$15m investment in rxl current cap. $18m, page-12

Meerkat is always good value to have around. I think it is healthy for the discussion to always have a devil's advocate....LOL only problem with Meerkat is that on occasion he can overstep the realm of Devil's advocate into the domain of full blown anti-christ.....

Reasons that RXL is 7c.

1. RXL is 7c because it is not 3.5c like it was before Teck resources came on board.
2. RXL is 7c because it is not 1.5c like it was before a deal was done with Rio Tinto to remove the lump sum payment on decision to mine
3. RXL is 7c because it is not yet 20c because Teck have not yet formalized the agreement with RXL let alone put a drill bit in the ground......

And as for RXL being undrilled and unproven.....from a recent presentation ....

? Sedex Deposits are >50%
of world?s Zn reserves
? Only 15 Sedex deposits
worldwide (out of 136) are
>10 Mt contained Pb-Zn
? Myrtle is currently ranked
~#40 in the world
? Already in the top 1/3 of
deposits worldwide
? Realistic target is >10 Mt
contained Pb-Zn

Now Meerkat, the devil's advocate, will tell us that just because Ian Mulholland produces a glossy presentation and tells us that Myrtle can realistically be in the top 15 Zn sedex deposits in THE WORLD we should not take that as gospel....and he is absolutely right (which gets back to why Myrtle was recently only 3.5cps)......However Miine posted an excellent kitco article last week from 2006 which discusses what to look for in a budding junior. One thing we should be looking for is a major like Teck coming on board. The article goes on to point out that the majors aren't stupid and in fact are very hard to convince...also they are not lacking for choice amongst junior players all vying for exploration dollars from the majors.....the market knows this and this is why RXL is now 7c and no longer 3.5c.......

But when the drilling is done, the asset has been proven and JORCed RXL will be much much higher than 7c......

......and what would be the point of buying it then ??