Overall, this has reduced the downside risk for me and I will be looking to accumulate more if we see the low $3 range again....

Final note - did anyone else think the chairman's comments re. global warming in his address at the AGM were a little bizzare?

http://imagesignal.comsec.com.au/asxdata/20081113/pdf/00902711.pdf