Ann: MRG HMS - Significant Second Aircore Assay Results, page-46

Yesterday I posted a link to the type of mineral sands deposits been mined. 5%THM is one. In terms of the market response, as I posted in ADN about a week ago, the same goes here been:
1. Market already knows the resource here is good and comparable to other mineral sands deposits ultimately mined (refer my post of yesterday). Market factoring in here already of about 5% THM, so resource wise what may give SP a kick is if grades surprise on the upside. Obviously if future assays show below 5% THM, then a negative happens.
2. So market IMO starting to ask questions what is MRQ going to do with this, so too me the drivers of FA and long term trend in SP relate to I.) THM market conditions and whether MRQ can enter the market in the next two to three years, ii.) funding, and iii.)Offtakes. A timely SS and DFS a key to showing deposit is economically mineable, and obviously that means Offtakes etc
3. The first key to anything is getting a JORC 2012 out that has a measured and indicated resource, because bankable studies are not based on an ‘inferred’ resource. That JORC will gauge the size of potential operations etc.

As I indicated yesterday this is now a long term play and TA and FA will mismatch over periods of time, but if the ducks line up the SP trend is upwards. As on iPad can’t link that post from ADN I did last week, because the same applies here IMO.

Until further Anns come out I don’t intend commenting on day to day SP movements, but free carry strategies are a must this side of the market IMO, because SP movements can be very extreme at times. Also, with each Ann SHs need to evaluate whether FA analysis still holds, and the key one is can MRQ enter the market in the next two to three years, and obviously that does mean having a good resource and Offtakes and funding. But these take time, so the next 12 months are going to get interesting here.

Time will tell.

All IMO