short term trading week starting - 29th jul, page-76

Entry for STT list

SEO FA

Copper in Mongolia
Gold in WA
Market cap $560k

Old tip expired today and still plenty upside so am re-entering it.

For $500k market cap you get:

- $500k cash

- A large copper-gold porphyry project in Mongolia. And not just any porphyry project, but one located in the same copper-bearing belt as Rio Tinto's giant Oyu Tolgoi porphyry project.

Rock chip samples of 21% copper and 34g/t gold have been retrieved from the tenements, and Sentosa are currently reviewing data from an airborne survey just completed to assist in selecting drill targets.

Have a read of these five short paragraphs from Rio Tinto's website:

'Oyu Tolgoi is one of the most exciting developments in copper and gold mining for several decades. As well as containing reserves and resources that make it one of the world's largest undeveloped copper-gold deposits, the project will have a transformative effect on the nation and people of Mongolia. By the time it reaches full production in 2020, it is estimated that Oyu Tolgoi will be responsible for over 30 per cent of Mongolia's GDP.

Oyu Tolgoi is situated in the Southern Gobi Desert, 100 kilometres north of the Mongolia-China border and 550 kilometres south of the Mongolian capital, Ulaanbaatar. Oyu Tolgoi is jointly owned by the Government of Mongolia (34 per cent) and Turquoise Hill Resources (66 per cent). Rio Tinto owns 51 per cent of Turquoise Hill. Since 2010, Rio Tinto has also been the manager of the Oyu Tolgoi project.

The first major discoveries were made at Oyu Tolgoi in 2001. Independently verified estimates indicate that Oyu Tolgoi contains reserves of more than 27 million pounds of copper and 13 million ounces of gold. The scale of deposits at Oyu Tolgoi is expected to allow the project to operate for over 50 years.

Oyu Tolgoi is forecast to begin commercial production in June 2013. The project is being built in several phases. Construction of an open pit mine and 110,000-tonne-per-day-capacity concentrator is now complete. The underground section of the mine, which contains up to 80 per cent of the value of the project, is scheduled to begin production in 2016.

When the mine is fully operational in 2020, Oyu Tolgoi will produce an average of 450,000 tonnes of copper and 330,000 ounces of gold per year as well as byproduct silver and molybdenum. In its initial years, ore from Oyu Tolgoi will be processed into concentrate onsite and then shipped by road to international markets.'

But wait, there's more.

You also get the Jaurdi Hills gold project in the premier gold producing region in Australia.

Drilling results from a few months ago include 17m @ 5.5g/t gold. So it's far from a dud.

This description from Sentosa's website www.sentosamining.com.au

'The Jaurdi Hills Project tenements are centered about 40 km northwest of the town of Coolgardie, within the Kunanaling District of the Coolgardie Mineral Field, Western Australia. In total, the Jaurdi Hills group of tenements currently comprises 39 live prospecting and mining licences (7,609 hectares), 3 applications for prospecting licences (427 hectares) and a single granted Exploration licence (E15/1061) comprised of 4 licence blocks (1,180 hectares) in application.'