Well it appears the market was expecting a bigger set of hits...

Well it appears the market was expecting a bigger set of hits than what was published as can be clear seen by the fall in price today. Personally I was hoping for a significant slice of the South prospect to have thicker intersections of coal...

However... Saying that... what they have announced is not insignificant and in fact their new Takatokwane south prospects target (+2bt) is almost bigger that any other current coal player in Botswanna resource sector is important ... If proven up, the total of 6.2 bt of coal is a large amount in anyone's language... and will no doubt stoke the interest of the Chinese and Indians.

Id expect that they might abandon drilling the majority of holes to the west as it appears thin coal in that direction. If it were me I would drill the remaining holes from phase 2 in a tighter formation to the east to produce indicated (and therefore more valuable) resource. Which is what I think the alluded to in the Ann. I would also be negotiating with the folks who hold the ground to the north east.

The shareprice at this stage has broken down out of the recent ascending trend... I expect weakness to continue for a few days before the dust settles and people realise they actually have high probability of 50% more resource than they had before the announcement. This higher resource will drive a higher valuation than the conservative 17c broker valuation... maybe as high as 25c if target is achieved....conservatively

So wait for the hysteria to fade and for the logical thinkers to come back to the table. For the long/mid termers a good opportunity to pick some cheap stock is in the affing for the next few days.

PS: On looking at the Screen it appears a our big buyer from the other day is still alive and well with a buy of 15m+ at 5.1c which is right on the last sale during the after market auction... and did not get pulled late ...So it could have been hit by a big seller late . A real buyer ...it seems