Alliance Energy Ltd This little Gold Specky is currently trading at 4.5 cents and I believe will soon be trading a great deal higher. WHY? Currently producing gold from its gold plant at Maldon, it has for the first time in many years an income. Gold pour started in late October and continues to produce from Tolleen some 80k away but will soon enter the Nuggety Reef area that has recorded over 300,000 ounces of gold in the past and recorded intersections of 45.5g/t at 1m and 80g/t at 0.8m. The company owns 100% of its Maldon plant and has a share arrangement with the current operator with a royalty and profit payment system to AGS.
Alliance is debt free and runs on the smell of an oily rag. Its admin/wages last quarter came in at 80k. It has shares on issue of only 52mil. The top 20 shareholders own 51% of this 52mil. They have been trying hard to get a rig that can drill at depth in their exciting Gawler/Craton area which has some standout geophysical targets. This is now well overdue and should by all accounts begin in the very near furure. TAS resources is in the same area and has had a mighty run, with good news AGS could do the same.
The company recently raised 236k towards drilling, this was disappointing however as it was looking for over 400k but has enough for a decent drill and income from gold pours? What I really like is the Directors did not issue a squillion shares at low price and contibuted with their own cash. AGS does not have a great deal of cash, I estimate approx 500k inthe bank and nil debt so it certainly is a specky play. Its nice to know it has a cash flow though. I am a shareholder, but believe this puppy is worth the watch list. If you would like to research they have a good website at www.alliance-energy.com.au. Cheers Pumper
AGS Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
