No one can dispute that a + 1m oz deposit is sizable especially considering that there is so much more drilling to come.
My two concerns would be that in comparison to Lihir; and operationally that is what it should be measured against as the operational requirements would be similar (i.e. Island locations/ infrastructure requirements/ etc) the grade is much lower (so far) for ROL. For example Lihir's reserve grades at 2.4g/t Au vs. 0.81g/t for ROL...
Secondly the project is in Indonesia.
Judging by the share price post-announcement this was all largely expected or didn't excite the market.
However, IMO, if ROL continue to build up its resource base through the $15m exploration programme it will never get to production as an independent miner. It will be taken over.
Just my opinion.
Cheers John
ROL Price at posting:
$1.33 Sentiment: None Disclosure: Not Held
