HELLELUYA! (The exclamation mark is mine.) The rather unique form of the greeting is part of an Easter message sent by an old Esso/Exxon days Geologist friend. His mother tongue is Arabic. As result, my friend Bill sometimes communicates with words and phrases that are “Bush-esque”. Today his phrase was particularly “ept”, because it arrived as I watched Cassidy stock. It was getting “Shellacked”. A persistent seller was driving the share price downwards for the third day in a row.

Then, suddenly, HELLELUYA! the trend reversed. Buyers came out to lift the stock price and relieve the selling pressure. The trading day ended with about a quarter million shares changing hands and actually closing on an uptick!

CHOICES: We will never know whether that selling was a “short sale” by a wannabe market shark or selling by a shareholder hard-pressed by his broker to ante up some cash to cover a margin account. The world market is in turmoil. The US market literally stands on its head. The Fed drops interest rates and the dollar goes up! The greater risk of inflation results in a drop in gold prices! I guess its time to rewrite the “Economics 101 Textbooks”. What a heck of a time to find a goldmine! Anyhow - I hope the seller was a wannabe shark and that he got his lesson right. 

In my imagination I see President Gillis. He is harassed by shareholders complaining that news is so slow in coming. As time ticks by it must seem to Gillis that the quote from Oscar Wilde that  "He has no enemies, but is disliked by his friends" applies.  

Eureka! At last he has enough data to allow a meaningful news release to be made. Did he rub his hands and chuckle in anticipation of discomfiting a possible short seller? I certainly hope so!  And I hope he squeezes ‘em tight!

NO LEAKS: This “helleluya” provides insight into how Cassidy manages information. Clearly, information had accumulated for some time. It can be seen that it includes some very good results. But the trading history indicates there was nary a whisper of a leak. No leaks is an important attribute. It is appreciated by investors. They are all fairly dealt with. The lift in share price, although short-lived after the announcement indicates to me that at least some persons appreciate what the results mean.

SIGNIFICANCE:  Some of us remember the original TV cop, Sgt Joe Friday, LAPD. The news release was like a typical Joe Friday utterance. Joe always wanted,  “Just the facts Ma’am, just the facts”.  So Sgt. Friday, here are the facts:

1.    The results announced carry astounding implications. This drilling pattern reported might be described as “aimed at finding out where the gold ain’t”. Obviously, these holes were not considered as aimed at “prime targets” or they would have been done months before!

2.    Serendipitally (Sorry, but I get tired of writing words that don’t send at least someone to the dictionary) these latest results demonstrate why we should listen when they say “Open along strike and to depth”.  Results at the actively mined areas both north and south of Cassidy’s ground previously caused many gold seekers to write off Guinea as being “Small Deposit” country. “You want to find big gold, go to Mali or Tanzania.”  Well, not necessarily so guys!  Go just a little bit deeper and drill 3 widely separated zones with excellent grade content for thickness as great as 42 meters. That’s a little bit more than 125 feet guys!

3.    Moreover, the description also identified “splays”. So was I anatomically wrong when I identified the area of the armpit?  This looks more like the armpit maybe. The previously drilled trends now start to look like mere elbows on a centipede. The “open as to depth” suddenly takes on Dollar Signs. It says that the scooping study now underway should have strong impetus to be “optimistic” about the probability of developing a mine.

WHERE ARE THE WISE GUYS?  Scouts at companies seeking advanced stage exploration projects have to be taking increased notice of Cassidy’s Kouroussa project. The depletion of gold reserves continues everywhere. Cost increases increasingly result in decreased world gold production and stifle exploration. The “inverted economics” attendant on the US trying to patch its “sick at home situation” must inevitably right themselves. As I watch the Cassidy stock action I keep saying to myself that there must be someone with “smart pockets” who stands in and keeps on buying. Most of a million ounces of gold resource. One hundred million shares. Nine hundred dollar gold. Hmm, that’s $9 of gold in the ground and growing, for $0.30. Time to stick around and see the hand revealed.