show me the money!!, page-55

I would just like to suggest that people go back to the announcement released some months ago whereby a valuation was done for LCY and specifically Mt Bevan.

The valuation was based on iron ore prices for differing grades in the WA area. It valued the 60% (LCY Component)Mt Bevan resouce at $104mil. This did include the resource target but only at 40% as they assumed that there was little likely hood of the target being met in terms of size and quality. (this is the 1.5-2Mt). It is also worth noting that the valuation was based on recent commodity prices and as such considers the economic climate.

As we have seen from the recent developments the grade is much better than expected and the size is on target.

Specifically in the valuation they list other mines and the price they make per t/fe. This value differs dramatically ($0.26/t - $1.15/t) for different mines and the metalurgical qualities seems to weigh highly on this price figure. The valuation adopted a conservative figure, by memory $0.38 or similar. (For the record the $1.15 per t/fe was at at grade of 34% fe and the highest used in the comparison. The lowest grade was about 26% i think. So far mt bevan looks to be at about 34% also. It did not show silica components etc but we know our resource is hard to beat in this respect)

I think this has everything to do with the renegotiation. I believe the metalurgical results may be a much bigger deal than many of us realise. Good news for HAW and LCY. Lets hope.

all IMO