Drilling update for Boda East target zone which straddles ALK's Boda discovery. Strong visuals and mineralised zones which suggest they may have hit the edge of a mineralised system. Requires assays and further analysis to work outs what in the dirt plus additional drilling to test if there is something there or just a freak hit. If the start of te delineation of their own porphyry deposits, mcap could go up 5x to 10x from here. It also suggests this Boda area is a multi-deposit system which good for ALK too.

https://www.asx.com.au/asxpdf/20200805/pdf/44l7150mk99wt1.pdf

Raised to fund exploration in Boda east next to ALK. What many miss in the porphyry hype is the potential of Horn Island. There is an existing JV with SBM for exploration but AQX retained a carve out of the existing inferred 500koz resource and landholding that can support a mining operation. Based on my own desktop feasibility, the existing resource could support a 5 to 6 yr mine producing ~58koz p.a. With the use of ore sorting, in which gold is in sulphide vein mineralisation with barren host rock is highly amenable to ore sorting, OPEX can be materially reduced to $1250/oz or lower whilst CAPEX would likely be under $50m as the processing plant can be reduced by 60%. The operation at current gold price has an NPV15 of $198m assuming a 6yr LOM. SBM has the right to buy back the carve out area once a feasibility has been done and recent transactions range between 40% to 70% of NPV for buy outs of assets of this scale (e.g. EAR). AQX would stand to generate a windfall of between $79m and $139m from the buy-back. AQX can put themselves in the position to achieve this outcome for the low cost of ~$5m (RC infill drilling + Feasibility) with less than 9 months turnaround.