That makes the assumption everyone is a "wannabe daytrader"! Believe it or not some people actually buy a stock as an investment!<ggg> All pennies can be traded around their base level especially in light of "no news".
Update
Rocks property under normal conditions would demand a minimum of a $60,000,000 market capitalization even before drilling. Copper prices are showing a significant trend to move higher over the last few weeks. LME reserves are starting to drop and the result will be an appreciation in copper prices over the next 6 months. This is being driven by the Asian countries that are showing early stages of recovery, particularily Korea, Malaysia Singapore and to a lessor extent Japan.
As we enter the 2nd quarter 2000 IMHO the rebound of base metal prices will be in full swing. Projections of $1.00US per pound and higher are considered achievable at this point. Rock is in the envious position of having an extremely prospective property in a base metal turnaround environment.
Rock has turned their site into one of the first "multilinqual websites" for a junior minor. We are attracting capital out of Germany/Europe and Korea/Asia on a regular basis. One of the most interested parties in the Coiron property is a Korean mining company that has signed a confidentiality agreement with Rock. Coincidentally one of the largest Rock shareholders is Korean. Asians/Europeans appreciate the massiveness of this anomaly and are supporting the project.
As we gear up for the drill program you likely will see a continuing rise in this stock to a pre-drill level of .40c-48c. For two reasons;
1) The people that are holding the shares are presently not interested in parting with them, so we will see a choke of supply once we get past .33c
2) If we get a large intersection of AU/Cu then speculation as to the size of the deposit will esculate exponentially. Very few deposits in Chile have such a large anomaly. Therefore, if the drills come back with reasonable copper & Au interesects, people will be able to "punch the calculators" and start speculating on the tonnage. This will create an immediate "dryup of shares" and I would speculate $1.80-$2.10 would then follow.
As we reinforce the first drill holes with further drilling speculation will begin to turn into reality and we should move from there. During the "dry period" this summer most people on these threads took the opportunity to bolster their holdings at 15c and will likely take some profits at .30c-.33c This is why their will be resistance at that level.
Just a note.....I will not be taking profits at the .30-33c level. I bought into this project ( I rarely buy pennies, I have held or owned only 2 in the last 3 years) with the idea of boom or bust. Our downside will never be lower than .15c (IMHO) no matter what happens to the property because of the "BC thing" so most of us are isolated from loss of capital.
In the meantime here are my predictions based on reasonable expectations for this property.
End January 40-48c
Millenium Drill program success
After first set of drill results assuming good to great intersects
$1.80-$2.10
After completion of 20 hole drill program with good intersects in the majority of holes
$3.00-$3.60
As analysis of the results and the drill hole placement will then start analysts from brokerages to map out tonnage more accurately and they will start "following RKR". As a result brokerages will produce reports that will attract larger shareprices.
Millenium Drill program failure
For every coin there is an opposite side. If we hit uneconomical intersects than the stock will start easing back from whence it came. However, for it to do that a number of the 'sections" of this property would have to prove up to be "all duds". That is illogical at this point for a number of good reasons.
1) The fault that Coiron lies on, is a continuation of the fault that presently has two of the larger Cu discoveries within 30km's.
2) The geological indicators, although different from the other two deposits lend to a Gold/Copper porphry as opposed to a Copper Porphry. This is more than a "subtle difference"! The visible indicators on this property strewn from one end to the other support Silltoes model of a "Gold-copper Porphry" 80% of the catagories. Reasonable expectations of a "deposit" based on Silltoes model can be as low as 50% of the categoreies...we "far exceed that"!
3) The IP supported the visible showings on the property. That is to say, through a bit of reverse engineering from the "visibles", certain assumptions as to size and placement of the deposit were made prior to the IP. The IP when completed supported those assumptions.
So assuming all of this amounts to one "huge hill of beans" and we have an uneconomical deposit, then we will be back to .15c with a lawsuit pending in BC. Any settlement above $10million will result in an appreciation in stock prie that will exceed present levels......Therefore downside in the longterm at these prices are "zero" assuming a favourable settlement(IMHO).
L8tr.
the Chief |
