Yeah, I agree El Capo, I would not expect it to go much below...

Yeah, I agree El Capo, I would not expect it to go much below 27.5 cents (unless there is a market melt down - which is not out of the question just yet).

I expect anyone buying from 28 cents to 30 cents will be doing well in the medium term.

Gold will hold up, the mine will be built (if not for any other reason than the government of Eritrea wanting to make a profit on their US$32 million investment).

With the government as joint owners there will obviously not be a problem with permits (provided the boys grease the right palms, and stay in the good books with the Eritrean dictator's powerful elite - which can be a tricky game. The dictator needs a good deal of money to stay in power, because he has to pay off the military, he also needs to stash some away for himself and his family in a tax free overseas banking haven, or gold vault, so you have to provide enough gold for both of these targets.).

Put it this way, I would not argue with the men in power in Eritrea, they live for fighting wars, especially with Ethiopia, but from reading the recent rhetoric by the Minister for Mines, they are none too fond of America either. It does not take much to tip these guys over the edge, and they are not averse to using religion as a false cause to justify their actions.

Still, I admire Chalice for getting this far, and to actually push on and produce lots of high grade gold at a low cash cost, will be a huge effort, so good on them. I am sure they are politically savee by now, and I expect them to be successful.

I think Chalice can push back above 40 cents in the next 6 months, they have some very promising exploration targets, and they have appointed a senior mining engineer to oversea the Eritrean gold mine construction.

Interesting times ahead, but not one for the faint hearted.

Gw