ann: copper exploration update, page-14

In my SLR post of 18 April, I estimated the amount of contained copper in the first drill hole area was around 67kT, with 10 times that in the larger drilling area. It turns out that my estimate was about around 2 and a half times that announced today.

However, I'm not too disappointed for the following reasons:

* The longer mineralisation lengths in the new Section BB gives me greater confidence in my estimate of 10 times the resource in the larger area;

* Even if this now only leads to around 250kT instead of my hoped-for 670kT, that is still a game-changer for the Murchison operation. It would allow for 20kT/year for >10 years. Given the expected low capital and operating costs involved in adding this copper to production, the margins should be well over 50%, leading to additional cash flow of over $60M/year at the current copper price. Used to offset cash costs for the Murchison operation, this could lead to cash cost reductions of well over the $300 referred to in the Proactive Investors article referred to by Sunburnt.

* And don't forget all the other similar targets in the area.

And for those who regard this as a pump and dump, I won't be selling any.