Miachael,
I agree with your take on the situation. I feel that the gold is present
at Busang (albeit < 100 mil.) and a gold mine will be constucted. The
scenario I subscribe to is that the latest Bre-X assays are not
representative and have likely been tampered with allowing Bre-X's
whole deposit to be discredited. Regardless of the motives involved
in these crimes, I think the bottom line is Bre-X's share price will
go back up after the Strathcona's due diligence report is released.
The fact that this whole fiasco has rocked the VSE and has decreased
the share prices of companies, totally unrelated to Indonesia is over
reactive and irrational. No doubt smaller juniors will now have
trouble obtaining financing for future exploration, but in general and
like some people have already stated,well financed and managed juniors
will weather this storm and a year or so from now, we who bought them
near these current prices will be glad we did. IMHO, over time, the
return on these types of investments, the short term memories' of
investors, the growth of emerging economies and countries, and the
rising demand for gold etc., will help to repair the damage of this
incredible event. Long term, the fundamentals haven't changed and
I would think that the contarians would be scooping up the bargains
over the following weeks, while the selling continues and the
bearishness to investing on the VSE remains high.
Regards,
RonS |
