price target next week, page-9

'twas i who metioned the 'nuggety' style of RMS' mineralisation...

so the next drill results become absolutely key in determining whether or not there is a massive ore body with high grade gold, or just 'chunks' of nuggets spread out...

i am not surprised that they have hit such a high grade drill result...

the company has continually hit high gold grades during their mining, so much so that they have even gone down the path of auctioning off the nuggets that they have found from previous mining.

also, from what i understand, the area they are drilling in was the host of the 2nd biggest gold nugget find in the history of gold mining, so, even though we can't identify a resource from what has been announced so far we can delineate that RMS does own ground that has known 'nuggety' mineralisation, which could produce absolutely anything...

This strike of 1.8 kg/t may actually prove to be one of the smaller finds, and it is certainly not out of the question that higher grade strikes are discovered....

In my opinion, the "playing game" on this stock becomes like this:

FOR EXISTING HOLDERS

Take a profit, so that you have covered about 75% of your initial cost back, and let the rest ride as a near free carry trade

FOR NON HOLDERS

Make the call whether or not you are prepared to speculate on about 50% of your capital outlay. Even should further drill finds prove to be less "stunning", I can't see this stock peg back much below 80 cents. So at any price up to about $1.60 is where I would be setting my targets.

Buying up to $1.60 gives you a downside of $0.80.... but the upside could be anywhere from $3.20 to $5.