St Barbara - maybe not interested in buying Peel, page-13

Sarg, firstly St Barbara (SBM) has not paid ever increasing prices for the shares they have bought. The last lot they acquired were at the rights issue price of $0.36 / share. The parcel acquired before that was at $0.50 / share.

Of course SBM know the difference between base metals & gold. I never said they didn't.

I don't believe SBM are interested in Peel because they want to branch out into base metal mining. I also don't believe they are interested in the small amounts of gold that Peel have been uncovering along with the Zn, Ag, Pb & Cu.

I do believe that SBM are interested in the greater tenement holding that Peel has in the Cobar basin. SBM knows the Cobar area is highly prospective for gold. That is the reason they are on the Peel register with a 17.9% holding. The Cobar Basin has produced over 3M oz's of gold since 1870. The area currently contains the Peak Hill gold mine. Which produces 90 - 100k oz's a year. That is the sort of scale SBM is interested in.

If Peel were to uncover a major gold find on one of their tenements then i believe only that would spark SBM into action. SBM are going to want a quid pro quo for supporting Peel with money. However I don't believe that would necessarily lead to a bid for the whole company. More likely a proposal to purchase the deposit on its own.

When Bob Vassie, said he does not intend to be a passive investor then i would take that as meaning he is prepared to use his clout to get what he wants. I believe that will only occur if a large gold deposit is found. Which may never happen. Meanwhile SBM can just sit there comfortably knowing they are not going to lose on their investment. That their ass is covered by being one of the dominant shareholders in a small explorer. An explorer who just happens to have over 5000 sq km of tenement in an area that is highly prospective for gold.