Only time and drilling results can answer that question! There has been a lot of drilling in the last two years and the resource is slowly growing with an update due this quarter. The thing with porphyry deposits is they are typically low grade, but can be huge. If they aren't huge they're not economical to process as the capital requirements are large to build the processing infrastructure. XAM will eventually go one way or the other, but because of the required scale it will take time to get there. Either Karmagtai will prove to be big enough to tempt the big boys with deep pockets (to fund development), or the money for exploration will dry up without establishing a big enough resource. The current share price reflects the risk of the latter outcome, if new drilling results looks like confirming a 1bn ton resource it is probable it will rerate and you may even see 0.20c again. It's a speculative stock, and that's reflected in the price action!
XAM Price at posting:
2.8¢ Sentiment: Buy Disclosure: Held
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