npv, page-6

Why was langer Heindrick sold to Paladin so cheap?? Why is BLR able to get Uranium properties in the US so cheap?? answer = Uranium out of favour at the time and no one ever envisaged that uranium would be selling for US$133 lb! AEX is a potential 10 bagger just on upgrading the rsource to reserve over the next few years! The only downside is how much they lose through share dilution funding development in the future and how much of the project in percentage terms they lose to black empowerment groups. I'm a gold bull and the outlook for gold over the next couple of years will make this project viable as a stand alone gold project!! AEX need to upgrade the resource from inferred to indicated and then to measured in the future. I suspect that these latest drilling results will upgrade sections of the referred to indicated status. From past experience when upgrading resources and reserves the size depletes due to prevailing metal prices and economics. I think we may not suffer such a large loss of resources due to the prevailing metal prices. That is assuming that the inferred resource estimate is accurate. An explanation of the reserve/resource jorc categories is listed below for information. As you can see, AEX is still a couple of years and a lot of dollars away from reserve status!

Mineral Reserve
Proved Mineral Reserve (UNFC Code 111)
Probable Mineral Reserve. (UNFC Code 121 and 122)
Mineral Resource
Measured Mineral Resource (UNFC Code 331)
Indicated Mineral Resource (UNFC Code 332)
Inferred Mineral Resource (UNFC Code 333)

As with all high reward project there is high risk! I invested in AEX in the oppies on the premise that I could lose 50% of my money on a bad announcement or make 10 times my money on a good announcement. Thats a $6K loss for a potential $100K gain! Works for me!

DYOR though!