This is a good event. Not just land banking but looking to drill.
I've always liked this field:
- Only a poofteenth of the controlling shear zone has been explored. Payne's Find Gold drilled about a 600m strike length out of about 5km or so.
- All historic mines occur in outcropping/subcropping areas. This is where PFG drilled, mostly looking for "director's specials".
- Most of the shear is under cover. Interestingly, alluvial mining has occurred over some of this area, suggesting there is gold shedding from bedrock .
- PFG were besotted by high grade intercepts. Never mind they never went anywhere. When they finally tested the controlling shear, and got not much, the company pretty much collapsed.
Looking at CVS's release, they are pursuing a two pronged attack: drilling at a historic resource. This hopefully leads to a small gold mining operation and some early cash flow. A regional sampling of the as yet untested shear zone. This is centered on bends in the shear - a good place for pressure shadows where gold can drop out.
I'll be watching this one.
For detractors, a few observations:
- the ASX makes the ultimate decision as to whether the announcement is market sensitive or not.
- Statistically, its the 9th or 10th explorer working on old ground that makes the discovery. The fact that its been explored before is a huge positive: you know where NOT to drill! And you start with a big geological database.
- Plenty of other fish in the sea. Waste your time and bag this one, or go off and show us how its done by finding one that makes you filthy rich.
I do agree with rdncoic, however, I'll wait to see if momentum builds up before buying in. SP is creeping up, but not significantly yet. The trick is to jump in before it shoots up. I'm thinking circa 2, 2.5c. If the planned drilling comes in, I think it will get there - but to keep there, the results will have to keep flowing.
