GDN 0.00% 1.7¢ golden state resources limited

not as expected...

  1. 15,276 Posts.
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    Announcements and market activity just not adding up...

    The markets reaction to today's news is not unlike that when the Pinkerton Trail "upgrading feature" announcement came out just prior to the "pipe stuck" did the opposite of what might have been expected.

    It dropped today...but this was facilitated to help an apparent net buy churn.

    Today's announcement suggests just 0.2mmcf/d from this lower Barker Creek zone, which was the one previously flared...clearly not a good result given indications whilst drilling as reported by the company.

    This zone was originally reported as a single narrow intersection of just 11 or so metres, with just 4-5 metres likely to be productive, so whilst the flows from here are disappointing, it was not the best of the upper target zones.

    I am concerned however by the delay in reporting and market reaction to this announcement...and if we get good news on the next zone, my "suspisions" will be vindicated.

    The uranium news was good however, but with the obvious directors holes, it was always going to be so.

    The extent of the resource footprint is also as expected...and in my view we can expect not only a confirmation of the previous JORC resource, but the likelihood of an upgrade to tonnage due to lower cut-off numbers.

    GDN is still no more than a trade for me...and typically counter to the announcement chase being conducted by most of the punters.

    Was not holding over the weekend, did not touch it today.

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