to the board and especially opaline, page-14

crikey apple... I was impressed with the CTO effort on the skater boy business

A pe of 50 is fantasy for a junior with limited resources. Even 20 is only valid for big caps like LGL and NCM due to their massive resource base.

Unless you have a good understnding of narrow vein miners, there are a few things to watch out for:

"bonanza lodes" usually have very limited tonnages, but at the same can be company transforming in that they can generate a lot of cash very quickly when mined.

assays from narrow nuggety veins have to be put in the context of dilution. If you are mining a 2 meter width and the vein is 30cm, then that is the most important factor

historic head grades must be treated with caution. If you were using hammer and tap your head grade is going to be high. Historic head grades should always be put in the context of historic tonnage and mining technique.

Development costs are always a concern , I think they are $300 an ounce right now at HEG. the admin costs at heg alone are $2million a year and come to $133 an ounce if the production is 15,000 ounces pa


The options are unlikely to be exercised. the run up last week looked more like a momentum trade than real investment flow. Once again there is much hot money in the market and it moves from stock to stock as it wishes.
We seem to be back to the good old days where the release of high grade assays get the juice flowing, if it does sell the rally! Gold stocks are for trading most of the time. This is especially true when they start to get fully valued. At a market cap of $80millionish HEG is fully valued based on current gold prices

Unless HEG gets its head grade above to 20gpt and tonnage to 20,000 tpa it will struggle. the big issue it faces is the fickle nature of narrow vein. Having said that a bonanza lode could go for 5000 tonnes at diluted headgrade over 60 gpt which would return a huge cash flow very quickle, galvanise the markets attention etc

but lady luck needs to be on your side!

which is why I trade this stock. Doesn't me I dont love it. MCO has me in her thrall so that's my long term narrow vein play

Traders provide liquidity in the market and HEG has a nice balance of long term investment flow and shorter term. I'll be buying and selling, usually with a 3 to 6 month time frame for the trade