market is waking, page-8

I will try Forestfield ,my area of knowledge in resources is limited I really prefer industrials , balance sheets , and cash flow businesses to invest in.

LRS in its presentations advised that Guado really was its flagship project , and so far have spent between $7-10 million getting to a JORC situation and proving up the numbers .

LRS did this so the company could seek the funding and assess a fair JV discussion .

A JV partner will need to spend around $100 million to get the project to a position of being able to produce andalusite, magnetite , some gold, some rare earth's from the 1.3 billion tonnes of resource at a 5.6% heavy metal content .

If you discount the gold and rare earth's income completely the value is in the 25% of the heavy metal being andalusite and 25% being Magnetite .

20 million tonnes per annum over 1.3 billion tonne resource will give an infinite mine life

20 million tonnes at 5.6% heavy metal is 1.12 million tonnes of heavy metals

25% is andalusite and is valued at $300 -450 per tonne
25% is Magnetite and is valued at $100-125 per tonne

Using 33% operating cost ( Peru is a low cost environment ) and receiving $300 and $100 per tonne price each 50% JV partner generates around $17 million per annum free cash flow per annum to each JV partner .

On that basis the opportunity to increase plant size and process tonnage per annum would increase and as such ...the calculator then blows up

Just my opinion