A belated response but this is what I understand:-
As I and many others have said, this is way undervalued.
See my previous posts about the SRK Report in Oct/Nov 05 and it talks about the pipes and possible pipes.
There is so much the market is missing on this it is not funny.
To answer your question, we know they have 4 breccia pipes that they have confirmed, Sandy Flat, Bluff, Punchbowl and Redbank.
But what has not been reported that I picked up from the SRK report is that as of late 05 San Manuel, Quartzite and Roman Nose are all considered to be breccia pipes.
It is just that RBM have not drilled there yet, but you can bet they will at some stage.
So there are 7 pipes at the moment and I have no doubt there are more to come.
As far as the tonnage in each pipe, well this will obviously vary to some degree from pipe to pipe but lets say that each pipe has 1,500,000 tonnes of ore @ 1.5%Cu then this is 22,500 tonnes or 49,500,000 pounds of Cu. At current prices of US$3.40 a pound this is US$168 million per pipe or about A$205 million.
Over the 7 pipes they then have over 150,000 tonnes of relatively high grade Cu. Not bad for a $20 mill market cap company.
The important thing here is that because the average grade is relatively high then the mining costs should not be that high. So even if the Cu price goes down to US$2.50 they should still make a good profit.
Also, they either know or have a fair idea of where the pipes are so their discovery cost should be very low.
My estimates are very conservative as each of the 4 pipes already confirmed by RBM is likely to have over 2 mill tonnes each and not 1.5.
I would hope that by this time next year they should have a breccia pipe only resource of about 15 mill tonnes @ 1.5%Cu.
Hope this helps.
Flipper
RBM Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
