Sorry guys, repost of my summary for short term traders thread... nothing new here, just a summary of what's gone before because I believe the timing is right.
WAF are due to deliver a revised DFS by end of this Q. Having been a steadfast holder, only adding parcels for 3 years I've watched it closely.
There have been myriad miniscule trades ( 20 - 70 share trades every couple minutes) in WAF last 2 days, which is remarkably uncharacteristic for this stock,the action has been almost exclusively legit parcel buy and sells for two and a half years.
Market depth and daily trading has not been this bot-run for years. Today (25th May); in conjunction with pre-open $2 million sell placed and pulled before trading commenced (who has $2 mill dollars worth of shares for shenanigans like that?), a $50 open sell 10 p.c. below yesterdays climbing close was placed to open the SP below the legit sell listings.
WAF has increased insto penetration in last months; and seems they are getting active now. The question is why? I won't speculate here on that component of ASX wizardry.
However, SP is starting to climb on volume, and has a gap between WAF price and Gold Price that WAF dropped a few weeks back. So I'm suggesting the gap will close AND speculation on the coming DFS and Gold Price following Trump's/Crypto coins' ordinary week, has potential to create a perfect storm.
Fundamental Research:
1) To analyse the key factor (Sanbrado tenement, Tanlouka, Burkina Faso: Definitive Feasibility Study), peruse the pre-DFS drill/resource results before Feb 2017.
2) ... then the last DFS from Feb 2017, particularly analysis of why it is a misrepresentation of best mining style and strip ratios for upper half of the current reserve. (there is some analysis by HC posters from Feb 2017, and some comments by management in recent Anns that support the earlier analysis by HC posters)
3) ... then the added reserves since Feb 2017 (the underground component of the mine) with expected "significant" (Chairman's word) improvements accounting for better mining techniques for upper half (greatly reduced strip ratio) and value of the underground reserve (most basic form of cheap-a gravity fed stoping is relevant to geology) will be added in upcoming DFS which defines more than doubled reserves at cheaper mining costs AND faster cash flow. (These points have been expressed prior to DFS in last few management statements, the DFS will provide a valuation for these statements)
3) ... cheaper processing costs due to further analysis of geology of gold bearing ore
4) ... then factor extra drilling to be conducted below the currently undefined reserve at Tanlouka. It is currently bottomless and continuing downward with good grades AND a likelihood that 2 main strikes will be meeting each other at depth, and that the main strike also shows signs of continuing laterally (last Q report).
5 ).... then small spec factor other exploration tenements that are awaiting further development that have already demonstrated good initial drill analyses (Mankarga which wasn't viable alone but may become so now)
6) ... and nearby tenements 30 km identified by mg't as reday to drill.... and encouraging recent CR terms for initial development of Tanlouka mines. There's a lot to be happy about. Though it's still SPECULATIVE.
The above sounds a bit rampy, but research it and it's all fact based speculation. The mine is in Burkina Faso, in the central south and in proximity to other big gold producers (B2E) so small sovereign risk comparatively to other African plays like Mali or DRC.
WAF Price at posting:
35.0¢ Sentiment: Buy Disclosure: Held
(20min delay)
