ferrets stock to watch: agincourt resources ltd

Ferrets Stock to Watch: AGINCOURT RESOURCES LTD
09:24, Thursday, 5 October 2006

A GOLD PRODUCER/ EXPLORER WINNING BATTLE OF EXPANSION

Sydney - Thursday - October 5: (RWE Aust Business News)
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OVERVIEW
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Agincourt Resources Ltd (ASX:AGC) is a relatively young entity
but in the past year it has been going full blast to put together a
string of companies which is creating a diversified mining group.

It's been a busy year for the company, indicated by the summary
of achievements.

Agincourt is also running with the big guys.

After year end, the company completed the acquisition of the
Martabe gold and silver project from Newmont Mining Corporation for
$US80.25 million of which $A50 million is paid in Agincourt scrip.

A capital raising of $100 million was undertaken to partly fund
the acquisition and for the completion of a bankable feasibility study.

Newmont will become Agincourt's largest shareholder with a 19.9
per cent interest which is escrowed for one year.

The Martabe gold and silver project in Indonesia hosts 5.3
million ounces of gold and 54.8 million ounces of silver.

In other developments reported by the company:

* Successful ASX listing of the uranium company, Nova Energy
Ltd. Agincourt owns 57 per cent of the issued capital;

* Acquisition of Consolidated Minerals Ltd's gold interests in
Brazil, Victoria and WA and completion of 6,000m diamond drilling
program in Brazil;

* Consistent gold production continued from the two underground
ore sources Calais and Woodley to achieve gold production of 113,605 oz;

* Ore produced at the Williamson open pit on Lake Way;

* Intensive underground and regional exploration programs were
maintained at the Wiluna gold mine in Western Australia with expenditure
in excess of $5 million; and

* Option agreement signed for a nickel JV with Independence
Group NL (ASX:IGO) for IGO to explore on the highly prospective Wiluna
nickel belt.

Yesterday Agincourt Resources reported some very successful
drilling in the east pit saddle at the Wiluna gold mine.

Drilling intersected a new high grade orebody.

The details included 56m @ 10.8g/t gold (true width -
approximately 9.7m including 4m @ 81.6g/t); 24m @ 13.4g/t gold (true
width - approximately 4.0m including 6m @ 40.0g/t).

Agincourt Resources says that recent RC drilling in the East Pit
saddle has identified a new high grade lens of mineralisation lying
adjacent to main East Lode structure.

As this mineralisation was not included in the original
optimisation, it represents a significant improvement to the economics
of the East Pit Cutback project at the Wiluna gold mine.

Work is currently underway to refine the resource model and
include it into a re-optimisation.

The new lode lies within a highly altered dolerite unit in the
Eastern Wall of the proposed cutback and will be extracted along with
remnants of the existing East Lode structure and backfilled old
workings.

A preliminary interpretation of the structure shows it to have
been missed by both earlier RC drilling and by the underground
development in the 1930s and 1940s.

The mineralisation appears to be constrained within a flexure
within the East Lode fault, hosted entirely within a highly silicified
and stockwork veined dolerite unit located on the eastern side of the
fault.

Estimates of the lode dimensions are approximately 30m along
strike, 80m down dip, with an interpreted true width of up to 14m.

Drilling in the main East Lode structure has also successfully
penetrated the filled stopes remnant within the Saddle area.

Results so far have been encouraging with the fill grades
averaging 3.6g/t and high grades present in the pillars.

SHARE PRICE MOVEMENTS
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Shares of Agincourt Resources slipped 5c to 98c yesterday.
Rolling high for the year has been $1.95 and low 96.5c. The company has
292.3 million shares on issue with a market cap of $198.3 million.

Earnings have been disappointing with Agincourt directors
reporting a consolidated net operating loss for the year to June 30 of
$39.1 million (2005: profit $2.6 million), which included a non-cash
hedge accounting adjustment of $28.5 million (2005: nil) relating to 'out
of the money' gold forward sales contracts.

This result was in line with the 2006 year-end financial results
guidance released to the market on July 7.

A disciplined approach to amortisation of underground capital
led to an increase in the underground capital amortisation rate,
resulting in a high amortisation charge for the year.

This increase, together with the open pit pre-stripping costs
amortised, has seen the amortisation expense increase to $27.5 million
from $5.6 million last year.

Other cost increases, although slightly higher than budget, were
in line with the market conditions currently prevailing in the resources
industry.

Revenue from ordinary activities of $74.9 million (2005: $65.6
million) was derived from the sale of 113,605 oz (2005: 111,280 oz) of
gold at an average realised gold price of $653 per oz (2005: $581 per
oz).

BACKGROUND
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Agincourt Resources was established in 2002 as a vehicle for the
acquisition of the Wiluna gold mine and associated tenements from
Newmont Mining Corporation.

Following completion of the transaction in December 2003,
Agincourt merged with a listed IT company (Gowit Ltd) and then relisted
on the ASX Mining and Oil board.

The company's core operation is the Wiluna gold mine, located
about 1,000km northeast of Perth.

The mine employs around 250 people and produces around 120,000
ounces of gold per annum.

Ore is sourced from several underground deposits and the BIOX
process is used to extract gold from the refractory sulphidic ores.
Wiluna's operating costs have generally been in the upper
quartile of the gold industry and Agincourt is committed to production
increases and cost reductions in order to create more attractive margins.

Agincourt is aggressively exploring for additional gold reserves
within the Wiluna mine area and on surrounding tenements.

The company aims to increases its reserves to over one million
ounces.

It is also exploring for sulphide nickel deposits in prospective
komatiite flows in the tenement area.

Agincourt has excellent gold and nickel exploration prospects.

Gold was discovered at Wiluna by three prospectors, George
Woodley, James Wootten and Jim Lennon one St Patrick's day in 1896 during
a prospecting trip from Cue.

In the 100 years that have elapsed since that discovery, the
area has produced in excess of 3.7 million ounces of gold.

There have been three major phases of mining activity - from
discovery to 1924 when gold was won from shallow underground workings in
the oxidised zone.

ENDS