Excellent announcement by GUN and a bit unexpected for me....

Excellent announcement by GUN and a bit unexpected for me. Highlights:

HIGHLIGHTS
• JORC compliant ore reserves at Coburn have been increased by 247%,
from 124 million tonnes (Mt) averaging 1.3% heavy minerals to 306 Mt
averaging 1.2% heavy minerals.
• At the proposed mining rate of 17.5 Mt of ore per annum, the mine life at
Coburn has increased by over 10 years, from 7 to 17.5 years.
• All of the ore reserves above lie within the portion of the Project area that
has government environmental approvals for mining.
• Lower strip ratios in the northernmost pit improve the Project economics by
reducing overburden removal costs
• Further metallurgical test work has improved the zircon product quality to
the target level set by a major potential customer in March, 2008.

Whilst there has always been talk of up to 20 yr mine life this now puts a firm line under it which is all very encouraging to my mind. Presuming the deal is sealed soon with CTIEC my thought is that this increase should have an impact on the PE that GUN eventually gets from the market when in production.

Now hopefully some good news from Mt Gunson in the next week or so.