I am steadfastly hanging on to RXL however right now I am...

I am steadfastly hanging on to RXL however right now I am constantly questioning myself as to whether RXL can move to another level. Of course it can - as Camelwood has a very high hit rate with its drilling, so the more immediate question is what will it take to re-rate the share price at a higher level?

RXL seems to be comfortably holding a $50M market cap however I think the core question is what does the market want to see to give it a bigger valuation?

The problem RXL has is that not every drill hole is a clear winner and a lot of holes are hitting disseminated/mixed mineralisation which at 1.5 to 2% Ni does not thrill the market.

I think what needs to happen is that the massive/high grade zones need to start showing some continuity across strike and down dip. The occasional good hit is not enough IMO.

In it latest announcement RXL mentioned forthcoming drill testing of another conductor which is fine, however it can be a major negative distraction if the first test is a failure.

Continuinng the definition and expansion of Camelwood is the main game in my option.

The one underlying comfort factor for holders is that every hole to date at Camelwood has hit 'mineralisation' (not to be confused with with 'ore') . So in this situation, every hole is adding to the resource inventory.

I think we do need to see a higher ratio of strong hits and clearer definition of the high grade zones for RXL to start regaining some share price traction.

I continue to hold.

gosouth