so what's ags worth?, page-7

We have only scratched the tip of the iceberg!

Out of all the tenements in the Frome Basin AGS's EL3666 looks the most exciting due to it incorporating a large proportion of what is being termed the Paralana Embayment. The interesting thing about that Paralana Embayment is that the Paralana gravity trough is considered a potential fluid flow path. Looking at the string of deposits from Mt Gee in the south west to Yagdlin in the north east it supports this theory.

Looking at the location of the Four Mile Deposit and its grades there is every reason to believe that there should be more uranium along the eastern boundary of the Paralana gravity trough both to the south/west and north/east.

Another big plus for AGS is that the mineralistion in EL3666 is within the Eyre Formation. FYI Heathgates 2009 Pepegoona discovery is also within the Eyre Formation. Good for them as it looks more receptive to ISR than Beverley which is part of the Namba Formation. Also of relevance is that even though Pepegoona only contains 9mlbs it is only just 70 metres from EL3666's boundary.

The big plus for me is in the Heathgate presentation on the Pepegoona Deposit where they state that more than 6 billion pounds of uranium has eroded into the Frome Basin in the last 4 million years.

Looking at the prospectivity of EL3666 and the fact that Heathgate have only managed to discover ~55mlbs (and this is probably being generous) you have to ask yourself where is all this uranium being deposited???

The geology says that it could be anywhere along the Paralana gravity trough and it could be a very large deposit or multiple small to intermedita deposits.

Is there a motherload?

Is the Wooltana Fault and Vidnee Yarta Fault (both located between Four Mile and Beverley) helping to contain the uranium within EL3666?

Considering that Heathgate has only mangaged to discover 55 mlbs of uranium in 10+ years of operation you could reasonably conclude that they don't have it and the chances that we do are therefore very high.

It looks as though Heathgate also have another deposit just to the south west of Pepegoona and also very close to the EL3666 boundary that they are calling "Pannikan". Apparently production commenced at Pannikan just this year. This once again supports the theory that uranium has been deposited all along on this sw/ne corridor in the Paralana Embayment sitting in AGS's EL3666.

Interesting to note that Four Mile and Pepegoona's geology, although being rather complex relative to Beverley's, is very similar in nature. The main difference being the levels of pyrite and kaolinite. The overall similarities bodes well for a you know what! AGS would have to be considered prime takeover material for Heathgate!

Very, very interesting times ahead for AGS!