bullish announcement sp needs re rateing

Below a copy of yesterdays announcement, really cant see any reason why GAU is not trading around .30-.40+ atm with all there current projects potential, take a good read, capper at .20 has pulled last night so possible we may see a rise today:


GREAT AUSTRALIAN
RESOURCES LTD

HEADS OF AGREEMENT OVER MOOIPLATS PLATINUM PROJECT IN SOUTH AFRICA

Great Australian Resources Ltd (GAU) is pleased to announce that the Company, through its 50% owned company, Impact Mining Pty Ltd, has entered into a Heads of Agreement (HOA) with a South African Black Economic Empowerment (BEE) group, South African Mining Development Company (Pty) Ltd (SAMDC) to acquire up to 74% over four farms, totalling approximately 300 km2. SAMDC will maintain 26% equity in the project.
The Prospecting Rights are located on the north-eastern limb of the Bushveld Complex in South Africa (see Map 1). The main target minerals on the properties are platinum, nickel and other Platinum Group Elements (PGE). The project area covers approximately 25 kilometres of strike length along the Bushveld Complex and located west of major platinum mines operated by Anglo American Platinum, Aquarius Platinum and African Rainbow Minerals.
Under the terms of the agreement, Impact Mining will acquire 74% of the project in consideration for AUD $20,000,000 should Bankable Feasibility Study prove to be positive for the project.
The Mooiplats project has had 34 drill holes (totalling approximately 20,000 metres of diamond drilling) by previous explorers which clearly delineated both the highly sought after Merensky and the UG2 reefs to extend within the project area for in excess of 15 km.
A significant resource figure has previously been quoted over the project area by previous mining companies in the mid 1980’s, but as there is an uncertainty of whether the resource reported to date is JORC compliant for Australian listed companies, GAU will refrain from commenting on the resource value until further due diligence work has been completed. It is the intention of GAU, if necessary, to drill additional holes on the project area to confirm the previous quoted resources to update them to being JORC compliant.
Drill results to date indicate that the platinum values are extremely encouraging and are typical for the Merensky reef on the Western limb of the Bushveld .
GREAT AUSTRALIAN
RESOURCES LTD
ACN 106 874 917
www.greataustralian.com.au
The Bushveld Igneous Complex represents approximately 75% of the world’s current platinum production from within two major horizons, the Merensky and the UG2 reefs. It is the intention of Impact Mining to commence due diligence to confirm the reported resource and to carry out further exploration to extend the current resource base.
The mining sector in South Africa is still very robust and the South African Bushveld Complex ranks as the world’s primary source of platinum group metals. With the increase in platinum prices at record highs (currently US $1,230 per oz) and increased possibilities for local downstream beneficiation of platinum group metals, GAU believes that there are still strong prospects for the growth of this sector in South Africa.
Demand for platinum reached 6.7 million oz in 2005, an annual rise of 160,000 oz. Purchases by the autocatalyst sector again grew very strongly for the 2005 year to a new high of 3.82 million oz (increase of 9%). Supplies of platinum expanded at a similar rate to demand, consequently the market remains in deficit.
The Company has commenced its due diligence studies on the project. GAU believes that the project offers an attractive opportunity for potential future benefit and wealth for the Company, based on a set of quality world class tenements and solid fundamentals for Platinum Group Elements.
The Company also formally signed the Belfast Joint Venture Agreement, the subject of a recent Company release. This JV covers an area on the South Western Bushveld and covers an area of approximately 15,000 hectares. Exploration work is expected to commence during the coming quarter with geophysics and follow up drilling of anomalies. The target is both Merensky and UG2 reef in an area that has yet to be fully explored.
Joe Cornelius BSc, MAustIMM, MAIG, SIA
Managing Director
The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves of the projects owned by Great Australian Resources Ltd is based on information compiled by Mr Joe Cornelius and Mr Don Horn, who are members of the Australasian Institute of Mining and Metallurgy and have sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as Competent Persons as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr. Cornelius and Mr. Horn consent to the inclusion in the report of the matters based on his information in the form and context in which it appears.
For further information please contact:
Great Australian Resources Limited Telephone: +61 8 9479 5745
13/28 Belmont Avenue Facsimile: +61 8 9479 6362
Belmont WA 6104 Website: www.greataustralian.com.au
Email: [email protected]
GREAT AUSTRALIAN
RESOURCES LTD
ACN 106 874 917
www.greataustralian.com.au
Map 1
Unit 13, 28 Belmont Avenue, Belmont, WA, 6104
Phone: +61 (08) 9479 5745 Fax: +61 (08) 9479 6362 E-mail: [email protected]