This looks like the start of a come-back for the company that appears on no new official announcements. The last information from Auryx Gold was released in mid-December and presented updated assay results from the company’s main property – the Otjikoto gold project in Namibia. Otjikoto has a current National Instrument 43-101 resource of 1.22 Moz Indicated at 1.34 g/t, and 0.71 Moz Inferred at 1.28 g/t.
Inferred Resources, as geophysics says, are the first level of quantifiable exploration and require further activity to be upgraded to the higher categories Measured and Indicated. Inferred resources may not be supported by samples or measurements. They are based on an assumed continuity beyond measured or indicated resources.
Unlike inferred resources, for indicated resources there is a geological evidence. Their quantity, grade or quality, are calculated from information similar to that used for measured resources. The degree of assurance is high enough to assume continuity between the points of observation.
There are several factors that speak in favour of a future upward movement of the company’s shares.
Canaccord Genuity, a well-known financial services firm with operations in research, sales, trading and investment banking, has AYX on its watch list for mining companies expected to provide above-average speculative potential in 2011. Further encouraging is the fact that Jennings Capital has a target price of $2.00 for Auryx Gold for 2011.
The financial condition of the company also seems to be sound enough. At the end of September 2010, Auryx had over 15.8M in cash and its total assets were well above the total liabilities – the net tangible worth of the business was about $45M. Somewhat worrying was the recorded net loss of $1.98M, seven times bigger than the one for the second quarter. The closing of a $34.5M offering at the start of December, however, surely makes things look much better for Auryx Gold Corp.
