some interesting points...

Well I've spent a bit of time looking at this "Sirius bandwagon jumper" and found there's a little more here than meets the eye.

I'll just list my basic findings in relation to their Nickel/copper work at the Cooperinna block in brief bullet points:

General points:
- Firstly they already considered tenement EL4587 highly prospective for Ni-CU, way before Nova was discovered. In March they started properly surveying the ground (using SkyTEM).
- the company used to be huge and have done some awesome work in the past, not least of which paying a dividend to shareholders a few years ago on the back of a $32m Sinosteel deal.
- as a result of their past work they still own equipment including a diamond drill rig and vacuum rig.
- regarding their nickel copper prospects they have tenements covering almost 10,000sqkm in SA.
- they have support from RIO and Sinosteel as partners on some projects.

Specific to EL4587:
- its a greenfield project.
- Rock similarities to that hosting the SIR and Nebo-Babel find.
- These initial 6 holes were based on a SkyTEM survey done in March and reviewed in June. The company has since done a much larger VTEM survey.
- From the VTEM, 21 new targets now identified, awaiting heritage clearance before drilling. Drilling can start v quickly given they have their own gear.
- 2 assays still pending for hole 12 and 13.
- Hole 12 visuals show "Mafic hosted net-textured and disseminated pyrrhotite mineralisation" and is located a few kms SE of the other targets.
- Hole 13 visuals show "Matrix and breccia sulphides" and is located near holes 7 and 8 where the "modest" results came from.
-

One very interesting point:

Subsequent to identifying these Musgrave drill targets in June 2012, an entitlements issue was announced. I wasn't a holder at the time but looking back, the sentiment from holders indicated that the company had adequate cash, had support from RIO/Sinosteel as JV partners, and the price was trading at a low, so why would they issue shares now? The entitlements issue allowed any majority shareholders (basically the directors!) to increase their shareholding massively. In fact the directors tipped in a cool $500k. Hmmmmmm! So out of the 25m entitlement shares issued, directors actually took up 16m.


So I'm not sure this is just another Sirius bandwagon jumper. They appear to have some serious ground, they are drilling as opposed to zapping rocks and/or reading old reports like a few other SIR wannabees, and directors have skin in the game including a recent half mill. Wouldn't it be a great coincidence for the directors if they made a massive discovery a few months after acquiring 16m shares?! (:

The only thing putting me off, and probably the market on Friday, is the entitlements offer shortfall appears to still be on the table- "MEU style". I'll try and contact the company to see if they'll advise whether this is likely to go ahead. Would be stupid imo to issue the shortfall shares at 3.2c, but I thought the same with MEU! In the financial report they state under the subsequent events note that they are evaluating the shortfall - "Directors are currently evaluating placement of the shortfall in relation to market conditions."

Anyone wanna interpret that? They are cashed up at the mo, and their share price has now risen and should stay high. I'd say "market conditions" are such that issuing shortfall shares at 3.2c would not be in the best interests of the company or all shareholders!

If no shares are issued then this for me is a fair BUY at the current price, but if a heap of 3.2c shares are issued then prob not, UNLESS the directors snap them all up which although would result in dilution at least they would be likely to hold. Seems they have until 28th Oct to decide.

Sentiment: dunno- need to confirm whether the shortfall shares are gonna be issued and who to.