One of the reasons why AAO has not had much attention, despite...

One of the reasons why AAO has not had much attention, despite the obvious prospectivity of it's Murninie project is that they do not have the 'nearology' of say a CRJ or MOX to existing discoveries such as Carapateena.

AAO's ground is at the very southern region of the gawler craton in an area not known for IOCG discoveries.

However nearology means close to nothing most of the time. IOCG systems have now been found all over the world (have a look at AIM's announcement this morning!).

Interestingly - HGO have also announced IOCG mineralisation in their project which happens to also be located in the very southern gawler craton/Olympic Domain region.

This may explain some of the interest in AAO this morning??? However HGO's announcement came out after AAO's strong opening so maybe not. In any case it does highlight the prospectivity of the southern gawler craton.

However HGO's announcement also highlights that even though IOCG mineralisation is found you also need that other thing - grade - good grade. HGO don't seem to have it.

Note to prospective purchasers - even though I am bullish on Murninie - the big gravity anomaly could still turn up negative. The good thing about AAO is that they should find some extensions to the nearby copper/gold mine as a 'worst case scenario'. The IOCG is the blue sky.

Blue sky potential because IOCG systems can be HUGE, eg, Olympic Dam - 4430mt at 1.1% Cu, 0.4 kg/t U, 0.4 g/t Au, 2.2 g/t Ag - in ground value 1 trillion dollars.