Ann: High Gold Grades Continue at Break of Day and Lena, page-8

Not a great trading day for Musgrave nothing but selling all afternoon leaving very little buying interest to support the share price. Looks like a test of 7.0 cents this week. Question is why? Is Musgrave falling down in not talking up the potential of the Lena and Break of Day deposits as Tom Sanders of Breaker Resources does with their Bombora deposit. Are the Lena/BoD and Bombora discoveries all that much different. I am not a geo so I can't tell? Breaker Resources is going gangbusters while Musgrave retreats.

Or is today just Patos clients taking their money off the table, maybe those that entered in last years CR? And should we expect more to come.

It doesn't appear to be institutional selling not that $50,000 worth of shares would not likely be an institutional trade.

Barrick Pacific apparently shifted their holding to HSBC Nominees so are still on the register. ABN AMRO have also repositioned their holding with BNP Paribas. Independence apparently are less interested in gold stocks being primarily an investor in base metal plays and Silver Lake is happy with its current level of holdings, hence the willingness to watch and wait.

But on the more positive side, I am told a couple of small resource funds anted up dollops of $500,000 in the CR and wouldn't have done so unless they were confident Musgrave was firmly on the path to development.

We await the final assay results of the Phase 2 drilling program at Lena /BoD. Sixteen holes left to report on. Then we will have some results in June/July from the 12 to 14 holes on the 12 base metals targets. I don't expect there to be major new discoveries there but we can all live in hope. The VMS targets I understand are all pretty small. The game changer for Musgrave has to be the gold potential.

I understand you have to have nerves of steel to play the speccie junior resource stocks like Musgrave and that the share price will move up and down not always for the right reasons. I know too that we have just had a share deflating CR at 7.5 cents. Nevertheless today's action was a touch disappointing.