small cap exploration company investing reward

Finally some rewards coming back into these small cap, successful exploration companies......not since pre GST have we seen real excitement in this micro cap mining exploration sector.

A real sweet spot period....and time for investors to get stuck into research, in my view.

Exploration success being met by big exploration news driven, share price gap ups....100% in at least 4 stocks the last few weeks.

Not only are they gapping - but share prices are continuing to move up or consolidate, at higher levels, for those particular companies.

Reason may well be due to depressed stock prices - not matched by base metals and China demand, again close to all time highs. It really is time to work....or maybe miss those big, big gaps.

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Having said all that....Malagasy already has had a big share price run.....still sits though at a fully diluted 118m shares (includes 9m at 20c options)....so a cap of $29.5m.

More you read of the company, really its quite intersting.

They own a commercial building with private tennants,at Saint Denis, three drilling rigs, assay lab, listed on Berlin stock exchange and substancial annual royalties from other mining operations....up to 20 staff. Balance sheet asset backing over $10m - unusual for an exploration type company.

Certainly focus though, is firmly on their current drilling programme at Ni-Cu AMPANIHY....

- and in particular (my view) the copper prospect in Oct at VOHIBORY:

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"The Company has already identified a priorty 3km zone around the targets VC-10 and VC-10 which is considered to be highly prospective for such a site. This lies within a broader 8km semi-contiguous belt of copper/ silver where previous sampling has returned results of 2% to 28% copper..."
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In fact on page 15 of Sept Annual Report, there is a great photo of copper gossan from Vohibory which returned 39% Cu ....(somebody more motivated than me, would sneak that particular photo over into the AVB thread but I can't be bothered.)
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Just one last point......this stock can be one of those big gapping situation again....in my view.

Again, they are drilling now at AMPANIHY....VOHIBORY copper follows in a week or so.

They have access to their own lab...called Intertek Genalysis, in the circumstance more than a week after completion of the initial drill, this statement from the company Friday, may prove to be highly significant:

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This project appears to contain a large mafic-ultramafic system with the potential to host significant nickel-copper-PGE deposits"