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Strategies & Market Trends : Ride the Tiger with CD -- Ignore unavailable to you. Want to Upgrade?

To: Land Shark who wrote (54318)	6/10/2006 7:52:04 PM
From: Brinks	Respond to of 312759

Long ARU and ORR. ARU too the moon !! "The FDN discovery is very quickly taking on world class potential with, based on yesterday’s results, significant higher grade areas." Canaccord Capital June 9, 2006 Aurelian Resources (ARU : TSX-V : $18.27) - Speculative Buy - Target: Under Review \| Comment: Aurelian reports 189 metres of 24.0 g/t Au Aurelian released the assays from a single hole, CP-06-57, located 100 metres north of CP-06-56. The results included 189 metres averaging 24.0 g/t Au beginning at 196.3 metres on the drill stem. There were several higher grade intervals within this section including 11.5 metres at 148 g/t Au. Two additional holes were drilled on the same section line as hole CP-06-57 and results are pending from these holes, numbered 58 and 59. We understand that hole CP-06-60 is nearing completion 100 metres further north of holes 57,58 and 59. Two rigs are active at site and in discussions with management the company does plan to “scissor” a couple of holes shortly. This scissoring will see the holes drilled in the opposite direction, from east to west, in order to assist in defining the true thickness of the results to date. Yesterday’s results represent one of the best drill holes we have seen in a very long timeframe (past decade). The strike of FDN is now 400 metres and we understand hole CP-06-60 is a further 100 metres to the north. The FDN discovery is very quickly taking on world class potential with, based on yesterday’s results, significant higher grade areas. As the zone appears to be coming closer to surface towards the north there may be potential for open pit extraction for some of this prospect though, again, this is purely an hypothesis at such an early stage of exploration. Valuation is very difficult to estimate given the moving target of the size and grade of FDN, coupled with the current limited number of holes completed. We are maintaining our SPECULATIVE BUY recommendation – our target price is Under Review pending further drill results. Under the assumptions noted in the Impact and Analysis section of this comment, at a 1.5 times multiple and employing a C$ to US$ exchange ratio of 1.0:0.85, a share price range between $18.25/share (assuming 3.1 million ounces in situ) and $29.50/share (assuming 5.0 million ounces in situ) can be calculated. stockhouse.com