Many may not realise or even understand that the MNS JORC is made up of only 2% of the tenement.
Basically the 180,000 ton contract per year to provide graphite to MNS customers will be fulfilled by only using 2% of the tenement. MNS could actually supply 250,000 tonnes/year for 40 years before they would ever have to find more graphite based on that 2% alone.
Also when MNS conducted its drilling, most of the drill holes ended in graphite. Had MNS of continued drilling deeper they could of easily increased maybe even doubled their JORC based on the 2% area of their tenement. (Refer to previous announcements outlining drilling results.) In his CommSec interview Frank subtly highlights how little of the tenement has actually been drilled to achieve a 180,000 ton/year off take agreement.
No doubt had MNS continued to drill it would be sitting on the largest proven graphite resource in the world. But for what purpose? It would of been a pointless endeavour wasting precious time and money.
Unlike SYR and TON, MNS is blessed with a very pure and large flaked resource. This MNS's business case very unique and very very profitable.
MNS management must be congratulated for going against the grain of others in the industry and not trying to prove who has the largest resource but rather fast forwarding the process of explorer to producer. Obviously this has meant of SP has not increased as rapidly as other Graphite explorers who have been announcing large numbers. But once MNS start producing, the sales of graphite begins and the profits are shared amongst the investors(dividends) their SP will also be true reflection of what MNS will be worth. Many multiples of today's SP.
So for long term holders who actually understand the graphite sector... Soon there will many happy times!
