shareholders need to read this

Hi all

This is going to be a long drawn out analysis so please bare with me as it outlines my original reasons for buying aro. Despite being mighty annoyed with the cap raising all is looking very good. This information is from the chairmans address, yet please refer back to the annual report and progress updates for confirmation:

Acquired the Macphee Creek Uranium Project ? a project that the Company believes has substantial potential for the discovery of an economic uranium resource Acquired the Macphee Creek Uranium Project ? a project that the Company believes has substantial potential for the discovery of an economic uranium resource;

My thoughts, uranium and rare earth exploration (REE) are the way of the future and previous historical data indicates large annomolies. Note they want to start DRILLING as soon as possible. Why???

Acquired the exciting gold opportunity at North Doolgunna to the north of Sandfire ? a project area of particular scope, world class interest and excitement;

My thoughts, forget sfr. This is right on the border of barrick gold where there are large annomolies exhibited. Refer to previous reports on ND. This was always about the gold which conservatively is predicted to climb to $1850 in 2011. Especially if the u.s fed continues to print money. N.T is cleared and soil samples are done. Areas to be targeted for DRILLING PROGRAM.

LOWER SMOKE CREEK DIAMOND PROJECT (ELA 80/4120)
The project area is adjacent to the company's Carr Boyd Range Project and is located approximately 110 kilometres south-southwest of Kununurra in the East Kimberley Region of Western Australia.
The recent acquisition presents Astro with the opportunity to capitalise on the renewed interest in diamonds in the region. This was recently highlighted by Venus Metals Ltd in their announcement to ASX on 11 November 2010. That announcement outlined a JORC inferred 5 Million carat diamond resource at its Smoke Creek Project, which is within the boundaries of the Lower Smoke Creek application.
The southern boundary of Lower Smoke Creek Project adjoins the Argyle Diamond Mine tenement area that, prior to mining, was reported by Argyle Diamond Mine to contain an estimated overall resource of 14 million m3 (or approximately 30 Million tonnes) of gravel at an average grade of 1 carat/m3 representing an estimated grade of 50-70 carats per 100 tonnes.
Astro is evaluating various options to exploit its diamond assets and will be undertaking a review of the extensive historical data in order to progress to a work program upon grant of the tenements.
CARR BOYD RANGE DIAMOND PROJECT (ELA 81/4316)
The project lies approximately 12km north of the Argyle diamond mine and abuts the Lower Smoke Creek Drainage area; the site of the original diamond finds resulting in the Argyle AK1 diamond pipe. The project is considered highly prospective for primary diamond intrusions similar to the AK1 Pipe.
Previous explorers undertook a detailed aeromagnetic and radiometric survey in the area which partially covered the current application. The intention was to seek geophysical anomalies for the presence of buried kimberlite pipes. This initial survey was extended to the northeast in 2001 following the identification of aeromagnetic anomalies that followed the favourable structural setting along the Halls Creek Fault.

Initially, 13 aeromagnetic anomalies that resembled the signatures of intrusions were identified along the southern margin of the tenement. These anomalies were then selected for loam sampling to check whether diamond indicator minerals and minerals originating from the underlying bedrock were able to concentrate on the surface, despite approximately six metres of alluvial cover in most areas.
The Lower Smoke Creek and Carr Boyd Range Projects are highly complimentary in nature with significant prospectivity demonstrated along the adjoining boundary of the tenements. This has been highlighted consistently in historical reports with evidence of previous activity not diminishing the productive capability of the tenure.

ARGYLE DYKES
The Argyle Dykes are 3 contiguous leases located approximately 116km south southwest of Kununurra and 9km west of Argyle Diamond Mine.
Astro have been maintaining the tenements throughout the markets disinterest in diamonds. However, with renewed market vitality the Company is now in a position to more fully determine the prospectivity of these diamond assets.
Previous drilling established that the dykes are wider at depth and heavily veined with quartz. However they have never been drill tested at depth to determine the full extent of sub-surface lamproites.

My thoughts. Long term holders would know I posted about argyles proximity to rio who are spending $800 mil on getting their mine up and running. Also don't be surprised by a large j.v partner (just imho).
The Company expects to be in a position over the coming days to release more information on several of these project areas.

The company continues to expand its focus towards exciting new and large dimension exploration and mining opportunities. To this end Astro is currently in detailed discussions with an international corporation about an acquisition and venture arrangement on a very interesting overseas resources play. Those discussions are expected to be concluded over the coming week.
On the corporate side the company has increased its cash position by approx $1.5 Million to nearly $3 Million.

My thoughts, "a large international company"??? for an os acquisition. If that's why the cr was done well and good. I don't want news evry week but I don't want to be a mushroom either. It would appear that management are doing a lot of work behind the scenes. It is just a matter of informing the market of what they are doing.

To conclude:

A large and diversified portfolio in prolific areas of historical production in AUSTRALIA.

A potential acquisition O.S possibly in REE.
Soil samples due shortly. With every indication aro want to drill as soon as possible??? Why???

A market cap of under 10 mil

A board who continues to perform despite heavy fire, a lot of which came from me.

The question one must ask of oneself is there a huge potential upside. For mine, I am changing my sentiment to a long term buy.

If you made it this far. Thanks.

PGamble