AFM have interests in central asia (Kyrgyz Republic). Both oil...

AFM have interests in central asia (Kyrgyz Republic). Both oil (potential 30mmb) and gold (gold free carried including 24g/t). If you want a large exposure at high risk, their options (AFMOC) are long dated (May05) and only .005 = .5c.

P/B ratio = 0.96 and AFM are at historical lows. Cap = $9M. Reports look to be a good standard. All sounds too good. Are rule of law and mafia problems a factor? Report extracts follow:

FARMOUT OF KYLDOO GOLD PROJECT – KYRGYZ REPUBLIC
Afminex has agreed to farm out the Kyldoo gold project in the Kyrgyz Republic to TSX Venture
Exchange listed Lalo Ventures Ltd (“Lalo”). Lalo plans to commence a four hole diamond drilling
program to test the proposition that the project could host a significant black shale hosted gold
deposit.
The 149 square kilometre Kyldoo Gold Project is located four kilometres west-southwest of the 5.6
million ounce Makmal mine. Gold mineralisation at Kyldoo is hosted in black shales similar to
Kumtor, Sukhoi Log, and Muruntau.
Preliminary work to date has identified an anticline structure continuously along a 20 kilometre
strike length. Geochemical anomalies of Au, As, Sb, and Mo occur along the entirety of the anticline,
with a gold halo of five to 20 ppb. Fracture zones dipping towards the core of the anticline show gold
grades of up to 24g/t, suggesting the presence of a major gold bearing system. In addition, all dykes
and deformation beds around the dykes dipping towards the core of the anticline carry gold, further
suggesting the presence of a gold-bearing system.

EXPLORATION DRILLING RESULTS UPDATE,
CHARVAK OIL PROJECT, KRYGYZ REPUBLIC
Ø New oil-bearing beds found in the Neogene Conglomerate
Ø Oil confirmed in Bed III over a 4 km strike length
Ø All six diamond boreholes successful
Ø Potential for significant reserves upgrade
Afminex is currently conducting a six well diamond core hole exploration programme in
its Charvak-1 project area. The objective of the programme is to test extensions of the
oil-bearing sandstone of Paleogene Bed III and to explore the Conglomerate beds at the
base of the Neogene sediments.
Bed III is the main oil-producing horizon in the Kyrgyz oil fields of the Northeast
Fergana Basin area. The Conglomerate beds unconformably overlie all the lower
Paleogene reservoir beds. The Neogene Conglomerate is a proven producing unit in the
neighbouring Uzbek fields, but has not been explored to date in the Kyrgyz Republic.
Four boreholes of the drilling programme were targeting both the Conglomerate bed and
Bed III. Borehole #2, targeting only the Conglomerate, was drilled in the area where Bed
III is eroded away. Borehole #6 was drilled in the central part of Charvak-1 outside of
the oil-bearing Conglomerate contour. This hole targeted Bed III along the strike of the
monocline away from the previously known oil-bearing area.
All six holes intersected the target beds and have returned encouraging results. Net pay
thickness of oil-bearing beds in the Neogene Conglomerate significantly exceeded predrill
expectations. Wireline logging in first five holes has been completed and the results
interpreted. These are summarised in the following table: