a bar too high, page-7

Hi WW2zombie

No it not down ramping, it just suggesting that you should open your eyes and look beyond ARH and it's magnetite resources.

Have you ever been to Conakry the capital of Guinea in West Africa, do you know any one high up in BHP Iron ore, have you thought about Chinese owning 15% of Rio and the long term implications for iron ore mines?

Well I can say yes to all of these.

Have you ever been to see the Citic project, have you read the reports of there USD 1.0 billion lost of foreign exchange dealing or the additional USD 800 million plus payable to MCC?

I have.

Why did Clive failed in Hong Kong, other than proposed share price and the money flow to Mineralogy the main reason was that Resourcehouse only had the right to mine a certain amount of coal or iron ore, there is no upside for finding any addition resource as all the additional resources belong to Mineralogy. Hence ResourceHouse would be just a production company not in the conventional terms an exploration company.

So look at ARH, basically you have the same model as Resourcehouse, just a middle man mining the ore and hoping to make a profit between exaction cost, royalty payable and price paid for the end product.

So until the world sees Citic making money, operating there mine I can not see any large scale funding coming ARH way.

As an aside I have no idea what Citic was thinking when it exercised the second option to mine not just 1 billion tonnes but 2 billion tonnes, why pay out an additional USD 200 million for an additional billion tonnes of ore when you haven't even started mining the first billion tonnes. FYI I believe that Citic have another four options to mine an additional four billion tonnes as and when needed.