AGO has acquired 723km2 of tenements located 90km south of Port Hedland for $350k and 1.3 million AGO shares. Tenements adjoin the existing lAGO andholding at the Abydos Project.
Tenements are highly prospective for strike extensions to mineralisation (Lalla Rookh, Iron Mount and Strelley Gorge iron ore deposits) held by BHP Billiton on adjoining tenements. The tenements also contain extensions to geological formations which host the Sulphur Springs VMS deposits currently under development, the operating Wodgina tantalum mine and the historical gold operation at Lynas Find.
Milestones that should result in share price appreciation before the end of the year include:
1. Completion of a pre feasability study for direct shipping ore ("DSO").
2. Completion of an infrastructure study with respect to a potential magnetite concentrator at Pardoo (potential exists for +1 billion tonne deposit).
3. Completion of metallurgical test work on both DSO and magnetite samples.
4. Defining and testing new DSO resource targets.
5. Continuing infill and extension drilling around known resources.
6. Completing regional scale gravity surveys to define a larger number of targets for drill testing in 2007.
With +$24 million in the bank, AGO remains on target to commence production at rate of 1 million tonnes per annum, ramping up to 3 million tonnes by 2010.
Big month coming up...
AGO Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
