Roman, Little Joe and others:
Let us not lose sight of the fact that prior to the
discovery of the new zone, the direction of the company was
to become a producer within 1-2 years. Even if this
new zone proves to be smaller than what was anticipated
(even though it remains open as far as we know in all
directions at this time), the stock will maintain a
level of value, and I expect the company will continue
in the direction of becoming a producer, with or without
a major on board.
The reflex selling of the stock seems to be the norm these
days, with significant profits in the junior resource sector being few and far between. In the case of PFN for example,
the stock ran up to $4, and has sold off to $1.30 or so.
This in spite of hitting 13 out of 13 holes, with very
good pgm values.
I personally believe that this recent weakness presents
an excellent opportunity to get in if one has missed out
getting in at low prices. It is unrealistic to expect
that every hole will be a bonanza hole, and some will miss.
That is the nature of the exploration business. In any
event, hole 14 had an average of .05 oz/t over 89 feet,
which is still a decent value.
A larger drill is now in use, and step out holes to the
north-west are being drilled. It will be interesting
to see how far the zone can be carried. Also, geophysics
is part of the plan (may have already been done) and we
will learn more in the near future. The smaller drill and
another larger drill are being worked on and will be in
use also within the next week or so.
IWA will continue to work hard to determine what they
have, and I expect that they will ultimately demonstrate
the value of the new zone. I have held the stock for
over 1 year, and have watched this company survive the
worst bear market in the junior resources in recent memory.
I intend to hold for the long term, as I expect this
company will emerge either as a producer or as an owner
of a substantially greater gold resource than has been
demonstrated to date.
Regards
Dan |
