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To: ms.smartest.person who wrote (1613)	10/18/2006 11:17:51 PM
From: ms.smartest.person	Read Replies (3) \| Respond to of 3198

&#8362 David Pescod's Late Edition October 18, 2006 AURELIAN RESOURCES (V-ARU) $30.53 +2.03 More of the same good drilling results out of Aurelian Resources as today they announce 161 meters grading 6.5 g/t of gold. These are absolutely phenomenal widths and the grade isn’t too bad either. It will be interesting to see what most analysts think they now have, 8 million ounces of gold, 10 million or 15 million? Or even higher? Each hole you have with this kind of width and that kind of grade adds ounces very, very quickly and what many analysts are suggesting is the discovery of the decade, if not one’s career. Which of course is the good news. What could be the other good news is the recent first round of elections in Ecuador which saw the supposed pro-business candidate Alvaro Noboa, a billionaire businessman, lead Rafael Correa Delgado, who is described as a “leftist Chavez supporter”. Dundee Securities put out an interesting report on the Aurelian/political doings in Ecuador that is probably mustreading as they look at the 13 different candidates for president and takes a look at the top five political groups and where they stand. Note the chart which shows a bit of a bump here recently as people grew concerned about the goings on in elections and how it has recovered smartly after the pro-business guy won. The Dundee description of the two candidates—on Noboa they wrote, “A billionaire businessman, who has expressed support for the FTA, private investment plus relations with the Congress. He owns 110 companies and says he’s Ecuador’s biggest investor and has pledged to use his business skills to bring Ecuador’s poor into the middle class. Many Ecuadoreans have been attracted to his promise to provide cheap housing and create a million jobs in this small Andean nation of 13.4 million people, 76% of whom are poor, according to UNICEF.” Their comments on Rafael Delgado, “Leftist Chavez supporter in favor of boosting agriculture, micro-companies supported by loans and promised a housing plan to generate jobs. He has rejected the FTA with Washington, defended ties with Venezuela, Brazil, Argentina, Uruguay and Chile as well as pleaded for the strengthening of the Andean community and the Latin American integration. Has called for debt restructuring, disbanding Congress and the ouster of U.S, troops based in Ecuador… The election on November 26th will be important! TAHERA DIAMOND CORP. (T-TAH) $1.32 +0.04 There’s a lot of ugly looking charts out there these days of junior mining situations, except Tahera Diamond might be on the real ugly side of ugly. A few days ago their news release mentioned that their Jericho diamond mine, which was always intended to be a mediumterm life, rather small situation, is still not living up to previous hopes and continues to experience operational issues. According to news release, “The mine has not yet achieved the nominal design production rate of 2000 tonnes per day. The process plant throughput rate averaged approximately 1700 tonnes per day during the third quarter or 85% of nominal capacity.” Meanwhile, if that wasn’t enough—they also announce “the average grade of kimberlite mined and processed to date is approximately 25% lower than expected.” Needless to say, that didn’t make the analysts happy as TD lowers their target from $3.25 to $2.75; Westwind from $3.75 to 2.40 and National Bank from $3.00 to $1.75. Something you don’t want to hear though was tagged on to the end of the announcement as Tahera is assessing additional financing arrangements to fund its working capital requirements, it suggests. Oh, oh! Even more dilution? If there is one common theme about some of these Northern projects to be aware of, is the growing concern that the “sucking sound” you hear, is Alberta sucking in all the tradesmen available through much of Canada and inflating wage expectations to a high degree. Any project that needs to get built in the NWT, we figure, are going to see prices much higher than expected because of the competition for men skills and equipment from the Alberta Oil Sands projects. CGX ENERGY (V-OYL.U) $0.44 +0.02 Spanish oil producer Repsol announced that they will drill for oil and gas in Suriname’s offshore territories and announced a $100 million U.S. contract with Trans Ocean to execute two test drillings in Block 30 offshore Suriname. Drilling is expected to be between July and October. That creates a little bit of talk and a little bit of hope for CGX Energy, which of course, is offshore Guyana and on trend. But just when does their border dispute get resolved? CGX may have 9 million acres offshore Guyana and 13 to 15 targets, but just when will they get to drill them? Disclosure: Aurelian Resources: Canaccord Capital covers this stock and has a Speculative Buy rating on it. (Speculative buy: Stocks bear significantly higher risk that typically cannot be valued by normal fundamental criteria. Investments in the stock may result in material loss.) If you would like to receive the Late Edition, just e-mail Debbie at debbie_lewis@canaccord.com