I started buying a year ago based on the koongie potential, plus on the hope that the paleo mining would show some surprises. I've tried to trade small parts of my holding here and there with mixed success, but overall it was mainly accumulation.
The initial koongie drilling late last year was a little dissappointing in that some of the exploration holes came up dry, but the confirmation of the resources was intact so it still had promise. The paleo gold stuff still seemed promising and had potential to do an RMS.
The koongie metallurgy was originally supposed to be completed somewhere around jan 07, then in the march quarterly supposedly worked on in the 'next two quarters' which would have meant completion by end sept, but instead we're now looking at end dec 07 - a year later for metallurgy results.
The metallurgy is also sounding like its more challenging than they thought.
The paleo mining is now complete so we know pretty much what they have from that and so any upside surprises are no longer there.
The eastern bedrock extensions also looked promising but have been a little dissappointing in terms of grade we have now found out this quater, though its a positive that they are there, but they don't sound super confident on its economics.
So a lot of the upside potential is now capped.
I still think koongie has potential, but what speed are they actually going to develop it, and it is definitely dependant on zinc and cu prices. But there's not going to be any surprising news in the near future on this by the sounds of it and it does sound like a risky thing to develop if they go it alone given the price sensitivity.
I also think the Mandilla area has good potential but its back to a punt on the mandilla potential now which puts it back into a spec category on the mandilla side of things.
I'll lay off the downramping - was just answering a question posed earlier in the thread and providing some reasoning.
AAR Price at posting:
0.0¢ Sentiment: None Disclosure: Held
