surferstu posts, page-8

A great discussion best had over a couple of beers.

We have facts (4m oz resources comprising long strike lengths of a narrow, steeply dipping orebody). Then there are inferences - not enough ounces in one spot to hang a pit and plant off - lack of a PFS showing a viable pit outline.

WA is littered with long, thin, shallow pits where people have ripped a few ounces out and made good money along with the skimpies 'downstream'. Mostly because there was a plant near by.

All they need is a fault to 'double up' the orebody or splay and we'll get a chunky section big enough to justify starting up and absorbing some of the narrow material along strike. NGF's underutilised mill provides a good opportunity - fully utilise the mill (lower cost per tonne) with otherwise stranded ore.

June Quarterly had $23m in the bank. Comsec is telling me the market cap is around $50m. Market isn't valuing the gold as worth much.

It's a speculative buy. A bit of food for thought. Five years ago gold was a third of where it is today (Kitco) and a 5m wide 3gm seam wouldn't cut it. But a hypothetical extrapolation of the gold price would say this is the equivalent to a 15m wide 3g/t seam at $400/oz (triple the gold price equals triple the thickness at the same grade). That would have had people salivating five years ago. But costs have gone up and the width hasn't tripled - gold price has. So, every other deposit is three times as valuable. So, there are better alternatives. Speaking of alternatives - SLR, AED, PLV and SRX are (IMHO) less risky alternatives worthy of a larger part of your portfolio.

Have a good weekend!

Cheers,

Stu