riversdale finding 80m of coking coal..

on their 100% owned leases in Mozambique.its interesting to consider that even if the coking coal price halves from the top of over $300, its still a massive premium for producers like riversdale. i estimate their costs to be somewhere around $50-$60 per ton. the mine is due to be in production in 2010. Felix is also telling the market that the longer term for coal is strong. power generation and steel production wont be going away. iron ore is very hard in comparison as its a single use product. riversdale locking in Tata and $340m at the top of the market proves the quality of management and the resource base. the current price allows for the profitable Zac mine and the cash only. we are getting the 2.1 billion ton deposit for nothing. I went to a mining lunch during the week where riversdale presented. I found it interesting that they have put 12 holes in the leases next door and went through 80m of coal. perhaps the company can get 2-3 billion tons on that lease and do a similar deal with another company in the future. the company has endless flexibility for development. Its also becoming obvious that the new leases they are drilling could make the current lease with tata look like a sand pit.They intend to barge the coal when they ramp up. That's the cheapest way to transport coal any where in the world folks. Hoping to pick some more up if this nutty market sells if off back towards $2. They have applied for mining permission to start the development with the govt and i am hoping that's early next year. The govt has made it very clear to riversdale that this project is a tier 1 development and that they will speed this up. The ground riversdale has is superior to the CVRD land next door and cvrd paid US$132M just for the leases. dyor.