Dust flux, Vostok ice core

Dust flux, Vostok ice core
Two dimensional phase space reconstruction of dust flux from the Vostok core over the period 186-4 ka using the time derivative method. Dust flux on the x-axis, rate of change is on the y-axis. From Gipp (2001).

Sunday, February 9, 2014


I've been hearing stories lately from contacts in different junior explorecos about regulators questioning certain types of promotional literature.

In one company's case, the questions are driven by its inclusion of previously reported grades and tonnages of surrounding deposits in the same structural province. Now it is not clear to me whether the regulators are objecting because they are afraid that the casual reader will think that the neighbouring deposits belong to the company in question (it is clear they do not--the company has identified the owners/operators of the surrounding mines) or that they feel it is too promotional. I'm guessing the latter, in which case the fact that the grades/tonnages are already a matter of public record seems to render the problem moot.

How does excluding such information from the presentation help the retail investor? It doesn't. It is information which is potentially useful to the investor. In its absence, the retail investor will have less of an understanding of the area's potential than other, more sophisticated investors, who are capable of looking up such information themselves.

But perhaps that is the point. It is not yet time for the retail investor to enter the picture. Now is the time for institutions to get positioned. By excluding information from the eyes of the retail investor, the institutions can get safely positioned at a lower price. After the big move, it will be time for the retail investor to enter the picture, so that institutions can exit their positions safely. But don't worry--they'll leave the last few percent of the major move for you.

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