Agreed TheJ.. but Mr Market sometimes votes with his eyes shut!
We are talking 'risk-reward' here. Which is the name of the game with these small exploration stocks.
In this case, the downside risk seems absolutely minimal to me, for the following reasons:
1. The share price literally cannot go any lower than the current offer price of 0.1c
2. The largest shareholder / major financial contributor is the Lodestar Chairman, whom one could assume will continue to help support the company financially, as he has done previously, and who I am sure has no interest in a value-destroying capital reconstruction.
So 0.1c is the very bottom price for LSR. And I for one am happy to buy at the bottom.
Conversely, the upside risk looks very attractive to me.
The upside risk is provided by the forthcoming soil sampling results and next month's innovative drilling programs at Coolgardie West and Ned's Creek, as outlined on Page 1 of the recent Quarterly report.
If any of the Coolgardie West or Ned's Creek drilling hits (more) high-grade gold mineralisation, which given the amount of gold mineralisation in those areas and the nature of the drilling targets, seems quite likely, then Mr Market should suddenly take notice.
Specifically, the really attractive potential upside success comes from:
1. Planned
drilling under one of those
two very large, coherent, high-calibre gold-in-soil anomalies at Coolgardie west2. Planned
drilling into that
big undrilled bullseye magnetic anomaly adjacent to those high-grade DDH and RC gold intersections at Gidgee Flat/Ned's Creek, which sit on a regionally copper-gold mineralised fault system (De Grussa Cu Au mine, Peak Hill Au mine, Thaduna Cu mine)
3. Planned
drilling into the
big ovoid magnetic anomaly, and the bullseye VTEM anomaly adjacent to those high-grade gold intersections at Contessa/Ned's Creek, which again which sit on a regionally copper-gold mineralised fault system (De Grussa Cu Au mine mine, Peak Hill Au, Thaduna Cu mine)
The two figures from the Quarterly clearly that best illustrate these proposed drilling targets are:
Coolgardie West Drilling Targets, ringed in Red:
Ned's Creek Drilling Targets, ringed in Red:
The downside at 0.1c would seem to me be non-existent! It can't go any lower than that.
And the upside for any success at all in any of this drilling, would seem to me to be (how can I put it?), um, likely! It can certainly go higher.
None of which is remotely intended as investment advice to anyone!
Just the enthusiastic ravings of an old gold mining geologist.
Better get back to my day job!
(20min delay)