Problem is the inability to raise enough capital to undertake a...

Problem is the inability to raise enough capital to undertake a full scale drilling campaign to properly define the resource.

There is discovery cost and it's pretty easy to gauge the band in which the next resource upgrade will likely sit. Since the last resource upgrade, They've have spent around $2.8mil. Divide that by $10-20/discovery cost and the expectation is that they'll add 140Koz min & 280Koz Maximum.

It'd take the total resource to around 1.35Moz, however, they'd need at least 800Koz of the resource in indicated. currently only 410Koz. This will enable them to produce a SS based around a production profile of 550Koz-600Koz in H2.

However, this won't really change anything as without a proper market re-rate and AAR sitting at valuations over $100mil, they'll still face the same problem of not having a proper exploration budget.

Ideally, they'd want to raise $18mil to accelerate drilling and add another 1moz in total resource (taking the total to 2Moz+) & having 1.4Moz of the resouce in M&I which after PFS should result in around 1.1Moz in ore reserves. Given market sentiment for small cap gold stocks, it's not likely to happen.

Best outcome would be for AAR to seek an AOP/RMS type exit. circa $130/oz if defined open pit resource. say 1.3moz x $110-130/oz = $144-170mil. So around a 20 cent exit.