Buns, I have been thinking about your comments further. Over the...

Buns, I have been thinking about your comments further. Over the last few days the company directors have been going through some brokers, funds and analysts in Melbourne and going througha few more in Sydney tomorrow. It as awareness campaign. The company is pretty much unknown - it is a small company in a sector which can only boast a sector market cap of about $600M, half of which is taken up by geodynamics. The story is just starting to get across to te market and it is taking time - certainly more time than I would like but hey we can only do our best. I got the company to see my broker at Goldmans and i understand they saw a bunch of others as well. yes there is the sky business show tomorrow night and there may be some press next weekk anyway becuase of the Hot Rocks conference. I work in the mining game and have a lot of shares which i paid 4,8,10 20 and 15 cents for (in that order). I am not selling because I have convinced myself that the value will be realised. Agree being frustrated about the sp and feeling a bit peed off at the drop but for me the fundamentals haven't changed. The real fundamental is that the company has a very large homogenous body of hot granite very close to a market. It is not a stranded resource. It is not 500 kms from the market like gdys or 350kms like paralana. I was speaking to some SA governemtn types and they recounted the story of how they looked at wind power in SA and lots of people chased the highest wind flows as a place to site the turbines. In the end the successful operators were the ones not with the best wind but those closest to the market. being close to the market really matters. It makes an enormous difference to capital. Really huge - make or break .

On another point, for years the sector has had the hot rocks are good and the hotter is better argument rammed down our throats. It started with bertus DeGraff at GDY. Scientifically it is correct, the more heat the water has will transfer heat more efficiently in the binary plants upstairs. My understanding with the hot dry rocks plans are that water gets pumped down the injection hole and gets pumped up again at the recovery hole.
This is different to Hot wet rocks like gdys habanero because they are drilling in petroleum systems which are overpressured anyway - ie the water wants to cum up by itself. Either way can be used to transfer heat to vaporise the medium in the binary plant. One of the misnomers that has been running around for hot dry rocks is that hotter is better. A little bit true, but the current downhole pumps can only tolerate about 190 celcius, any more than that and they don't work. It is too hot. So GRK isn't looking for vastly hot rocks , it is looking for rocks hot enough but not too hot.

I have heard p[eople looking for 250 C rocks in a dry environment. It is a watse of time. You can't make any money out of them because the downhole pumps don't work at that temperature. This has nothing to do with habanero because the opposite is true. The water is damn hot and under pressure. Their engineering problems are a different kettle of fish completely.

On the SA desalination. The concept is to use geothermal energy to boil seawater and distill fresh water from that. BHP is also looking at a desal plant in SA for OD -Currently Bore field 1 and Borefield 2 are near the extremes of production and Borefield 3 is too far away. Desal an pumping the water from the gulf to OD is part of the feasibility studies for OD expansion.

Energy in SA

Currently BHP gets the energy for OD via a coal powered station at Port Augusta which sources coal from leigh Creek. They use 130MW now and if OD expansion goes ahead they will need 500MW. South A is an energy importer. The coal supply runs out in 2017, though i understand that Browns (owners) are drilling like crazy to increase the resource. Prominent Hill will need 30MW. The point is that the state doesn't have enough energy anyway. Geothermal will play a part of this supply in the future. GRK is in the right place at the right time with the right assets. The guys running it are experienced professionals out of WMC who know OD backwards. They are focussed on making money. They will get there.

I have also been feeling the sp go down. What i don't like buns is for you to have a cheap shot at me or anyone else and slag off and call me a ramper. I have done my homework and put my time and money in this thing. I stand by my judgement and I am not scared. DYOR cheers omg