don't look back, page-37

BeerBaron

Your assumptions are a little incorrect, just because the grades are higher does not mean they have to blast half the rock, transport half the ore etc, dig up half the rock etc etc.

Although the grades are higher the resource is still at the same depth. They still have to move exactly the same amount of overburden to get to the resource. The strip ratios therefore will be exactly the same. The difference will be at the processing end and mine life. Obviously higher grades will equate to greater recoveries, lower costs and higher output (as they only have to process less rock rather than treat a load more rock).

Also in your post you are now eluding to a takeover at more than $14 per pound, this figure just gets ramped up more and more every single day. I have seen people now quoting RIO takeover at 1 to 1. This is a little over the top IMO.

The figures been bandied around are massive. If you want a realistic valuation go back and read some posts prior to the massive move north EXT had.

Before you shoot me down, I am not downramping, I just don't think you can expect a takeover offer of 4 billion plus overnight or whatever the valuation is up to tonight.

It will take time to drill out the resource. I also dare mention that what if the resource does not extend further south pas t zone 3. What if the resource does extend south but dives under more cover, from the depths moving from zone 1 to zone 2 is certainly gets deeper and narrower. A resource at depth will translate to higher costs.

I personally expected the latest round of drilling results to be higher than they were. Well maybe not higher grades, but larger intersections. But geology does that.

I am only posing questions here not attacks remember. Disc I do not hold EXT but am considering buying back in around 2.50-3.00 region. Which I might add would still have a market cap of 500-700 million odd.