General Discussion on AAU, page-775

Nice @signalFollower.

From memory we also have the additional 2 years of LOM to be taken into consideration don't we? I wonder if that was included in the comments around NPV upside of $150M for the project (Brian's recent proactive interview)? Even if it is the NPV goes from $218M to $368M (assuming the $150M was in USD). Then we can roll into the LD undergound mine straight after that.

There's 2 possible approaches to progress that we could take that I see which could have impacts on dilution and share price being:

1. focus on getting LD up and running then use cashflow from that to fund other exploration activities which haven't already been funded - is the EP oxide cap upcoming drill funded? I can't remember whether it was only the completed 6 drill program or not. This would definitely mean delaying the drilling of the porphyry deposit. For this we'd need $4M USD to finish our buy in to LD and whatever it takes to keep the lights on til LD starts producing.

2. raise more on top of requirements for scenario 1 to target EP porphyry deposit. I think the number quoted was $2M USD for this. Brian has already indicated that we would likely need a strategic partner for EP.

Longer term (say 5yr plus - when we are mining LD, EP oxide cap and New Horizons) company value should be similar but scenario 1 would be preferable from a dilution perspective. Having said this the market cap could be so many multiples of that if we are also well along the path of mining the EP porphyry deposit.

I'm happy either way as I am here for a long term hold and I see so much upside from here even with significant dilution.

Cheers