Fosterville South Exploration Ltd. (TSX.V: FSX)
Announced it has commenced drilling at its Lauriston Gold project, located in Victoria, Australia.
Lauriston is immediately south of and contiguous with Kirkland Lake Gold’s Fosterville Mine tenements, the world’s most profitable mine.
|Fosterville South||TSX.v : FSX|
|Market cap||C$163 m @ C$2.40|
|Location||Victoria State, Australia|
Fosterville South was launched with promotional fanfare, and normally I would avoid such stocks.
The strong reason for investing here was of course, the closeology to Kirkland lake’s Fosterville mine, the most profitable in the world. Any sort of decent drill results with a possible continuation of the trend would result in some corporate activity sooner rather than later in my view, with KL the obvious suitor.
I was disappointed when they drilled Golden Mountain first, and I’m not so sure they have that much confidence at Lauriston. Despite being well cashed up, they are not exactly throwing the kitchen sink in with only two drills, one RC and the other diamond, and down to 80 m.
We shall see in due course, Lauriston is a potential company maker, as Fosterville was for Kirkland Lake. Poor results would obviously see the share price down in short order, even if the outstanding drill results from Golden Mountain are good, in my opinion.