Ann: AQD to raise $2.5m , page-3

I will tuck this in here from Hartley dated 30/10

AUSQUEST LIMITED (AQD)
Dundas (Fraser Range) Drilling Starting Soon
AusQuest Limited plans to commence with the drilling of three (3) highpriority
nickel-copper targets within its 100%-owned Dundas Project, located
in the south-west margin of the Fraser Range Complex, WA.
An initial five diamond hole program for ~1,200m is proposed, with the rig
scheduled to be onsite late November for drilling in early December. This
high impact exploration program is a key near-term catalyst for the
Company, which provides exposure to potentially significant upside and
relatively modest downside given AQD’s current low market cap of ~$5m.
With a current estimated cash position of ~$2.7m, once T2 of the placement
completes (subject to shareholder approval), and with more funds to come
in from a SPP, which is underway, the Company remains funded for
budgeted exploration programs for the rest of 2013 and for 2014. As part of
the placement and SPP, participants receive one option for every two
shares subscribed. These options will be listed, have an exercise price of 4c
and expire on or before the 30 November 2016 (tradeable over 3 years).
Strong Discrete Conductors with some Anomalous Ni-Cu
The targets to be tested have been defined by a combination of
electromagnetic (EM) surveys, both airborne and then ground-based followup
and through soil geochemical sampling.
The application of EM in the Fraser Range has been an important
exploration technique employed by recent explorers and used successfully
by Sirius Resources to identify the conductors responsible for both the Nova
and Bollinger nickel-copper discoveries. Soil geochemistry has also played
an important role, providing some of the key indicators (anomalism) that can
upgrade targets and enhance the probability for discovery. The Company
has also identified potential mafic and ultramafic intrusive rocks that are the
preferred hosts for nickel-copper sulphide mineralisation.
Peru Target Generation Now Moving into Drill-Testing
AusQuest has built a quality portfolio of exploration opportunities in Peru,
which is considered to be largely under-explored and prospective for large
copper-gold systems (IOCG and porphyries).
Seven key prospects have been defined through follow-up work, three of
which are 100%-owned by AQD. The Company is now in the process of
obtaining drill permits to test these drill-ready targets, with some of the work
expected to be funded through the Peru JV with Cliffs Natural Resources.
These targets have high prize potential due to their size and location (within
the highly-prospective southern coastal belt).
Junior with a Diversified Portfolio of Projects
AusQuest is a junior explorer with a diversified portfolio of base and
precious metal projects across Australia, Peru and Burkina Faso. The
Company’s recent exploration focus has been advancing the gold and base
metals (nickel-copper) prospects at Dundas (within the Fraser Range) and
exploration opportunities in Peru.
With multiple drill-ready targets expected to provide a strong flow of news
and with the potential for discovery, we continue to recommend AusQuest
Limited as a Speculative Buy.