3b target 16 holes drilled so far, page-12

just so you all know why i was interested in MXR, when i saw the annoucement of the ferrovanadium size i was interested because i have a holding in AXO.

AXO has a large and high grade ferrovanadium project around 100kms south of Port Headland with (45% ave Fe) V2O5 (0.50% ave) and some titanium. so i though i would have a look at the results seeing how it was close to WVL and compare it to AXO.

i was suspicious when i first saw "concept" of 1.7b-3bt and grading of 20%-30%. i have been following AXO for over 2 yrs and i know how they have drilled out their ground and what it involves from going from a target to a JORC resource.

so when i see a pump up announcement that was released last friday and its reaction in the market i get irritated that so many people get sucked in by big numbers that are either 2x-3x the size of Balla Balla based on 16 drill holes.

AXO are spending something like $10m to get the resouce up to a resource of 1.3bt and 650mt JORC, they have a market cap of around $160m, have $70m in cash and have off take agreements for 10mtpa of concentrate (6mtpa from 2010). so when you compare a real project to something like MXR you start looking for all the things that AXO have done and are doing compared to MXR and the differences become so obvious.

Celica then says CFE is getting $400m for their 1.3bt of magnetite and says well therefore MXR should get that aleast. i then point out that CFE is on the coast not a few 100kms inland next to Mt Magnet and i get told its ok they will use WVL's infra. i mean, no one is going to pay anything for uneconomic ore hundreds of km inland, let alone an estimate that could be 1.7bt-3bt in size at between 20%-30%. the more of these numebrs i see the more i am amazed that the management of company can get away with these things.

even if WVL wants the ore i doubt they will have the need for any more raw ore for yrs and yrs to come but it doesnt stop people suggesting that it could be WVL buying on market.

i couldnt care how long Celica has been posting on here for, the point is that i asked some simple questions on friday and over the weekend and i was basically told i was jealous because the price increased so much, when i pointed out that it could be a pump and dump it was then accused of being a "down ramper".

not true, for all i care it could go to $10.

the point is i then asked about infra, production etc and i then get told it might be WVL buying on market because the volume is so high or even better still its serious investors. get real!!

no stone unturned hey?

if you want to see what is involved with a real ferrovanadium project go and have a read of the quarterly for AXO, then after reading that and you still think MXR has the goods good luck to you all.