My nagging worry is that, whilst the RC drilling has proved to them that they have a big system with huge thicknesses and strike length of sulphide alteration, this may not yet translate into large thicknesses of grade in those RC holes. So much as I want to buy back in before these first RC assay results come out, I am afraid to do so, in case the RC results disappoint and all those hordes of PPP subscribers head for the exits.
But conversely, if they actually have several quartz-sulphide intersections in those RC holes (ie. smashed up sections of what was shown in those diamond core photos) then those RC holes will scream gold, and I will wish I had gone in there for all I was worth.
So, geological twit that I am, I am trying to make a crucial geological call without the key geological information.
There was also quite a lot of the usually-expected geological information actually missing from AUZ's latest release, not least:
1. There were no drill sections,
2. The total depth of the diamond hole was not stated (though we know from the annotations under one of the photographs that it went to at least 283.6m - well beyond the originally-planned 260m that was shown on the 'red blob' drill section. I wouldn't be surprised to learn that it actually went to 300m total depth, depending how many additional drill rods they had on site).
3. They still haven't given us any idea of what they now believe the angle of dip is (though I am sure it can be seen in the diamond drill core), so they are still only telling us what the 'downhole thicknesses' is rather than 'true thickness' (which is usually some easily-calculated percentage of the downhole thickness)
Overall, like you, I am actually inclined to think that these RC hole assays will be very good rather than bad, but I wish I knew more about what they had actually seen in those RC holes and could be sure.
I mean, we know that at least some of the diamond hole assays will be good, because we can see the photos. But the geology of the RC holes remains a mystery.
If the visual drill logs are suggesting that the RC assays will be good, then you might find that some of the sophisticated investors subscribing to this new issue are actually the company's directors.
But if the RC holes look less exciting, and new investors are actually outside brokers or their clients, then you can be sure they will have pushed hard to screw the issue price down as far as possible to minimise their entry cost and maximise their profit. Those guys are ruthless when you go cap-in-hand to them for money.
Anyway, it will be what it will be, and I am sure we will know by the end of the week.
They certainly need a bit more cash if they are going to go drilling 300m diamond drill holes and extending that IP survey to the full 6kms.
Whatever the case in the short term, must look pretty good for them to be gearing up for all that additional work.
AUZ Price at posting:
2.4¢ Sentiment: Hold Disclosure: Not Held
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