is this your second chance at a 20c guf???

A company owning 700kHa of land along the western outskirts of GUF's Hughenden prospect is listing in September. This is a huge parcel of land, for a company which (if it lists at its prospectus price with a full subscription) will have a fully diluted market cap of just $10M and a cash balance of $6M, thus an enterprise value of $4M.

Look to a GUF thread I did recently to see how this company's land size compares to some of the majors in the Galilee.

The company is titled Baru Resources Limited and for mine looks like the goods. In my opinion, the estimated tonnages in the company's prospectus vastly underestimate the potential of their tenements. The EPC2078 alone could easily have 2Bt+ of coal in it if we use the actual area of the tenement, instead of some arbitrary 3% figure (best you read the prospectus to see what I mean here).

The company owns 7 tenements, all equal in size, but EPC2078 seems to have the most potential given they are looking to develop that tenement first.

The only thing holding me back is they won't moving into extensive JORC drilling until 'exploration year 2' so it might drift around the 20c mark once it lists given that a JORC resource might not arrive until 2013.

For more information, visit their website...

http://www.baru.com.au/

If you aren't interested, then perhaps have a read of their prospectus anyway because there's some good information in the back half of it on the area where GUF is presently working.