letter to angus, page-14

Angus just rang me and he didn't reply in writing and started off by saying that he did not want to make any apologies regarding not appointing a PR company as he felt that would be pointless and it wasn't a requirement like the oil companies to report every time they stabilise a drilling rig ect. He felt if he wasted shareholder money with spin, with the current economic environment it would do nothing to the share price and in fact may depress the price. He claimed that they are a honest company and did not need to invent stories to sure up their share price.

He stands by his companies projection of being a mid tier mining company sometime in the future, however qualified that when they made that comment that Zink prices were at $2700 and now $1700. He claimed that all recourse companies that are have Zink have been hit and some companies have even been making a loss due to the price of Zink and the Aust $. Some companies in WA have even closed their mines down and that AAR has out performed most of these companies. He stated that he has just mobilised a rig in the Kimberly’s, however there is no need to report that until the Qtly as there will be at least 3 months before they can start seeing results from these drills.

He stated that they will be putting a lot more effort in their copper recourse and gold recourse and that will be in the next qtly and also stated that we should start seeing the price of AAR improve as the week goes by.
He again made no apologies about not spending money on spin and that his small admin team will be better off when times like this of economic uncertainty.
He talked about his road show and the timing of the road show was as the Zink prices were staring to fall and could not get the big end of town to invest as they are starting to move away from the recourse sector. He feels confident that it will turn around and stated while I have been in there for this long if I can hold on a little more I should reap the rewards.

So it looks like they are going to put more emphasis on their Gold and copper tenmenent, while just shoring up what their Zink stocks are.
He is a very approachable guy and was very polite even after my email was straight to the point. So I think we can forget trying to get more stories out there it won't happen and we need to wait for the gold and copper results to come out in the qtly to get our share price up.
After all that I will hang in there for now and see where the price takes us.
Kind reg
ang01