It does not solve the share bloatie problemo sufficiently. I admit it is from a mineralogical, geological, and mining perspective, "most fascinating", but I fail to see what they could do in terms of market support if someone decided to sell 100,000,000 shares at 80 cents. Who has the money to offset that? This is not Tyco Corp where market specialists will throw 20 million in an afternoon to box the shares in between 18 and 19 dollars on a market hiccup.
This is one of the major differences between US and CDN markets in high cap and low cap stocks. There are true stock support people in the NY market. They actually have a large fund to buy stock. In Canada, except for a scant few biggies supported by a few traders at GMP, you are on your bloody own.
Without a demonstrated thin float and unbelievably good discovery news (see aurelian.ca, it makes one very sanguine about being the lone brave soul supporting all that paper. Queenie has enough cert material to pave the Trans Canada a foot deep and have enough left over to build a paper maché bridge to Victoria.
What is truly amazing to me, far from the merits of the Jerritt Canyon which has been amply demonstrated by the kopy kat land holders in the area, yet to come up with new item one of their own, is that fact that Queenie has moved their stock up in the last year, to practically a double. This alone generates a kind of wonder given the paper empire they have built. They are practically bulletin board material. If you asked me if I would finance them, I have to say only from a gold loan basis.
I blanche when it comes to Millstream Mines getting their Potter Mine high grade copper-zinc-cobalt thingie going which has definite 12 million dollar front end cost, and "only" 40 million shares out. A lot of shares coming at the market preventing that one getting out of the basement ..., though I did hear they are getting their house in order.
Gold does look easier than base metal to the market, no matter the price.
EC<:-} |
