why the lack of interest, page-24

BMN has traded down 15% since the resource announcement of 72.2 m lbs. Over the same time PDN hasn't changed and EXT has risen 20%. These companies are affected by market sentiment & U price the same as BMN but they have had annnouncements that have excited or pleased the market.

It seems the market was expecting the BMN resource to be better than 72m lbs (maybe as high as 100m lbs) When the interim resouce was "only" 72 the SP started a slow slide down.

I also think that the adjusted resource figures presented by some HC members are once again overestimating the actual resource. The reason why the radiometric data was reduced by 30-40ppm is because this was what the statistical correlation was between the lab data & radiometric data. They then took a safety margin by multiplying by 0.85

Therefore I feel that the actual resource after lab data will be (59.3/0.85) + 12.9 = 82.6. This result is almost the same as taking the lab data ppm of 234 and applying it to the inferred resouce which gives (59.3 X 234/197) + 12.9 = 83.3.

Any increase above this amount will come from the additional depth 300m -> 400m and any additional holes that have since been drilled and were not included in the January interim resource. Looking at the increase in depth and additioanal holes it seems they will eventually make the magic 100m lbs.

So until they do get the magic 100m lbs the SP wont do anything exciting and will probably track lower as there are other concerns such as the high court action and question marks over power & water supply.

Management are doing the right thing by steadily working towards a mine and they seem to have made a good decision in employing the new Chief Operating Officer.


My only suggestion for them at the moment would be to take a rig and drill a couple of holes at Ombuga South as the results might be exciting. Look what one good hole did for EXT. Otherwise there wont be anything much to move the SP until the next revised JORC a few months away.