'Visable gold' could mean one speck in a 1m interval. A speck.
PRW recently went into a trading halt over results where they had intersected visible copper over 15m from 380m. It ended up being a spec of copper at 380m. Nada.
Yes, better than nothing at all.
Probably an excellent result to all those over on Hot Cocker, imo.
Could be the one in a million that actually turn into a resource.
Always tradeable, but sprouting fundamentals here requires fundamentals, and there are little.
This post seemed a bit harsh to me too Kennas. The announcement does at least give the dimensions of one of the nuggets and given the location of the lode vs their current mining location a high grade gold intersect here does have direct significance for the company.
Also to compare TAM to PRW is a bit misleading in my view. TAM has a JORC resource, they have a 250 ktpa plant, they have an operating underground mining operation, and they are currently producing gold - this is miles apart from an explorer like PRW (which is really a joke of a company basically).
My view on this is that the results may be quite promising and it does demonstrate the potential for TAM to expand its underground resource and operations and possibly improve grades. (but see my comments about cashflow and market cap further on in this post before getting excited).
TAM needs to get grades up to justify its current market cap imo (and to make a decent profit and cashflow) and they also need to demonstrate they really do have a decent quantity and grade of underground resources to sustain a long term operation.
Its also worth having a close look at last quarters cashflow statement - they really didn't have much of a cash buffer (about $1.1 million cash + another couple of million or so of gold on hand). Their operating costs are high because of their remote location and the lowish underground grades plus quite a bit in the way of development costs as they get the mining operation going. They still had negative operating cashflows last quarter so I would not be surprised at all to see them needing to raise capital some time in the near future (and a nice drill result to get the share price up certainly helps with this and the drill was put in pretty close - 25m away - from the previous high grade drill intersect on this lode from last year).
At 6c their market cap is over $200 million - that seems high and at that capitalisation a lot of good news is already priced in and cashflow risks seem to be being ignored.
The company has a long history of stop/start with this operation and have had to continue to raise capital to keep things going - but that does not mean they can't come good - there is potentially a very big gold system at coyote but there is quite a lot of risk in buying at the moment in my opinion.
I don't hold TAM at the moment - I have held it in the past and have traded it on occasion.