lets play hypothetical games, page-5

Took a small holding in these earlier this week.

As stated previously on this board, TeckCominco (WORLDS LARGEST ZINC MINER) and Xstrata have joined forces at the Lennard Shelf operation(zinc/lead), 250 kms from Koongie. THEY HAVE RECENTLY RECOMMISSIONED THE MINE, UPGRADED THE TREATMENT PLANT AND BUILT A NEW POWER STATION. Storage operation at Derby has been re-opened. Product is barged out to anchored ships in deeper water off Derby.

I believe TC picked up the lot (deposit, plant, treatment plant, accommodation village, airstrips etc) for $23 million from the receivers appointed to Western Metals.

Current mine life is only two years and further exploration has yet to find further economic ore.
They already have excess capacity to treat outside ore as they are campaign milling on a 2 weeks on/1 week off basis.

You would think one of the following two scenarios would aid in the projected viability of the Koongie deposit:

1. Ore is transported to Pillara for toll treatment.

2. AAR acquires plant and relocates it to Koongie Park.

3. Some form of JV arrangement is entered in to between AAR and Lennard Shelf or TeckCominco.

Either way there would be a skilled workforce ready to continue, which is an important factor in these boom conditions .

Just my two cents worth.