Aultra Gold Inc. (AGDI) brings experienced mining expertise and practical business experience to the gold mining industry. Aultra is poised to take advantage of the currently strong gold market, while also structuring to prosper if the market changes. Aultra's business strategy is two pronged:
- Acquire and evaluate solid exploration targets in areas with potential for highly profitable ore bodies. Several such targets have already been identified and two are acquired.
- Exploit deposits with established resources for near-term development. Several such projects have been identified and one, Basin Gulch, has been acquired.
AGDI Corporate strategy:
- Acquire or discover high-grade, easily permitted and mined properties that allow inexpensive evaluation and development and offer the potential for strong cash flow. Such properties often don't fit the profiles for large companies and are often similarly ignored by smaller companies. Smaller companies generally are focused on properties that would make these companies attractive takeover targets for large companies, and can be more interested in promotion than production. In either case, high-grade properties with smaller known reserves have often been ignored in recent years, and represent attractive development opportunities with the potential to generate strong cash flow.
- Acquire or discover potentially large gold properties, such as Jungo and Basin Gulch, which AGDI's geologist originally discovered. Acquiring and advancing large properties, while more expensive and difficult to permit and develop, will make AGDI an attractive and visible gold company, and strengthen its stock value.
Background:
Ongoing mergers in the gold industry have left it dominated by a few very large companies with property development criteria that most projects at their current exploration levels can't meet. Additionally, the low gold prices that persisted for several years created a serious shortage of experienced exploration staff. Large companies find it easier to purchase reserves than to find them. This situation, coupled with the continuing depletion of reserves in existing mines, and strongly growing demand in Asia should create commodity shortages and high prices for many years to come.
Much of the exploration in the gold industry has been conducted by underfinanced "ore finders", who typically lack funding, business experience, and the partners necessary to develop any deposits they find. AGDI is strengthening its links with these ore finders, while conducting exploration and evaluation based on its own expertise. AGDI first identifies the best of these projects, and then adds value by focusing work on practical evaluation and expansion of the projects within an overall strategic business plan.
Keys to success in the mining industry:
Mining success is controlled by several key factors. The first key factor is the ability to find, recognize, and acquire good properties. AGDI has already demonstrated its ability to find exceptional properties. AGDI has other important strengths beyond the ability to acquire good projects. The next key factor for mining success is the ability to properly evaluate and develop an acquisition Aultra has the management and contacts to take a project from discovery to production. An overarching key factor to a company's success in the mining industry is its ability to finance and support itself in the marketplace. Aultra has an experienced management support team that understands market price dynamics and profit points, and has the ability to support the company in the marketplace.
Many projects fail because of the inability of management to time their development cycle to profitability and to market trends. This is another key success factor. In the last 30 years, environmental concerns, the continuing industry consolidation and a shift in investments from basic resource industries into technologies resulted in a flight of risk capital from this industry. For many years, even the best gold projects couldn't get attention or funding because of low gold prices and market indifference. Many experienced mining professionals abandoned the industry.
Today, the industry is in an exciting new growth period. The continuing surge of metals prices has created a renewed interest in mining, largely generated by strongly growing demand from Asia. Junior mining companies with the ability to take advantage of this situation have an exciting new opportunity for explosive growth. In an industry with a serious shortage of experienced exploration and mining staff, Aultra believes our proven expertise and experience will enable the Company to prosper and grow.
Pipeline of Projects: Currently Aultra is focused on its Basin Gulch and Jungo projects. Aultra also a rich pipeline of other projects on which it is actively working. A larger number of opportunities will be evaluated over the next year. Some of these projects, if acquired can be "company builders". The Aultra strategy focuses on minimizing risks by selecting opportunities that possess a high potential for success, few environmental hazards, and are practically and economically developable.
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