Here everyone....here is a copy of the Hartleys report.AUSQUEST...

Here everyone....here is a copy of the Hartleys report.




AUSQUEST LIMITED
Moves into West Africa
AusQuest Limited (?AusQuest?, ?AQD?, ?Company?) has entered into a joint venture to explore for gold with TSX listed gold miner Etruscan Resources (?Etruscan?) on Etruscans 670km2 Banfora tenements in Burkina Faso. AusQuest will initially pay US$1m upfront to earn 51% and fund at least US$1m worth of exploration in the first year of the agreement.
The tenements subject to the joint venture, held by Etruscan subsidiary Como?, are located in the Banfora greenstone belt, located in the south west of Burkina Faso. The Banfora greenstone belt contains similar geology to other prospective greenstone belts in West Africa containing multi-million ounce gold deposits. The nearest of these deposits is Gryphon Minerals Limited 1.1Moz Nogbele prospect to the west of the joint venture.
We see this joint venture as a high quality addition to AusQuest?s stable of large scale projects. Whilst exploration is at an early stage, initial results are promising and the tenements are in the right location to have multi-million ounce gold potential. With an enterprise value of under $9m, positive results from the pending drilling, and ongoing work programs across its Australian projects should result in a significant re-rating of the Company.
At least eight high priority targets
The project is still at a relatively early stage, with no drilling of note to date. However, Etruscan has taken over 30,000 geochemical samples from a combination of auger, soil and rock chip sampling. These programs have generated numerous plus 1g/t results and have identified at least eight high priority targets.
Initial drilling to commence soon
AusQuest plans to undertake initial RC drilling towards the end of the month, weather permitting due to the pending wet season. We expect the drilling to target the highest priority targets though it will be reconnaissance in nature due to the large scale of the anomalies and an initial attempt to understand the key structures controlling the gold.
We also expect the Company to undertake more detailed aeromagnetic surveys to understand the structures in the region, which are crucial when targeting exploration in West Africa.
Joint venture allows AusQuest to earn up to 80%
Etruscan is mining gold from its Youga Gold Mine at ~80koz pa, located several 100km to the east of the Banfora tenements. We understand that Etruscan is focusing on its near mine exploration and other areas of its 9,000km2 tenement package in Africa. Consequently, Etruscan was open to joint venturing out this tenement package.
Following the upfront US$1m and sole funding US$1m of exploration in year 1, AusQuest has the potential to earn 60% by sole funding an additional US$1m for exploration in year 2. Following this, AusQuest can earn up to 80% by sole funding a further US$5m over the subsequent four years. Post this, both joint venture partners can contribute equal to their share of the joint venture, or dilute. We understand that Etruscan does not have any claw back rights in the joint venture.