Just be careful with DELGF. Look at Bre-X. DELGF company officials can put out any hyped press releases to inflate the stock prices.
This has happened with other stocks like SEXI, DNA, and most recently CTN.
I can't believe anyone would think this company will find gold. Anything involving Terry Alexander is a scam. Just ask the AKSEF investors who got burned.
CALGARY, March 20 (Reuter) - It is too early for Vancouver-based Delgratia Mining Corp <DELGF.O> to make claims about the potential size of a Nevada gold deposit it is exploring based on results from four drill holes, a state mining official said on Thursday.
"There's a long way to go before anyone can say with certainty that that's going to become a reality," Russ Fields, adminstrator for the Nevada Division of Minerals, told Reuters in a phone interview from Carson City.
Delgratia shares shed over half their value in Thursday Nasdaq trade as questions arose over the project's value.
The company's stock price fell to 16, down 17-5/8, after more than quadrupling since the beginning of the year. The price drop cut the company's market capitalization by over US$273 million.
Delgratia -- which is associated with ex-Arakis Energy Corp <AKSEF.O> chief executive Terry Alexander -- released results from four widely-spaced drill holes on Wednesday and a company investor relations employee reportedly said they showed what could be a deposit of five million ounces of gold.
"These are widely spaced drill holes -- four drill holes -- it's not enough," Fields said. "Our world-class gold mines in the northern part of the state drill their properties on 200-foot centers. These holes are as far apart as 3,700 feet."
Delgratia chief financial officer Eric Lavarack told Reuters earlier that the employee's claims would be clarified in a news release later on Thursday.
Alexander first made headlines in 1995 when, as head of Arakis, he told investors a financing deal for a 950-mile oil pipeline in Sudan -- arranged with a Saudi prince -- was near.
Arakis shares on Nasdaq soared to about US$26 on mounting investor excitement over the company's chances of bringing a major oil concession on stream.
However, the stock turned volatile as questions arose over the validity of the US$750-million financing. It plummetted to just over US$4 when the deal finally collapsed in the autumn of 1995, an event that sparked several shareholder lawsuits and, eventually, Alexander's departure.
20:33 03-20-97
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