is aar the next rms, page-14

dbk - good point about koongie - its a solid project - particularly if zinc prices remain around current levels and they appear to be steadily working towards bringing it to fruition.

Interestingly LME zinc stockpiles have also started to fall again recently - so its looking a bit better for zinc prices lately. The US pump priming exercise won't have harmed the outlook for base metals either.

Regarding Mandilla - the proximity to RMS Wattle Dam gold find surely means an AAR buy effectively includes a free lottery ticket.

The quiet and consistent buying of RMS that has been going on lately implies to me that its well supported at current prices - which makes me think in all likelihood RMS have something quite serious on their hands - they've already had history making 6 KG/tonne drill intersects - and the followup drilling hasn't dissappointed - in any regard this appears as though its going to be a major deposit.

In a recent interview RMS MD likened the geology of the wattle dam area to the Red Lakes area of ontario. Now I'm sure he's not the first gold explorer/producer MD to liken a find to the red lake area but its still interesting non-the-less and my layman reading of the red lakes geology it sounds pretty plausible. (shear hosted gold, mafic/ultramafics, volcanic sediments, granite).

There are several multi million ounce deposits in the red lake area. The red lake gold mine itself was/is a 10 million oz deposit (being mined at 500koz+ per year). The average grade of this mine is 70g/t! - one of the highest grade gold mines in the world.
A km or two away is the campbells gold mine - another high grade, 13 million oz total deposit.

Surely its reasonable to get just a little bit excited at the prospects for AAR at Mandilla given its only about 2km away from wattle dam.

I just hope they're planning on doing some more exploration drilling on it in the near future.