botswana licenses, page-13

Spaceboyc, I was suspended when you put that superb post together, so I didn't get a chance to chime in, but I think its worthwhile bringing this discussion back to the forefront a few weeks on.

First up, as per the tables above, Asenjo managed to JORC 2.35Bt of I+I resource over 61kHa. The Moruple Main Seam is roughly 70m-100m below the surface from what I can gather via other sources, and the Taukoma seam a little further down. Impressive.

Our Serowe tenement (the two blocks on either side of Asenjo's as per the map above) in the same area is 70kHa so one would assume we are a fair chance of JORCing 2Bt from there. The coal quality seems pretty reasonable, middle of the park sort of stuff like what AFR have. A resource of this quality is being priced at about 5c/t by the market at the moment; see AFR and HDG.

Then we have our Kweneng Project to the south, and it lies fairly close to AVA's tenement. For those who haven't checked out AVA, their coal is an immature breed with a low calorific value. It's useless. We could get lucky and tap in to some higher quality stuff which is what CIC Energy identified, but let's not hold our breath!

Ultimately, what we're probably looking at is this...

~2.5Bt JORC from the Serowe tenement, and we hold on to a majority of this going forward. We'll probably get some coal defined in the Kweneng tenement, but it will be so low in quality that we may as well hand it back to the original land owners. That will account for 27kHA of the 48kHA that we have to hand back as per the agreement; we will have to relinquish about 20kHa of Serowe, or roughly 30%. Most likely we will give away the coal to the west where the coal seams tend to dip deeper than 200m. In other words, even though we would hand back a seemingly high amount of good quality coal in Serowe, we would ultimately hold on to the pick of the bunch (shallow, <150m, CV=18MJ/kg++).

70% of 2.5Bt would still leave us with around 1.8Bt of shallow resource in Botswana, which would be worth around 25c/share on a peer evaluated basis in 6 months time once all the corporate matters have been dealt with.

We're currently trading at 20c/share with South African assets to boot, and the potential for that highly touted move into coking coal.

Hmm...

...and some on here are waving their hands in the air saying it's time to sell. Somehow I don't think they have truly weighed up the value in this company at current prices.