major corporate transaction , page-37

Kizza

The current targets in the drilling of stage 1 and 2 add up to 250 million tonnes. There is a lot more of the island to explore after that. Look at a map of Hardstaff Point then think how far does it go?? The water will not be a problem.

This is premium quality ore. Pure Magnetite is 72% iron, PLV's mag is from 71.5 to 69.5, it does not get much better, the large grind size is also a bonus as it reduces costs and doesn't restrict it's use.

One thing that you need to take into account is mass recovery. This is around 40% for the mag so this reduces the tonnes to somewhere near 100 million tonnes of concentrate plus some 20 million tonnes of DSO at Isthmus. Mass recoveries will probably increase as the flow chart is developed to optimise recovery. WHIMS should show a better recovery also.

This would be sold at a large premium to the spot price, think of it this way, PLV's ore is the scotch that goes into the scotch and coke (lol) so it would be blended with the lower quality ore (from other miners) to bring the grades up and reduce the overall contaminants. PLV has virtually no contaminants in the cons. This is then fed directly into a blast furnace.

I look at what an orebody would be worth when mined not the igv, so lets say 10 Mtpa.

MGX currently have a PE of 20.

Assuming a mining rate of 10 Mtpa at $15 per tonne profit to PLV, on a PE of 10 that is a share price of $3.75. This allows for 200 million shares on issue to allow for some dilution. The amount of shares on issue may be a lot higher when mining commences but the figure of $15 per tonne profit and the PE could be way low.

The market will wake up one day.

Interestingly the 70 cent level is just about spot on the 23.6 fib level of the retrace from $2.50 to $.014 so no wonder it is resistance, the next levels that I have are 104 then 132, then it goes 160 200 250 395 486 631 1014. The 486 is my target, for now.

FYI

Market cap should be calculated at 103 million shares not 78 million, there are some options.

200 million cap ex would see a large scale mining project underway, small bickkies imo.