ARE has 25m 30c options expiring on the 30th next month ie 30/6/07
Given it has 135m shares on issue 30c = A mkt cap of $40m ($48m including opies exercised)
Now with about 1 month to go on the options and the SP at 22c/23c the opies are selling for very cheap,
I bought some because results from the Alfrod drilling should be back within the next 3 weeks (for more info on Alfrod see below)
HGO are touting Alfrod as a possible Olympic Dam IOCGU type play,
previous drilling = 76m at 0.95% copper including 12m at 2.18% copper in ALDDH001. The project also has significant uranium potential with past drilling returning excellent first pass with assay results up to 290ppm Uranium.
If we see a nice 100m at 2%Cu hit with some say 400ppm Uranium punters would be all over HGO and ARE touting them as the next Carapateena type players,
To give you an example, MOX ran from 20c to $2 on some success at its Groundhog prospect
AGAIN BUYING THE OPIES IS HIGH RISK, but if Alfrod has some meaty hits and the SP doubles to say 44c opies go from 0.6 c to 14c = 2300%+ return
If Alfrod has nothing specatacular = Lose all money outlayed on opies
So its all about risk reward, say but 100,000 opies at 0.6c max loss = outlay = $600, max return = ? ? ? $14k from my above example
Not for the faint hearted DYOR,
Alford 80% interest in this Olympic Dam type target
Potential Olympic Dam Style Mineralisation Intersected
at Alford Copper Project, South Australia
Hillgrove Resources Limited (ASX:HGO) advises that diamond drilling of a potential Olympic Dam Iron Oxide Copper Gold Uranium (IOCGU) style target at the key Netherleigh Park prospect has now finished with two holes completed for a total of 473m. The holes have been geologically logged and are now being cut for analysis with results expected within the current quarter.
The Netherleigh Park prospect is located within the Alford Project, near Alford on the Yorke Peninsula, South Australia.
The Alford Project falls within the IOCG Potential Rank 1 Area as defined by GeoScience Australia – the highest potential for IOCGU mineralisation within South Australia’s Gawler Craton. Drilling intersected a thin (30-40m) sequence of transported sediments before encountering brecciated and haematite altered basement rocks with variable amounts of sulphides including pyrite, chalcopyrite and galena (Figure 1).
