Ann: Update on Area 51 Exploration Program , page-3

Hey Duke.
If there is good stuff there how hard will it be to get out of marble. I seem to recall being told that it could be excavated with a scraper but that doesn't sound right now.

These are notes I made during a conversation I had with someone from AGY back in April.
I have scrubbed out any names. I don't think anything I wrote down was a big secret at the time.

I have no idea whatsoever if what I was told then was crap but I thought then that maybe I will be rewarded after 15 years in AGY.

AGY Graphite project.

Why graphite?
- Is in demand metal. Currently $2500 - $3000 per ton.
- Will continue to be in demand for many years to come
- Cheap entry in a stable country

Potential of the sites.
-Multiple targets
-The maps show the targets. (Govt magnetic & gravity data)
-Shit loads of stuff lying about all over the site, not just outcroppings.

xxxxxxxxxxxx I think from xxxxxxxxx, says that if they find major concentrations the sp will go from $0.05 to $5.00 very quickly.

The material is from 50 to 100m thick.

Minimal infrastructure costs.
- Everything can be done on site.
- Crushing, screening, flotation. (Benification is via paraffin)
- After processing on site metal can be trucked out.

Cost of production.
- $10 to crush
- $10 to floatation
- $30 profit per ton
If they processed 2mt per year (40k ton a week) that would be $60m profit and 100% for AGY
The plan would be to process a lot more than that. This is presuming a 10% grade per ton.

When will it start?
- Due diligence is completed. Was carried out prior to signing up.
- All the legal stuff has been sorted.
- All the quotes for the geophysic’s etc have been sent out.
- Staff are on site this week to begin field work.
- Will begin sampling next week.

Have purchased two Namibian corporate entities to run project through (Pty Ltd’s)

Funding
- Down the track will have to raise money.
- Maybe via a rights issue so shareholders can participate.

Given that AGY has now been taken over by BAC I guess the raise money bit might not be so pressing.
As I have been in AGY for 15 years I think I have heard it all but this story did make me sit up & take notice at the time. I don't know how the story stacks up now against the photos of the drill targets.