cheowa - glencore, page-4

Hi Hopper,

To be honest, very little on the ground in terms of building a production facility or even digging up some dirt.

ZRL cannot self finance a production facility in Zambia at the moment (like many smallcap miners, even midcap often enough). They will concentrate on getting further assay results and building up their resource base for now at Kangaluwi. The mining licence allows them now to go out and search for cash (with confidence) to get the show on the road effectively (i.e find investors). This is not a cheap endeavor to get off the ground and ZRL will need cash, and lots of it. Don't worry though, this is normal... The better JORC resources they have though, the easier it will be to raise the capital required and to be honest, they couldn't have hoped for this to happen at a better time with the copper shortage at the moment and rocketing price.

As cash from the dumps and Cheowa is not going to be forthcoming in the short term, they will still likely need to do a cap raising at some stage, but i expect the money for the mine and production facility (i am not sure what already exists within a suitable distance) to come from an outside investor, say Chinese at a guess, but i would prefer someone like Glencor to take a stake in the project.