warwick grigor comments

Sent to me by a colleague today:

Dear Gold Card Clients

I have had a few queries on AUM. I did mention it as a runner in recent weekly chart comments but said there was no information on which to give a fundamental view. However, I am very sceptical as I have known the people behind the company for 20 years and certainly would not consider them "blue chip".

Here are my reservations;

1. there have been no drill hole co-ordinates so there is no way we can plot up the results and draw any conclusions. This is a serious omission and I can't understand why the ASX hasn't pulled them up on this.

2. in May the was a 5 mt resource. Six weeks later, with another 5-6 holes, it increases to 50 mt. This is physically imporbable if not impossible

3. out of about 100 holes I have seen 5 or 6 very good one. The rest are ordinary and low grade


4. drilling of native copper will result in smearing and contamination down hole. Diamond drill holes are needed.

5. native copper would give the results of high grade. This is not unlike the Roseby orebody held by URL. It is not unique.

In my personal opinion this is a ramp that has been too successful - embarrassingly so for the company and the brokers pumping the stock. Now we will see the scrutiny that should have happened before, and the likelihood is that it will disappoint. There is an orebody of some sort there, with a very high section, but it has gotten ahead of itself.

Regards
Warwick


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Warwick Grigor
Chairman
Far East Capital Ltd
Suite 24, Level 6
259 Clarence Street
SYDNEY NSW 2000
AUSTRALIA
Ph +61-2-92470077