GOT, RRI
Goliath Resources aka GOT trades abnormally, partly to the way its shares have been used as part of pump and dump schemes by third parties, and partly due to the presence of Quinton Hennigh, whose fickle and underinformed followers tend to move in and out of stocks en masse. This is probably why GOT sold off so hard following yesterday's release of more drill results from the Surebet zone of their Golldigger Au/Ag prospect in BC's Golden Triangle. Yes, the results were not great, high grade but narrow, but probably not lousy enough to justify the 20% haircut dealt to GOT's share price yesterday.
I have always had my reservations about GOT's management, so I have been kind of holding my nose hoping the quality of the deposit would overcome that weakness and the crazy trading. Here's an example from yesterday's PR,.
Here's the headline assay
117.21 gpt AuEq (115.00 gpt Au and 28.50 gpt Ag) over 1 meter* within 24.64 gpt AuEq (23.17 gpt Au and 6.32 gpt Ag) over 5.00 meters
But if you joined that first to with 4m with no mineralization, the composite assays would be 117.2 divided by five = 23.45 g/t AuEq. This in turn means the remaining 4 metres of that 5m headline intercept they reported are very low grade.
Classic grade smearing; pretty sleazy if you ask me.
IMO GOT remains a 'hold your nose' hold, where you hope the quality of the deposit more than compensates for weak management the crazy way it trades.
Message 34098238
Today's PR from Riverside Resources aka RRI illustrates how a well-run prospect generator operates, and why they have been able to keep their share count low over the years.
Tajitos is a gold prospect located in Sonora, Mexico. At one point it was JVed out to Centerra, who paid RRI for the privilege of carrying out an exploration programme before eventually dropping the option in the wake of their troubles in Kyrgizstan. But they found enough of interest that today RRI announced they had sold the property to Fresnillo, who operate a mine on an adjoining property. In return RRI received $2.5M plus an NSR on the property.
That how a prospect generator should work. Stake a property or buy it on the cheap, increase its value by exploration, preferably using other companies' money, and then sell it on for a profit.
Look for lot of news next year from RRI, as their cash stash, now up to $8M, should allow them to cut some new deals.
Message 34098260 |
