It seems most gold juniors are down; I don't really understand that; I would have thought that gold staying firm at $1750 was a very bullish sign.
Anyway, that corporate release from Volta this morning was full of some very good news.
And as well, I don't know about the rest of you, but I am feeling very positive about the POG in the last few days. I am not one of these fanatics who believe in $5,000 an ounce, and I have always been open to the possibility of a significant decline in the POG, but right now it looks like we are going to inevitably surpass $1800 and start moving toward $2,000.00. I really see nothing in the way of the technicals; certainly the US dollar is rolling over. When high POG becomes a reality I think we will see more money come back into the junior gold sector. If not, Volta itself will perform and the micro-economics of our project will move us up. The probabilities are in our favour in so many respects. 1. ratio of price of juniors to POG at an all time low, and a reversion to the mean seems inevitable; 2. POG appears ready to march higher; 3. As Kevin indicated this morning, we are into pre-production mode, and very few explorers reach this pinnacle; 4. We will have a "bankable" feasibility study next year, wihch intermediates and seniors can rely on in considering buying Kiaka or the whole of VTR; 5. It looks like we will be getting two new resources, one for Gaou and one for Kiaka in January; 6. drill results for Gaoua coming out in a few weeks; 7. Fiscal Cliff works both ways for gold - gold can be a safe haven if US goes over cliff, or a play on inflation if problems kicked down the road; 8. the staged in approach to mining Kiaka is to be presented in detail in January - that is what many on this board have been clamouring for, and I think it will releive lots of anxiety; 9. the situation in Mali, which may have dampened investor enthusiasm for Burkina Faso is being addressed by joint forces in January of the new year;
So bottom line is that there are many reasons to believe that current share price levels should not last. The problem may be as set out in my earlier post that the generalist funds are abandoning the gold mining sector entirely based on poor results from the seniors. But of course a pre-development play like Volta is a completely different animal. The current market cap of 80 million or whatever it is is truly an insult given that our NPV for Kiaka alone is worth over a billion at current gold prices.