why the surge?, page-3

G'day all,

What fantastic share price action in a mixed gold market and awful broader market context. Clearly this is liquidity driven like all share price moves. Everything I was told when I wrote the report on this company back in late June has come true, with perhaps a slight delay on commissioning.

The upside on this exploration is key IMO. Just a quick quote from the June report:

"We believe that substantial amounts of gold can be defined at this project by NMG in the next 6 ? 24 months and it also seems likely that they will be adding to resources for years to come as replacement of mine depletion. At the main Bibiani pit; extensions into the west wall, enabling the economic deepening of the pit and additionally along strike to the south and north east under Elizabeth are likely to add between 500k and 1M oz Au to the mine plan in the early years of the project.

The strong drill results across the Walsh-Strauss pits may indicate a bonanza however, caution - we have to wait and see. Should these deposits be continuous then NMG may have a 1.2km x 400m pit that could greatly enhance the resource picture, mine plan and project value. The Bibiani main pit is 1.4km long and 400m wide having yielded millions of ounces."

Walsh and Strauss have delivered to date and are shaping up as well as hoped. More work to do yet however it is going well so far.

Now take this into context for the overall project and mine plan which could take on a superior form in future with higher grades and production. Costs would also be contained.

Lab soon, lots of good news and when you see a stock performing like this you have to think things are going well on the ground at the mill and from the drill. You have all done well to be involved in this one congratulations.

The sector still looks very encouraging to me despite the pullback over the past week or so. NMG up 30% since the report - fantastic.

DYOR - not offering any view on share price by year end :-)
Take care CW