The market was slow to react to the RNS issued today regarding the São Martinho Gold Project and Tarouca Mine. Towards the end of the trading day the share price moved up 15%.
This is a link to the RNS.
Looking at the São Martinho Gold Project the results are exceptional. One bore hole had a reading of 49 g/t.
If you look at the top highest grade underground gold operations they have an Au grade of between 11.1 and 44.1 Au G/t.
This gives an indication of the potential for the São Martinho asset.
It is difficult to believe that when the market understands the implications of this and the Tarouca mine that the share price will not make further gains.
The JORC compliant estimate H2 2016 is going to be interesting as it will crystallise the value of this asset.