Aurelio Resource Corp (fka AULO)

[MUSHROOMKING]

I got this from Diane Dudley


The Commodity Supercycle Report
www.themarkettraders.com
Week of January 12, 2008, volume 2, edition 2
(FOR SUBSCRIBERS ONLY)
Aurelio Resource - Putting S.E.
Arizona back on the Map
As I write this week's letter, I am sitting in
McCarron International Airport having just
arrived on a flight from Tuscon. South-east
Arizona is a special place for me and I have
been making yearly visits to places like
Tombstone, Bisbee, and Douglas for nearly
7 years now. For those of you who have
never been to this part of the world, I
strongly suggest a visit. Fly into Tuscon and
point your rental car east along I-10 in the
general direction of El Paso, Texas. Exit I-10
at Benson, Arizona and get onto Hwy. 80. If
you are feeling a tad hungry at this point,
stop in at Reb's Diner and slide up to the
lunch counter for some good old fashioned
home cooking. Continuing on, your drive will
take you through the tiny hamlet of St. David
and before you know it the historic town of
Tombstone will be visible on the horizon.
Watch for Boothill Graveyard on your left
where a good many gun-slingers of fame
and fortune were buried with their boots on.
On your right is Main Street where you can
see daily re-enactments of the Gunfight at
OK Corral. Once through Tombstone, keep
enjoying the rolling expanse of high desert
as you continue in a southerly direction.
Soon you will begin to climb and the terrain
will take on a more rocky appearance. You
will go through a tunnel and as you emerge
on the far side prepare to be amazed. What
lays ahead and below is the historic mining
town of Bisbee and off in the distance that
gaping red hold in the ground is the
Lavender Pit - at one time the largest open
pit Copper mining project in the world. When
Phelps Dodge ceased mining operations in
the Bisbee area in 1977, the entire town fell
into disarray. Before too long, California
folks ( ie the hippee crowd) found their way
to Bisbee and bought old abandoned
company houses for $5000 each. Next
came the entrepreneurs like the one from
New York who bought the old Copper
Queen Hotel and the one from San Diego
who bought the old Club 400 building and
turned it into condominiums. And today the
tourists come in droves to walk the winding,
narrow streets in search of pottery,
gemstones and oddities like locally made
Killer Bee Honey. Oh, and don't forget the
biker crowd dressed in black leather and
driving their Harley's. You can find these
free-spirited, and very friendly folks
congregating at the Old Tymer's Saloon run
by my good friends Charlie and his wife Gail.
Indeed Bisbee is a very quirky town with
something for everyone. But more
importantly, it is a town that will leave your
soul feeling rested and right with the world.
This particular trip to Bisbee was decidedly
mining oriented. I spent several days driving
about looking at where various exploration
companies are once again exploring for
Copper. I even found one that is one the
verge of production and I will write about it in
my next edition. On one of my journey's I
ended up east of Tombstone not too far from
the now abandoned towns of Courtland and
Gleeson. A firm called Aurelio Resource is
busy exploring in this area. But, Aurelio is
not just another junior company aimlessly
drilling holes in the ground and talking a
good story. The folks at Aurelio are the real
deal and their Hill Project near Tombstone is
their flagship effort.
The Hill Project is a Copper-Zinc concern
that right now consists of 3 known areas of
mineralization. There are 5 other areas that
are crying out for the drill bit. The 3 known
areas of mineralization are the MAN, the
Courtland and the South Courtland areas.
This particular part of Arizona is not an
unknown quantity. In fact, back in the 1980's
Santa Fe Pacific Mining was very active with
the drill bit. Sadly enough, Santa Fe could
not escape the shackles of low metal prices
and their drilling efforts went unrewarded.
But, Santa Fe's 64,000 feet of drilling is now
making the folks at Aurelio smile. Thanks to
this old drilling work done by Santa Fe,
Aurelio was able to issue a press release
back in October that summarized the MAN
area mineralization as follows:
The independent mining engineering firm
that authored the report also concluded that
approximately half of the MAN deposit
consists of chalcocite, which could be
processed by low-cost heap leaching and
SX/EW recovery.
Results on the South Courtland area are
now starting to come in. Take a look at the
following data from just 2 holes.
Drill Hole Length Zinc Copper Silver
BR07-30 300 ft 1.30% 0.12% 1.7
gr/MT*
Including: 160 ft 1.88% 0.14% 1.8 gr/MT
BR07-31 125 ft 0.88% 0.32% 4.6 gr/MT
Including : 55 ft 1.83% 0.53% 3.6 gr/MT
In particular take a look at the Zinc grades
and Copper grades, but more importantly
take a look at the thickness of the
mineralization. Any time I see grades like
this I get excited. When I see grades like this
over such thicknesses, I get a warm fuzzy
feeling all over. This is the stuff that mines
are made of and right now Aurelio's
geological team is estimating that the South
Courtland area is open at depth and to the
west. Keep a close watch out for further drill
results from South Courtland.
Drilling in 2006 on the third area - the
Courtland area shows equally impressive
results. A quick look through some old Press
Releases shows grades of 0.93% copper
over 285 feet and 0.61% Copper over 210
feet. Again, results that make me feel very
good.
The following photo shows what the terrain
looks like in the area. What excites me the
most is the fact that you can easily drive
right to these properties. Power for an
eventual mining operation is nearby as is
other infrastructure such as
accommodations for employees in places
like Pearce and Elfrida.
Right now, Aurelio has only 34.5 million
shares outstanding. The following chart
shows price action over the past year.
These are tough markets right now and
Aurelio has been ravaged along with many
other junior resource stocks.
Oxide Chalcocite Sulfide Unclassified Totals
(0.10%
Cu cutoff)
(0.10% Cu
cutoff)
(0.20% Cu
cutoff)
(0.20% Cu
cutoff)
(or
averages)
Tons: 328,000
ST
29,436,000
ST
28,919,000
ST
5,074,000 ST 63,757,000
ST
Copper
Grade:
0.51% 0.28% 0.55% 0.63% 0.43%
Zinc Grade: 0.49% 0.05% 0.25% 0.04% 0.15%
Lead Grade: 0.04% 0.02% 0.03% 0.01% 0.02%
Silver Grade: 0.002
oz/ST
0.034 oz/ST 0.087 oz/ST 0.054 oz/ST 0.060
oz/ST
Gold Grade: 0.002
oz/ST
0.002 oz/ST 0.006 oz/ST 0.005 oz/ST 0.004
oz/ST
"Copper-
Equivalent"
Grade:
0.76% 0.33% 0.75% 0.71% 0.56%
At current prices, Aurelio has a market cap
of just over $10 million. But, this market cap
does not even begin to come close to
reflecting the value intrinsic in just the MAN
property alone. I will conclude this brief
write-up by simply saying that Aurelio is an
under-recognized story that deserves a
closer look. Things are happening in S.E.
Arizona once again and Aurelio is well
positioned to benefit.
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