Tightly held, page-5

@bizzo

Hi mate,

Sorry for the late reply.

I’ve had a quick look at AUC before because I’m a holder of CHN who hold 10% of the stock. I’d put doing more research here on my to do list but never got around to it.

Just looking at the drill results from this quarter from the southern Jinkas trend. The high grade hits look quite promising but they don’t seem to extend up dip nicely with grade which would make this prospect way more attarcative. The drill spacing here is at 80m with 120m fences so the high grades at depth appear to have continuity between those two fences lines and the drilling is sparse along the northerly strike both to the north and the south. There are four shallower hits (good moderate grade sniffs) to the south and along strike which currently span approximately an additional strike extent of about 500m. It will be interesting to see how well developed these strike targets are and how continuous the mineralisation is.

The company has a big underexplored landholding and it’s current resource is competitive with its peers on a EV/resource oz basis as indicated by the company’s recent presenatation. The grade of the resource is on the low side so the company will need to demonstrate some good metrics when it comes time to do its feasibility studies. There are quite a big group of ASX explorer/developers at this end of the market looking to develop reources of a similar tenor. The market for funding is going to be competitive so I wouldn’t bank on this getting developed very quickly on the basis of the current resource size and grade unless the gold price works in our favour.

The use of EM to detect the high grade gold which is associated with pyrrhotite has been successful on another stock I own, AOP, in a similar geology but in that situation the high grades were associated with 10% sulphides and the EM work was ground based I think.

Please tag me in if this company gets any more of these good gold hits. Esh