AXT - Argo Exploration

I understand your concern, although in this case AXT seems to be very undervalued below 4 cents, given its proximity to BHP's Olympic Dam, and the backing of a major (Xstrata). Cannot see this sitting below 4 cents for too much longer.

hardrunner said:

I understand your concern, although in this case AXT seems to be very undervalued below 4 cents, given its proximity to BHP's Olympic Dam, and the backing of a major (Xstrata). Cannot see this sitting below 4 cents for too much longer.

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Seems to be undervalued haha. But then again, so do a lot of stocks atm.

I have a buy order in, but am not concerned if I get it or not. Although, it would be good to average down incase we get a run (which is inevidable).

As soon as they make a decent discovery, Xstrata will snap them up. Only a matter of time really. Didn't intend for this to be a long trade, but not going to sell out at this point.

Shares - 82.8m
Options - Nil
Cash - $550k
MC - $2.2m

Intercept Hill
Argo – Xstrata Copper Joint Venture
● Xstrata Copper have advised commencement of a 2 hole drilling program at the Winjabbie East Prospect.
● The current program, based on refined geophysical models and increased understanding from prior drilling, has been designed to further test elements of the Winjabbie East skarn/iron oxide copper-gold (IOCG) alteration system with:
● The first hole to be drilled being designed as an attempt to intersect an interpreted growth fault between prior drill holes WJE001 and IHAD8; and
● The second hole being designed to test a modelled more magnetic area towards the south eastern edge of the modelled gravity body.
● Further drilling of the prospect will be subject to results from the current round of drilling.
● Rehabilitation report for 2011 drill sites lodged with DMITRE.


Toondulya
Argo 100%
● Planning for a Reverse Circulation (RC) drilling program of up to 20 holes and 2,500m is in progress.
● RC program to test a range of quality geophysical/structural targets beneath 40 to 70 meters of sand dune/soil cover.


Investment in Pantheon Resources
Argo 6.83%
● The operator of the Vision-Pantheon JV has upgraded its Woodbine play following the recent completion of an extensive two year study, performed in conjunction with the State of Texas Department of Economic Geology, comprising an analysis of data from 2,500 Woodbine wells, over 2,600 miles of 2D seismic and the acquisition of 3D seismic over producing Woodbine.
● The operator has concluded that its Woodbine play appears geologically analogous to the prolific AA Wells Woodbine field located to the west of its acreage.
● The AA Wells field has produced an estimated 20 million barrels of condensate and 415 billion cubic feet of gas to date. The JV believes its acreage may have the potential to host a similar size field.
● The JV’s Woodbine target is a gas condensate play. This makes it correlated to the oil price as the associated liquids usually trade at par or a premium to the crude oil price.
● Alternative development options under consideration - horizontal vs. vertical drilling

The value of the Pantheon Resources Plc investment stood at $860,611 at an exchange rate of 0.6507.
(This was reported at end of March quarter and may have fluctuated since)