Here are a couple of things that we can know for sure 1. No one knows the future. 2. We can never know the motives of posters on HC. Are those with a positive outlook selling? Are those with a negative sediment buying? we will never know. So we just have to take what we know for sure and learn what we can and make out own best decision.
It has long been said and most recently yesterday in the WRM press release on page 20 at the bottom of the page that the AUL land holding has geological similarities with the Fosterville gold mine. Last July I went to Fosterville out of curiosity. I wanted to see what was there and what similarities there were. The place is massive. Even the parking lot is huge. It is as big as a massive shopping center parking lot. There was a constant stream of large trucks going in and out. It is obviously a huge operation. So I thought what does the ground look like? and how does it compare to AUL? Well the land is flat and there are these long rocky ridges like giant scars across the earth, and on the tops of these ridges there is shaft after shaft. None of these were very deep not like the ones in the woods point area. Upon leaving the area not far from the entrance to the Fosterville Mine beside the road there was one of those historical signs It told the story of the early miners. In the olden days there had been lots of activity but not any serious volume of Gold retrieved. Their biggest obstacle was the lack of water. Henry Foster did a lot to help the area by bringing water and so the town is now called Fosterville as a recognition of his work. Looking at the historical marker you can see that the Gold mining wasn't really all that huge compared to other places. Then the Canadians came and spent millions in drilling and the rest is history. How the geology compares to the land that AUL has I will leave that to the geologist. What I have noticed though in the old mines from Warburton to Woods Point and Gaffney's Creek area is that almost all of them are filled with water. In Fosterville they struggled with the lack of water and in the Woods Point area I am guessing that they would have struggled with too much water. When Gold was first found it only took a few years and there were thousands of miners then after a few years after they got the easy Gold they pretty much all left. So I am taking a bet that there is still a lot of Gold still in the hills. From what I know there hasn't been a lot of drilling in the area. Sure there are a couple of old drill rigs in Woods Point. One is in the valley near the creek and one is up a hill but they both look pretty old. I am taking a guess that if there is some serious drilling we might also discover another MS or A1.
As for WRM when you look at the exploration maps the AUL tenements are surrounded by other mining licenses. The others look good but in all honestly I believe that AUL has the best land and I think that if WRM gets ahold of it there will be some serious exploration. I can see why WRM wants our land and are willing to give us a ratio of 1 to .78 There are certainly others who would want it. So for WRM they pay nothing except delusion of their shares. They inherit the combined MCO and AUL tax loss which puts them at about a break even (assuming that they make a future profit) and if another mine is opened to supplement MS and the plant is working then I think we just might do very well. Just my opinion and wishing everybody well.
AUL Price at posting:
31.5¢ Sentiment: Buy Disclosure: Held
