Ann: Update on Mt Gordon Copper Payment, page-56

To expand my point above. Something that would be both inthe Chinese and MLX general shareholders interest is to increase the about of Sn resourceand reserves at Renison. I think we know we have around 20 yrs worth of Sn.Only a small amount say 4-5 years worth will be proven up to Reservestandard. A lot more (can't remember but you can check the last recent resource statement, in December?) say 12 years worth in resource.

It's relatively easy and cost effective to add value to the company by moving(mainly drilling [density] and proving) resource to reserve. This effect issupercharged when the Sn price is high because a much lower grade and thushigher volume can be classified as clearly economically mineable.
Ithink it's a power function, I.e. to power 2 with multiple-kriging for theresource/reserve estimation from distance from drill holeassay (it depends on the appropriate estimate method used).

One should note in the five year recovery plant for MLX even with the previousboard this increase of resources and reserves was a big part of the plan. Nowwe are gifted with the higher Sn prices. The SP has desponded somewhat butthere's plenty of room for optimising.

Whywould the Chinese be interested because they can easily quantify thegreater profit and support at higher price. In fact they can sell forwardthe Sn on futures to lock it in a mechanism made much less risky if you havemultiple sources of Sn production.


Sorry to prattle on so much but it's probably better than straight outarguing.