Well spotted Matchbox - yes, the Mother Lode asset is worth a...

Well spotted Matchbox - yes, the Mother Lode asset is worth a lot more than the valuation IMO and in the company's opinion.

According to the half year report "The group?s interest is only carried at a cost of US$730,000 in the consolidated balance sheet, which doesn?t reflect its considerable value, and significant proved and probable reserves."

They go on to say that they are restricted by current accounting standards to offer a revaluation. However they believe that if they could show it "on our consolidated statement of financial position we would be reporting a NET TANGIBLE ASSET position at 31 December 2010."

Based on that statement it would be the company's belief that it is worth many multiples of the 730k, perhaps 6 or 7 times as much. With recent interest in Texas oil and gas and the Permian basin in particular they may be right. That in itself could lead to a re-rating here.

Then we just have to sit tight and wait for the new acquisition.

Movement over the last week or so seems to indicate some growing interest here. Slow but steady movement up and some decent option (avdoa) buys. Still under a $4m market cap!