director buying, page-4

I’m not surprised Lindsay Owler has purchased shares in Argonaut (ARE). It’s all about location, location, location and the Domes region in the Central African Copperbelt is an excellent location to be exploring.

Zambia is Africa’s largest producer of copper and is pretty much politically stable – as much as any African country can be.

In the near term Argonaut’s (ARE) best chances are with Lumwana West in Zambia, specifically at their Nyungu targets (North, Central and South).. I’d forget about Torrens for now! If it happens one day then all well and good, if not, so be it. ARE has very wisely diversified and has many more strings to it’s bow than it had previously.

Re Nyungu, you only need to look at recent history where Barrick bought out Equinox for 7.8 Billion after they developed the Lumwana mine. And Kiwara’s Trident mine was acquired by First Quantum for 260 million dollars. Both these mines are in the same area as Nyungu. All these mines have produced similar results when first drilled.

ARE have an aggressive exploration schedule this year and are not sitting on their hands. They have plenty of cash on hand thanks to their investment in Cuesta Coal. Now that the wet season in Zambia is over, the 2012 field season commenced in May, ARE are actively exploring Nyungu right now.

Previous drilling has been concentrated on Nyungu Cental, but they are now looking at Nyungu North and Nyungu South this year. Initially with soil geochem samples and IP exploration. Depending on results, this will be immediately followed by a drilling campaign with two rigs (RC and Diamond) on site. The drilling will begin at Nyungu South in July and Nyungu North in August.

This is an exciting time for Argonaut shareholders and when the drilling results come out later in the year, assuming they are good, we could see some real appreciation in the share price.

Argonaut recently released a Lumwana West presentation via BRR media and this is well worth viewing at http://www.brrmedia.com/event/96759/lindsay-owler-director .

In particular you should listen to the case study between the Kiwara, Trident and Nyungu mines. The case study highlights the similarity between the mines and gives an indication of what ARE might achieve if they develop a mine in Nyungu, or at least prove up a resource.

It’s much more likely than once they confirm the resource they will be taken over and bought out. That’s fine with me when you consider that ARE is currently capitalized at a mere 14 million dollars, and when you consider what the shareholders in the other companies achieved with their mines.

Surely with shares available on market at 6c, Argonaut is an outstanding buy for the speculator. And when Owler buys shares, what more encouragement do you need!!