On the issue of financing.

ARU is currently sitting on sufficient cash to take it through the early development stages including the decline/adit and early underground workings. The real cost of development starts when they shift to infrastructure expenditures (power lines, road development, site development, capital preorders and of course construction costs). By that stage they will have developed a bankable feasibility study. They will use that to negotiate debt financing with the banks. Don’t expect to see any more equity issues from ARU.

On the issue of Deposit size.

For the most part what we saw today was what you could expect to see. The results are very positive in the 3350N and 3450N infilling but not out of line with the results from 3400N. Without access to the ‘resource model’ we can’t say for sure but it looks like the mineralization is stronger on 3350 and 3450 then you would expect from the grades on 3500 and 3300. That would probably increase the ounces in that core area if recalculated but not by a lot (10,000’s vs 100,000’s of ounces). The step out to the south on 2500 may add a couple hundred thousand tonnes but as a single hole with an ‘unexpected vein’ it may also mean nothing. The hole on 3800 basically shows that the deposit is truncated by the western fault at depth and that the mineralization doesn’t continue at depth to the east.

Overall the impact is that the infill holes increase confidence in the mineralization in the core of the deposit. The holes do not add significantly to the tonnage or grade (as good as I can eyeball without the actual model. The step out to the south is interesting but only more holes will tell if it has any continuity to it. The hole to the north can be seen as a negative in that it reaffirms that the deposit tapers at depth and is truncated.

On the issue of Manipulation:
Today’s results give lots of fuel for the manipulators to use. While the results at first look fantastic in reality they don’t add much. After people digest them they basically find out that the gold that they expected is where it is. If they were hoping for holes that would add to the tonnage today results didn’t. No big step out discovery, closed off a depth, no western fault zone, no new discoveries. So if people were hoping for fuel from the news release that would drive the stock they didn’t get it and now the MM drive the speculators out of the stock and the price falls. Lots of buyers hanging around to pick them up (at their price)