After reading the recent ERM announcement i thought the news was good. As was reported the initial drilling results were positive and reached the success milestone to proceed to the next level of exploration drilling. I think there is a lot of expectation on ERM drilling results but everybody needs to keep the exploration phases in context. It was very unlikely that first phase drilling was going to provide detailed size and grade of anomalies as a lot of these huge anomalies seem to be at depth.
Pinnacles North Project - leakage from the underlying anomaly is occurring along 750m and grades are strengthening as they drill deeper. As mentioned they have only drilled to max depth of 75m so far. I think the next stage of deep diamond drilling has the ability to really excite the market in terms of this anomaly potential.
Trinity 1 Project - I was less clear on this one with it hosting a different style of iron oxide mineralisation not previously seen in the Tennant Creek province. I'm not sure if this is a good thing or not but it must show some potential as ERM management will continue to the next phase of drilling.
Northern Project Area - Early stage drilling continues on a number of Tier 1 projects.
Hopefully we might see a regular stream of announcements with drilling results from now on. However, in my opinion we need to keep in mind that these will be early or first stage drilling results from Tier 1 projects and may not contain outstanding grades but more likely leakage type grades from anamolies that are sitting at depth. These initial announcements may not set the market on fire (eg. even though the recent announcement in my opinion was a good one, their are quite a few traders out there that aren't interested in medium term holding and thats why i think there was sell off back to around 30c today).
In terms of news that may really set the ERM sp shooting up, I think the next phase diamond drilling at Pinnacles North Project may be something to watch for. They are due to start this next phase as soon as the drill rig completes the first phase drilling in the Northern Project Area.
I'm no geologist and these are just my thoughts from reading the announcement. In terms of sp stability, I'd be surprised if it dipped below 30c. Did you notice the buyers start building in high 20's when it approached 30c on Friday? If it does drop below 30c due to a large holder dumping, my feeling is that it won't remain under 30c for very long. Like i said, my opinion only, don't put your house on it!!!!