The obvious one is that despite the promise of minable copper and gold ore at Forrest and Wodger the truth doctors (drills) have not found it yet. Maybe it's there, but maybe it's not. There is certainly vms-type copper and gold in this area, which is about 8kms in length (including Big Billy to the north) but it's going to take time and money to fully test it; patience and perseverance too!
While Feathercap looks very promising for a gold resource, because of AUR's own results and the proximity to the Durack gold mine and the exploration just over the eastern border by SFR (see the last 2 AUR(SFR) Q reports for March and December yielding nice air core gold results, it is in its early stages. The area from Feathercap eastwards for many kilometres way into AUR/SFR's Morcks Well looks pretty promising as a gold camp. That's a WIP too, so once again it's a matter of patience and perseverance.
The not so obvious one is the fact that Lazarus has seemingly dropped out of and lost interest in (maybe?) the financial support for AUR pursuant to the cancellation of its underwriting commitment 5 weeks ago. That happened because of the delay in getting the necessary consents for SFR to sell Sams Creek to AUR. SFR and AUR have agreed to extend the time to get the approvals to the end of this month.
There is great uncertainty now as to whether or not this deal will go ahead. If it had happened by the original scheduled time (end of March) then these things would have happened:
1. AUR issued more shares at 8c and received about $7m (going by memory).
2. SFR became a cornerstone investor by shares being issued as part of the price for Sams Creek - just under 20% holding in AUR.
3. AUR owned Sams Creek.
I liked 1 and 2. I am ambivalent about 3. 1 and 2 are the important ones for me.
What now though about 1? Read this from the 1 April ann:
So, Lazarus looks to be no longer involved. A capital raising is stated, but in conjunction with SFR. That's an interesting thing to contemplate, eh! It looks as if SFR not only still wants the sale to proceed by agreeing to extend the timeline but might also be involved with assisting with the CR if it does. We wait! I really hope that it all goes ahead.
In my opinion, material to this deal (resulting in SFR becoming a cornerstone investor) is an undisclosed reason for SFR wanting 'in' for more shares. What's the reason? Why? SFR has been exploring Morcks Well (jv) for some time now. It has taken its time in doing so too. We know from the reports from AUR (info supplied by SFR each quarter) that there is widespread gold discovered so far, and only by air core drilling. We also know that there is copper in parts, vms-type too. There are also released assays for other metals that are often associated with vms discoveries.
SFR promotes Morcks Well in its releases. This is from its last Presentation: Three centres of sulphide mineralisation discovered to date – DeGrussa, Monty, Morck Well.
What's behind the closed door Karl?
Anyway, I think that a material part of the loss of interest from buyers is the funding and cornerstone investment uncertainty. If all of that goes ahead, then I expect good things to happen.
AUR Price at posting:
6.8¢ Sentiment: Buy Disclosure: Held
(20min delay)