Ann: Conditional Purchase of Burbanks Gold Plant Coolgardie, page-12

Comrades........waking up to this news came right out of left field. Took an extra bowl of goulash so I could digest the contents of the release.

What does it all mean?

Well, firstly, buying the Burbanks mill buys Auric a seat at the gold table in Western Australia. You are no longer a nano cap explorer and are now potentially a serious long-term producer of gold and you won't be scrambling around looking to lock in toll milling agreements.

Admittedly the mill has a capacity of only 200,000 tonnes a year. That aint much in the scheme of things so my guess is that they will be doing the hard numbers on an upgrade.

If they could bring the mill up to half a million tonnes a year and Auric had decent dirt to feed it then the maths would be pretty interesting....i.e. 500,000t x 2g/t = 32,000 ounces per year.

At current prices you would be generating $130 million+ in gold sales. I'd call that a substantial business with a market cap of around $200m.

In other words as an investor I can now see a pathway for the shareprice to be somewhere near $1.50 within a couple of years.