Don't write off AXM's Oz tenements just yet. They have large...

Don't write off AXM's Oz tenements just yet. They have large leases in underexplored areas and successful companies such as Falconbridge and Implats are committed to spending millions on these leases.

The company claims that yesterday's spurt was due to-
1) a recommendation from the Inside Trader that this was the stock of the week ( but their weekly recommendations don't always surge 30% on the first morning!)
2) speculation about an announcement regarding 2 overseas projects ( but we were told by the Chairman months ago that a Chinese deal was likely to be firmed up early in 2004)

There is therefore still the possibility that punters are anticipating good results from their current drilling.We know that their consultant geologist (Mark Creasy) built up his stake to over 35% last year so perhaps that was enough to get the buyers interested.

Of course, if they have found something big and there has been a leak, the company would not be admitting that! I'm tipping a positive response to any announcement re. China but will hold on for another week in the hope that the next drilling report will be a good one.