Artemus nuggets are just a stunt, attempting to turn a...

Artemus nuggets are just a stunt, attempting to turn a dissapointing result into something positive. The trap sites they mined by digging it all up with an excavator and spreading it on the ground to metal detect and recover nuggets, appear to be small, at least at this stage. Thats obviously why ARV didnt go ahead with bulk sampling and instead mined the small patches using this rather unconventional method.

While the market may not care about KAIs nuggets, Novos recent aquisision activity tells us two things-

1) Conglomerate near surface shedding nuggets, while found in different areas, are not the usual, and Novos exploration of its vast areas is not turning up the goods...hence the need to access more prospective ground.

2) Mining down dip (underground) is not going to be a feasible option, at least in the forseeable future. Not exactly sure why...layers may be extremely variable in thickness and/or grade.

To be a major player Novo, needs more ground with near surface conglomerate. And KAI s recently announced nuggets confirm they are no longer a maybee player, anyone wanting their ground (or part of it) will have to pay a fair price. The price has gone up!

That rules out Scrapton, who went close to making a major blunder in the announced deal with Marindi (by including a no dilute clause), but thats another story.

KAI can afford to sit tight and see what develops, while continuing with work on the conglomerate. With sufficient cash to continue a modest program, they can afford to wait for an offer that cannot be refused.