Thanks Gundi, your interpretations are always much apprecited.I...

Thanks Gundi, your interpretations are always much apprecited.

I agree that finding gold everywhere they drill, in quantities that aren't to be sneezed at , is going a long way to prove up the gold camp theory . Not too many places on earth left with 150km+ worth of continuous gold occurances that are yet to be fully tested. Work at Batie just getting started compared to the amount of ground left to test.

Only a matter of time (and $$) until they figure out the plumbing system and where that gold is accumuating in economical qtys'. Gold camps take time to prove up and figure out, and the early pace of AMX has set some unrealistic expectations for PK to manage . Look at sections of the ashanti gold belt , still after decades of discoveries , co's are finding multimillion oz deposits in close proximaty to existing finds. Been sitting there the whole time unnoticed.

I like the point regarding the resource @ 2-3g/t+ cutoff that AMX have. Thats a pretty decent backstop for any valuations, if one were to factor in lower gold prices for a sustained period of time.

Not too many co's out there that have anything above 2g/t in the magnitude that AMX have + being so shallow. In a low POG /high cash cost world , you're not going to have too many projects that can still advance forward. Lots of ores below 2g/t are never going to see the light of day with gold sub $1200/oz . But when you have a highgrade component in the mix , the likes of which AMX have, it makes not only the highgrade stuff profitable , but through blending and a few other techniques, you get to process some lower grade ores too , without blowing out the cash costs. The PFS should highlight this when released i'd say (look at early years cash cost / grades).

Worse case scenario (if POG goes below $1300) , they go with a smaller mine or a shorter mine life and treat the highgrade stuff first. Weather the storm and wait for higher gold prices again, then treat a stockpile of lower grade ores whilst still blending with the highgrade ores and oxides.

I'm still very confident being in gold for the long term . Look at the physical demand that the paper sell off has created around the globe. If the bullion exchanges run dry , imagine what the paper market will do . You're going to see a huge scramble to take delivery , which will tighten demand even more. The miners might have some say in what they sell an ounce of gold for at this point? or hold onto the bullion and really put the squeeze on the physical market.

Gold co's should get together to limit supply/control price , much like the OPEC nations do with oil. The supply squeeze and resultant price spike would make the miners go through the roof.

Currently , the world has forgotten just how rare gold actually is , and I think its about to be firmly reminded. The paper market creates a distorted reality regarding gold. Co's with real gold in the ground (not paper) should and will be rewarded eventually with lofty valuations , not hammered like they have been.

Maybe not this year of the next, but at some point in the near future , we're going to see the biggest rally in gold mining stock we've ever seen imo. Too hard to pick when , so just accumuate while the going is good, is all you can do.