new institutional shareholder, page-14

Wole64 the scoping study defines the main parameters to investigate further or work with in the PFS, DFS and BFS. It is the base metrics of the project. It normally has Jorc data to work with but I expect PEN will be using the estimates, known drill results and collated historical data initially.

In a very broad summary:

The Scoping Study is defining the base metrics to work with. Firstly in the Preliminary Feasibility Study (PFS), of which is a high level engineering study with quite wide parameters and % error margins quite often around +/- 30-40%. The also identify various engineering design options. I would expect this to be done around Jorc.

If that is satisfactory and acceptable to the board then they would normally move to a Definitive Feasibility Study (DFS). Same as the PFS except now defining in more detail and costing the selected design option/s using more detailed design metrics and financial modelling. This will now be getting the error margin down to around +/- 15-20%. From this they will select the final option and move to BFS.

The Bankable Feasibility Study (BFS) will be the final design and financial modelling that will be presented to potential financiers. The error margin now down to around +/- 10%.

I doubt very much they will skip the PFS stage, although as they have the original plant detailed design to work with they may move from PFS straight to BFS. They will definately not move from scoping to BFS IMO, I would be very surprised if they did.

If I may, my forcasts for 2010...

The first truly big move in sp for PEN I would expect to occur around April to June...if Jorc backs the forecast outcomes of the PFS, then my forecast is for PEN to hit over 10c and remain above that level.

My forecast sp high for PEN in 2010 is ~15c

Selamat Hari Tahun Baru 2010 ;)