Friday, December 29, 2006

Oxiana Positive Outlook

Oxiana Limited ( ASX:OXR) has had encouraging results from drilling at its projects in South Australia (SA) and Western Australia (WA). The group has advised that based on its latest drilling results, it may be able to significantly upgrade the resource estimates for both the Prominent Hill prospect in SA and the Golden Grove project in WA. Further drilling at both projects will be undertaken in 2007. Oxiana Ltd expects to commence gold and copper production at Prominent Hill in the September 2008 quarter. Oxiana Ltd aims to increase its market capitalisation to $A10bn by 2010.
This can only be more positive news for this company. If commodity prices stay high this company is trading at a very good price earnings yield. It doesn't fit all my criteria though but for a higher risk play this could be a good resource stock to trade.

Good Luck investing.

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