Looking as though this share could do great things in near future.


I note from UK Analyist- China and Brazil only receieved "Interesting acreage " comment.

Repeated from end April-

Angus & Ross set for Queensland gold

The signs are good for a substantial pot of gold at the end of the mining minnows Australian rainbow. Timon Day goes prospecting

Tiddly mining exploration stock Angus & Ross (AIM: AGU) might just have struck gold at its Rutherfords Table property in Queensland.

The shares jumped 14% last week to 10.2p when news from the first-stage drilling programme showed strong signs of a massive first step in establishing a hyper-thermal deposit, said A & R chairman Robin Andrews.

Translated this means there is now a near-evens chance of Rutherfords Table becoming a major producing gold mine. The volcanic formation has trapped the gold just under the surface in a ball of sulphur instead of it running away as is often the case with alluvial gold.

Excitingly there could be as much as four million ounces of gold to be extracted with a minimum of one million ounces.

Either way the find, if confirmed, is sensational for A & R as it means some 50 million of revenue pouring into its coffers between 2007 and 2020 compared to its market capitalisation of just 4 million.

Admittedly a further 20 to 30 drills will need to be completed probably by autumn and the results analysed before the discovery can be fully validated. Then the lengthy process of a pre-feasibility study and bankable study need to be undertaken before any gold can be extracted.

There will be another announcement well before Christmas detailing these results. If positive the announcement will probably include a rights issue to fund development.

House broker Brewin Dolphin is expected to finally issue a note detailing A & Rs progress.

Hopes are high because Rutherford is right in the middle of two other world-class gold mines and all the infrastructure is available to keep costs down. Grades vary from 0.5 grammes to 10 grammes per tonne.

The company has three other world-class potential gold sites in Queensland at Diggers Creek, Ashton-Angus Valley and Eveligh plus some interesting acreage in Brazil and China.

Drilling starts at Diggers Creek at the end of May. The geology is similar to a one million ounce deposit at Cracow, mined by Newcrest.

A & Rs team of Australian geologists have been working on the sites for the past seven years assembling data and mining rights.

The only bad news is the failure of early drilling to find gold at Top Camp it might still be found lower down and no rain to fill the dam to allow 1,000 ounces of alluvial gold to be extracted at Rutherfords.

But as the philosophical chairman says: Consolation will come if further drilling confirms the source of the alluvial deposits are near. By then the disappointment at the delay in starting small alluvial production will soon be compensated.

Shares Says: The risk/reward ratio of buying shares in Angus & Ross is starting to look much more favourable with this announcement.

I'm in..

Citywire Tipped Angus & Ross at 9.25p. Here is their update hot off the press!.

16:17 Thr 13 May 2004
Angus & Ross goes Brazilian
Citywire speculative tip Angus & Ross gets a little less speculative as time goes on, and a little less cheap, with shares boosted again by news that it has bagged two mineral licences in Brazil.


We tipped the shares (AGU) in December at 9.25p for speculators only and said there was still time to get in last month at 10.25p. Today shares are up 0.125p at 11.625p.


Today the company said it has signed two licences, the prospective for gold and scheelite (tungsten) mineralisation, at Pedra Branca, in Rio Grande do Norte, Brazil.


The company is also setting up Angus and Ross do Brasil to manage the project, with Sao Paulo based businessman Richard Stevens as president and Bob Morrow ( ex Western Mining and a long term resident of Brasil) as geological director.


Chairman Robin Andrews told Citywire that the licences are for an area on a known structure, where there are two other major companies close by and rumours that Anglo American has been sniffing around. There is one existing mine in the area owned by Verena, a small Vancouver-based company, which is claiming to have found quite substantial mineral deposits, and this is in the process of being verified.


Andrews said that Angus & Ross had beaten several companies to the post with these licences because, by coincidence, he happened to be in Brazil at the right time.


The licences themselves are not costly at this stage, but clearly work now has to be done to start early exploration. 'If it gets exciting we'll probably see one of the majors come in,' said Andrews.


He said the company is making 'slow but steady progress.'


The news follows last month's announcement that the company had found evidence that the hard rock source of gold at one of its seven Australian prospects should be close at hand.


Citywire Verdict:


What value the shares in a company like this? Today's price still values it at just over 5 million only. But the thing about early stage mining companies is that no one can guarantee whether they will strike gold, or anything else they are hoping to find.


Andrews told Citywire in December that if all goes to plan, this ought to be a 50 million company in the next two or three years. But between then and now there will be disappointments, and then when there is good news, it will involve larger sums of money to exploit the finds.


Still, anyone that understands the speculative nature of speculating, should be reassured by the recent good news.