the australian

http://www.theaustralian.news.com.au/story/0,25197,23046227-18261,00.html

Chip ahoy

LAST week we used the term "irrational exuberance" to describe the big price run by Haoma Mining after it announced manganese in rock chip samples from the Pilbara. Now Haoma's Gary Morgan has emailed from London to tell us - quite politely, mind - that Pure Speculation was talking through its hat when questioning a leap of faith just on samples.

"What you do not appear to understand is 'good' (he then used "prosecutors" but we think he meant "prospectors") quickly know the likelihood of finding a new mineral deposit very early in the exploration cycle."

And, to expose our negativity for what it is, Morgan cites Fortescue Metals Group as a case where the critics were all wrong.

Then, as if to rub our noses in it, punters waded into Montezuma Mining last week after it reported high-grade manganese in - yes - rock chip samples.

Call us old-fashioned, but we were more interested in the news from OM Holdings, which operates the Bootu Creek manganese mine in the Northern Territory. Having made a $3.3 million loss in the corresponding period last year, OM came in with a record nine-month profit of $36.4 million based on manganese sales. It is expecting to release a new resource figure by the end of March.

And it will be based on more than rock chip samples.

The Australian implies no recommendations regarding any of the stocks mentioned. The author does not own shares in any of the mentioned companies.

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