ann re olympic dam project, page-16

The company hasn't got into bed with anyone yet. Why would they?

there's a few issues to work out besides the mini-frac. Firstly, what sort of carbon trading or premium for green electricity can they wrangle? What government subsidy can they get? A REDI grant, dollar for dollar for the pilot plant?

will they even need to "finance" the thing? If they raise $5M via a SPP or placement, they can get a dollar-for-dollar input from the government. $10M to drill two exploratory wells for a full-scale frac test, then with that data they can go shopping for partners - B&B power, GDY, BHP, S.A. government, ethical investment funds, whatever. they wouldn't need to finance anything depending if they go for equity dilution or JV dilution of interest in the project. If they flog 50% of the project under terms that the farm-in partner has to take it to 40MW completion at the buyer's cost, that makes it very neutral on GRK holders.

All options are on the table, basically.

As for your pessimism over the fraccing and reservoir quality issues (eg; wicking away water), I think that ashwil's points have not been turned around by your curmudgeonly gristle-chewing. Sure, its a risk, but from my knowledge of stress-strain dynamics there is no better conditions than horizontal jointing or fracturing for geothermal. Your point is valid; we don';t know the footprint of the stimulated fracture system and hence the area or volume of the system and heat capacity. Ergo, we don't know the power output per well. But the company's presentations have not stated "we will get 7.6MWe from each well" they have said "could be". That's what we all know, I would hope. Could is not the same as "will be".

Lets put it this way; if they said "well, worst case scenario is 1MWe per well if the mini-frac stuffs up" would anyone even bother, including the directors? Its a glass half full attitude which you need to have in order to do any kind of exploration. You seem to have a glass half empty kind of attitude toward this, and seem healthily skeptical, but my personal view is that you are overstating the risks without appraising the potentialities correctly. The risks are high, but I think that the company has addressed the wicking away of water (ie; using the OD waste water), and has the best possible potentialities in terms of temperature and in-situ stress. Basically, if you see all these positives as being not enough, its probably better to buy into hot rock stocks after they've got into production and not before.