the new medusa, page-75

The drop in gold price overnight might spook the short term traders, as presumably they are trading principally on things outside of the fundamentals.

The fundamentals of RED and its Siana gold project have been very clearly spelt out in posts previously, but just reminding of the key points:

The BFS has demonstrated project financial viability at US$800/oz, and at that price Siana is worth 18 cps to RED.

It has got around $22 million in the bank, thus cash backing of 3.3 cps.

Total value AT US$800/oz = 21.3 cps

That EXCLUDES any value for MAPAWA - that value is about to be investigated by a DEEP DRILLING.

RED's current share price is a discount to implied valuation, whereas most shares of RED's status have a premium or reflects underlying implied valuation.

ANY GOLD PRICE ABOVE US$800 IS A BONUS TO RED VALUATION!

Recent Trading Price

Until the beginning of Sept RED had moved up to 8 cents (Prior to US$1,000 being reached) - at that time SOMEONE took out just under 5 million shares at a cost of around $400,000. That was the first time we saw big volume, and it PRECEDED trader activity. It is likely that SOMEONE has more recently been back in the stock, initially at 9 cents - which sparked the flood of traders last week that increased substantially the trading activity for a few days and put RED on the radar screens of other speculative traders/investors - and RED was in an accumulation/consolidation mode yesterday after many small traders seemed to be dropping shares and 1 buyer on the bid seeming to taking up all shares unloaded at 11 cents.

SOMEONE thinks RED is trading at a discount still...