matmor announcement out, page-13

EXCERPTS FROM:

http://www.proactiveinvestors.com.au/companies/news/8991/gulf-mines-sees-commercial-potential-for-iron-oxides-at-nowa-nowa-8991.html


QUOTES:

Two samples have been tested, one from each of Seven Mile prospect and Five Mile prospect.
Two tests have been carried out on the Seven Mile sample, which is high in silica
and both tests produced metallic iron.

The test from Five Mile prospect also produced metallic iron and the high silica content of the iron oxide produces a high silica iron
Gulf Mines said these are issues separate from the objectives of recent drilling, the results of which are still being analysed.

Graham Reveleigh, managing director (of ASX:GLM- Gulf Mines) said:
if this material is suitable for the Matmor process,
there is potential to develop a small iron oxide mining project on the companys prospects at Nowa Nowa. The development of such a mine would follow the construction of a suitable plant. ENDQUOTES


So we have this situation, according to my reckoning, and it appears to me as a clear horizon:
ESI and GLM have discussed the encouraging results of the Matmor applications to date
ESI and GLM have endeavoured to develop a business plan, with discussions already having progressed to the viability of, cost of and practical industry applications of the MATMOR process and which have then been promoted beyond the office.
The two companies have taken discussions from the office to the field and then back to the Lab for testing, to see if the process is: a) chemically possible to recover such Oxides,
which is a sweeping victory, re: this family of metals
b) To see if the recoverability rate is viable enough to
warrant serious commercial investigation and
implementation of phase two looking towards building
a commercial plant to capitalise on the discovery.

Its been indicated now, by the two companies, that the preliminary boxes are being ticked for Licensing Matmor to Gulf Mines (or building a partnership/investment with ESI may be the suitable option).

So the vision is there, the tests are in progress, the results will be self-evident and the next step will be a Memorandum of Understanding with Gulf Mines to build this plant the Director speaks of,
or it may be a direct Investment into ESI or thirdly, it may be another long haul (as with Tincom) while the two companies sort out the various feasibility studies for plant design etc, which will be a few years from materialising.


Cheers.