Like an old playground that nobody wants to play in. That’s the equity market lately.
Unless you have been in Commonwealth Bank (CBA), Telsra (TLS) and/or National Australia Bank (NAB), the market has been disappointing for investors.
However, very recently there has been some light for exploration companies.
That light has been shone by Sirius Resources, a company drilling in the Fraser Range.
The company has Mark Creasy as a Joint Venture partner, who [according to Wikipedia] is a prospector who has received an entry in the Guinness Book of Records as receiving the richest payout as a prospector ever.
Together the Sirius / Creasy JV, has hit a very interesting new nickel province at its Fraser Range project with the first drill hole it had designed to test a large electromagnetic (EM) conductor – one of three EM conductors it has identified at the Eye prospect.
Cross section of the uppermost tip of EM conductor 1 showing new
intersection, approximately 50 metres down dip from discovery hole and
the modelled position of sulphides based on the EM anomaly. Source:
Sirius Resources announcement
The hole hosting the discovery intersection – hit 4 metres at 3.8 per cent nickel and 1.42 per cent copper, strangely enough just where the EM model predicted it would.
The company has named the discovery the Nova deposit.
A subsequently drilled step-out hole intersected 15 metres of similar matrix to massive style sulphide mineralisation some 55 metres up-dip from the discovery hole.
According to Sirius the EM model indicates sulphide mineralisation may continue for a further 200 metres down dip from the discovery hole on this drill section.
The company indicated these intersections to be at the uppermost edge of a large (1,000 long by 300 metre wide) EM anomaly, which it considers to indicate potential for the Nova discovery to be a very large massive nickel-copper sulphide deposit.
“This appears to be a major new nickel-copper discovery, of a new deposit style in an entirely new province,” Sirius Resources managing director Mark Bennett said of the discovery.
“It is very gratifying to start from scratch in a new frontier doing what we do best and make a discovery.”
Since then the market has behaved as if an old playground has been pulled down, and a brand spanking new one has been built in its place.
And it’s got the children (sorry punters) very excited, which has resulted in the share price of the company go from 6c in late July to 72c in early August.
The “ducks nuts” of playgrounds!
Huge volumes and people making money; that’s what the market should be all about, and with Diggers & Dealers around the corner it looks as though people finally have a new swing to swing on.
Hopefully this new province spurs the junior market in to life. That may be a long bow perhaps, but it’s happened before.
There is a bit of North American money in town at the moment, and I wouldn’t be surprised to see some of that heading to the Fraser Range for a looksee.
Diggers will be the place where new fortunes and old will come together. I won’t be able to make it as I am abstaining at present, and Kalgoorlie is no place for the abstainer.
However, I will be swinging on the new swing, but watching from a distance.
This year Diggers should be a good conference, regardless of current equity markets.
At least there is talk of a new massive sulphide base metals province.
That’s better than an old busted-arse swing.