joke, page-52

re: grades/tonnage/prices/demand/supply/profit Many unknowns to work with and that is why we look at people with a good track record to make a call on the above. However, it does not take an Einstein to see that the equation for determining profitability of a mine is rapidly changing and what makes BLR even more attractive is that it is close to existing infrastructure ( 100 Km East of Broken Hill ).
When Wood and Haynes embarked on this project about one year ago the price of copper was hovering around the $3000/tonne mark. Today it is close to breaking the $5000/tonne mark. That is a huge increase that many experts thought would be unachievable. Look at the futures contract for copper and you will see that in all likelihood these prices will be exceeded. So, strike one to Wood and Haynes. They called it right.
Once they secured the tenement they completed an extensive ground electromagnetic survey over the Grasmere Copper Deposit and once the geophysical data was analysed their suspicions were confirmed that the Grasmere Copper Deposit may in fact extend more than TWICE as far as previous explorers had estimated. Strike two to Wood and Haynes. They got it right again.
They were able to anticipate a renewed interest in the area by other miners.The Koonenberry Belt has recently become a priority address for a number of nickel explorers including Inco Limited, which now holds extensive exploration licences covering the northern end of the Koonenberry Belt, immediately to the north of Black Range’s tenements. Mithril Resources Limited, which is also understood to be targeting nickel sulphide mineralisation, has recently taken up the balance of the northern end of the Koonenberry Belt. So they got in early. Strike three!
They believe that there is considerable potential to discover nickel sulphide bearing mafic-ultramafic intrusives at the Company’s Koonenberry Base Metal Project. Why bet against what is proving to be excellent judgment on their part? Will the price of copper keep going up. Traders here and overseas seem to think so.
"We pointed to Frontera Copper [TSX:FCC ], then trading at C$1.99 as an example of an overlooked situation. Today, FCC closed at C$2.60 per share, and clearly has responded somewhat to rising prices."
"Constellation Copper [TSX:CCU ], a company just on the cusp of copper production. At the time, CCU shares were changing hands at C$1.16 - today CCU closed at C$1.97, having just hit a high of C$2.13."
" Quadra Mining [TSX:QUA ] was given a mention as shares languished at C$4.90. Today, QUA closed at C$6.37 on the Toronto Stock Exchange."
"And don’t count out $2.50/lb copper - the ‘experts’ can be wrong for a sustained period if the Chinese juggernaut continues its tremendous and inexorable march towards a better standard of living."
"Friday, January 27, 2006 - FreeMarketNews.com by staff reports A study conducted by Yale University estimates that there isn’t enough strategic metal in the world to meet rapidly expanding demand.The study outlined historical supply and demand figures for metals such as copper that are necessary to build a modern economic infrastructure. Massive amounts of copper are needed to create a power system, and construct buildings. The researchers argue that despite the recent increase in prices, metals have not priced in the probable long-term shortages in industrial metals. It will take time for the markets to catch up with fundamentals."
What was not considered easy pickings by Rio many years ago may in fact turn out to be quite a profitable project for BLR.
Will it be strike four, five and six for Wood and Haynes? Remains to be seen. But I'm not betting against them.
DYOR