pound pound pounding away at 10 cents ..., page-62

you completely miss my point woteva.

My point re the JORC is the level of confidence attributed to inferred status. I can think of 3 examples in the last decade where JORC resources in narrow reef enviroments were wrong Two were indicated resources, . One resulted in the collapse of the company. BDG didnt fold, they had the good fortune to raise a monster amount of cash prior to share price implosion.

the JORC is INFERRED.


"An �Inferred Mineral Resource� is that part of a Mineral
Resource for which tonnage, grade and mineral content
can be estimated with a low level of confidence. It is
inferred from geological evidence and assumed but not verified geological and/or grade continuity. It is based
on information gathered through appropriate
techniques from locations such as outcrops, trenches,
pits, workings and drill holes which may be limited or
of uncertain quality and reliability.

key words mate:

low confidence, uncertain quality and reliability

Thus mate one "risk adjusts" Each investor depending on bullish or bearish view decides on the level of confidence they have in the inferred estimates.

ESPECIALLY when , according to historic reports , it was considered one of the most difficult in the world to mine

and since gold mining is one of the riskiest businesses around, well you get cautious about certain things. Right woteva. Gold stock investing 101.

The real money in gold stocks is made not by buying a golden dog on the way down because you think its cheap

That rarely works.

the real money is made from Exploration Success. thats much tougher to pick.

well these guys have already found their treasure trove, so best to invest with the guys who havent found it, but you think they will.

So woteva is your wonderful goldmine payable at AUS1200?

Well mate at 5,000 to 7,500 ounces per quarter its bleeding cash

At 10,000 ounces per quarter its finally breathing, its payable. They aint there yet. How many more bits of paper to be issued before they arrive at their destiny, if their destiny is to be a success. Sure we will crack a billion. Whether CTO realise the hyperinflation of the AXM and TAM share registers remains to be seen

So you suggest a punter places his bet on a stock:

(1) which has never delivered on promises
(2) which has less than a million bucks left
(3) at current production levels is BLEEDING CASH
(4) had circa $3million in trade payables at 30 June 09
(5) is in a bear trend
(6)is working difficult reefs
(7) is bulk mining narrow reef when everyone else in Australia tried that , failed ( Norseman, Daisy Milano, the nickel miners of Kambalda)and got the airlegs back out