Worth reding

An article in today's Australian is worth a read. Tim Treadgold, a long time resources writer, writes of the Canadian video that has sparked the recent interest in the Pilbara.

His opening couple of paragraphs say:

"A picture might be worth a thousand words, but on the stockmarkets of Australia and Canada it can be argued that a video is worth a billion dollars.
"That value roughly, is what's been created by a gold rush in the Pilbara region of W.A., a place better known for its iron ore than its gold."

He goes on to mention some of the stocks involves and of the drilling techniques that will be undertaken to assess the projects.

His concluding paras. are:

"The next six to 12 months re critical for the Pilbara gold hunt. It is a search attracting speculators from around the world. That's thanks largely to Novo's video, which is certainly not guaranteed to lead to a major mine development. Here's what we know so far:

"There is nothing new about gold nuggets being collected by prospectors in the Pilbara. It's been happening there for more than 100 years.

"The genesis of the nuggets being 'harvested' by Novo has not been established and proving how they came to be in the conglomerate is crucial to knowing whether they will be found in other parts of the Pilbara.

"Canadian explorers have a reputation for extreme optimism that sometimes proves correct (such as the redevelopment of Fosterville), but can also prove misplaced.

"For speculators, the Pilbara nugget game is fabulous fun. For investors with a low tolerance for risk, it might be best to enjoy the exploration from a safe distance"


MM