Well boy, isn't that what ABX trying to do with Bre-X before they discover there is nothing? There is no significance of ABX, my boy, what they "think" there is gold or not is irrelevant. Their decision making is irrelevant, and on the other hand, even if ABX said there is no gold, it does not mean that is true.
The fact that NEM is such a big player in this game is most likely 'cuz ABX is afraid of the Bre-X effect. Unlike AQP, ABX is no longer willing to buy more as they get burned from the experience of Bre-X. ABX has no way of knowing if history will repeat itself. Thus, ARP is a very significance turning point for the entire Canadian mining industry. It was in the news last week, that CBC news annouce ARP found gold in Argentina. Virtually every mining companies is watching this one. If they did find gold at the end, a lot of mining stocks will move back up, take EVR (Everest Mines) for instance, CBC news mentioned 10 days ago that some company found diamond up at the Alberta region, well, that's the kind of region that EVR is digging. But look at their stock, still sitting at 12 cents.
The fact is, almost all mining, precious metal companies stock are undervalue, 'cuz of the Bre-X effect. Thus, it is important that ARP found gold, if at the end, it turns out to be another Bre-X, it will definitely set the entire mining industry back further than what Bre-X has done. |
