updated jorc, page-12

Hi All,

The trading halt, IMO, is related to a JORC resource for coking coal - "the tightest commodity on the planet" according to Charlie Aitken from Southern Cross Equity.

In the ground valuations will be speculative to say the least, especially given the distance to infrastructure.

On top of that there is also massive blue-sky upside due to the massive tenement holdings that HUN have. The true value is often found by reading between the lines, not the already reported JORC resources ;)

A few points:

(1) Multiple coking coal tenements and maiden resource should be known on Monday.
(2) Already solid thermal coal resource and possible 3-5 fold increase
(3) Cashed up with $32m in the bank
(4) Very aggressive drilling campaigns ($9m spent last quarter)
(5) Significant shareholder notices building stakes
(6) Very thick shallow seams (to-date) should make for low cost mining

HUN is on a mission

I have attached below the article relating to Noble/ XAM released today as it is relevant to HUN in terms of showing how this region is developing into a major coking/ thermal coal region (landlocked or not).

Credit to Seamfiend for pointing HUN out to me :)

Cheers
John

Noble Group to take Xanadu stake under JV
Published 2:05 PM, 3 Feb 2011
QUICK SUMMARY | FULL STORY

AAP

Shares in Xanadu Mines Ltd rose after it said Hong Kong-based commodities trading house Noble Group Ltd would take a stake in the junior explorer under a strategic alliance in Mongolia.

Xanadu shares were up seven cents, or 11.29 per cent, at 69 cents at 1327 AEDT.

The alliance will involve the companies focusing on coking coal, iron ore and ferro alloys opportunities in Mongolia.

It will also involve a placement on March 23 of up to 10.42 million Xanadu shares, at 70 cents each, to take Noble's interest in the explorer to 9.9 per cent.

Funds from the placement would be used exclusively for exploration and development activities in Mongolia, Xanadu said in a statement on Thursday.

"The alliance, while focusing on coking coal, iron ore and ferro alloys, will also allow Xanadu to continue to advance an existing Galshar and Khar Tarvanga thermal coal projects and its copper gold assets in the south east Gobi," Xanadu chairman Brian Thornton said.

However, any existing assets held by Xanadu do not form part of the strategic alliance, the Sydney-based company says.

Subject to the execution of formal agreements, the companies will take part in the strategic alliance through joint venture companies, with each party holding 50 per cent in the joint ventures, Xanadu said.

"The initial focus of the joint ventures will be the pursuit of a number of identified opportunities," Xanadu said.

Mr Thornton said the alliance was an endorsement of the untapped potential that existed for energy and minerals in markets neighbouring Mongolia, particularly China.