Ann: Acquisition of Highly Prospective Pilbara Gold Project, page-111

The retrace to date is on very low volume, typical of a stock that had a few traders jump on board, T2 buyers who spent money they didn't have will today be exiting at a loss or perhaps if they were lucky then break even. The volume over the past few sessions on minimal SP movement points to some new supply having entered as on the last push light volume was able to push it to 0.9c. Based on this my expectation is that the stock from the last 3B which was issued to the vendor of the Red Field tenement formed that supply, if this is the case then we should see a reduction in supply into the next news allowing demand to push back towards the 1c mark.

Looking at the tenement we know that there has been plenty of both hydro thermal quartz reef gold mined over the past century as well as alluvial so my expectations are that a the first field recon trip will bear fruit, any high grade rock chips will likely act as a catalyst. The second likely catalyst will be in the confirmation of the basal conglomerate under the Mount Roe basalt and within the Hardey formation in the north western sector of the tenement. To the north of the tenement there is also a section of Constantine sandstone that outcrops and appears to perfectly fit the description of the the conglomerate that has in other places been gold bearing. The other thing in the north is outcropping Mallina which a few km's north at station peak and Egina is the source of the water melon type gold.

In summary the small volume retrace is somewhat expected and the upcoming catalysts have the ability to incrementally increase value. Lets see what happens over the next few weeks, I'll be keeping my exposure...