This is a "start-up" project that utilized a local Fiji shell company (that is why the consideration was so small). AQX probably spent several hundred thousand dollars on due diligence (exploration and geological evaluation) and start-up costs (including the establishment of a local management team). The geological team doing the evaluation is highly skilled and the prospects seem to have some significant upside, based on the tenor of the reported grades and underlying geological structures of both properties..
AQX have done a very professional job at Horn Island and appear to be aiming for a repeat in Fiji. IMHO the significant upside in AQX is found at the growth of shallow gold resources on Horn Island and development of the JV relationship with SBM. Good luck to all longs.
AQX Price at posting:
2.9¢ Sentiment: Buy Disclosure: Held
