don't write off lree's, page-24

Shimmer

PEK’s deposit is massive, that is not being disputed

The point simply is it makes no difference how good your deposit is if you can’t get it into production in time - - just ask Arafura

Now as for PEK completion of the metallurgical tests will take years (not months) – and by the time PEK have cracked the metallurgy others will have beaten them to market and stolen the lions share of the available contracts

There will be no cream left by the time PEK complete the necessary metallurgical test work

When it comes to mining it’s “grade, grade, grade,” and NTU has it in spades – have a look at the comparison of NTU grades to our potential competitors on page 14 of the following report:-

http://treo.typepad.com/files/ntu_investment_thesis_and_valuation.pdf

NTU have 84% in the more valuable heavy rare earth category


Hi Tretch

I’m no expert on chemistry either, however what I do know from my research is that you can't bring these rare earth projects into production if you have not completed the metallurgy - and that work alone can take over 5 years

Northern Minerals management team with prior experience in rare earths recognised this from the outset, so in conjuction with defining a JORC they have also been sending drill samples for Metallurgical studies.

This has delayed Northern Minerals JORC but hastened their understanding of the ore, removing one of the main barriers to bringing these projects into production

Now Northern Minerals is well advanced in its Metallurgical studies, and whilst still with no defined JORC resource, is much closer to production than many of its competitors – you want to know how do I know this – well NTU have now stated as much in the last quarterly and most recent presentation with this definitive statement : "Results PROVE that metallurgy is simple and understood, using low cost magnetic separation"

Other rare earth explorers have not understood this, and in a traditional exploration sense raced ahead to drill a JORC - Peak Resources is the perfect example of this - they have proved up a massive resource yet Peak Resources preliminary Metallurgical test work announcement was on 1 February 2012

Again from Northern Minerals most recent quarterly they have clearly defined a Pathway to Production timeline clearly detailing dates for the items you raised.

In relation to native title Northern Minerals have already engaged the local aborigines and appear to be well advanced in this area – again refer to the last quarterly activities report – and for me I prefer to backing a miner on Australian soil than one based in Africa? What are you going to do when they impose black empowerment and confiscate your project – OK it might not be 100%, but I bet chances are high you will have to give 20% or more away if this ever gets off the ground.


++++++++++++++++++++++++++

Now I have done the best to answer your questions, but my question remains unanswered – so I repeat:-

There are no shortcuts in treating REE minerals, ... one must process out each REE in sequence in a very elaborate and costly process

Based on what other REE explorers have achieved, it is going to take PEK years to crack the metallurgy in order to bring this project into production

Avalon, have been working on their Metallurgy for years and have just put back their production date by about 2 years because they haven't cracked the metallurgy

So once again I really am interested to hear - what makes people think PEK can do in a matter of months what it's taking everyone else years to accomplish