anyone still in

I'm, not looking to daytrade this stock, but what are the potentials of VML in the next few years?!? Should be good.

Vital Metals (VML)
Aegis has been commissioned by Vital Metals to be included in the May 2007
Junior Resources Review and has received a fee for its inclusion.
Company Overview
VML is progressing along the path to become a major world producer of tungsten from its Watershed
scheelite deposit in North QLD. The size of the global resource is 21.8Mt at 0.26% WO3. Drilling will
extend the size of the deposit, along strike and at depth. High-grade intervals over 1% WO3 have
been encountered. Ore sorting will significantly lift the average grade of ore milled. VML also owns
100% of the Alexander tungsten project and is earning 70% of the Mt Mulgine tungsten prospect.
Strategy
The company intends to become a tungsten producer by late 2009 via its flagship Watershed
scheelite (tungsten) deposit.
Aegis Comments
Outlook: VML is a one commodity play, but one that has very strong fundamentals. The main use of
tungsten (W) is for hardening steel to make cutting, drilling and grinding tools. Global demand for W
is growing at 4%, but industrial growth in China has accelerated demand for W to 10% per annum.
Russia and America had significant strategic stockpiles of W, but these have largely been depleted.
The current trend shows a potential shortfall of 8,000t by 2010. Production is expected in 2008/2009.
Risk: There are a number of milestones that must be achieved prior to first production. These events
include an EIS, a bankable feasibility study and marketing agreements. The demand for tungsten is
firm and the price is holding above US$175/MTU for WO3 in a wolframite concentrate at a minimum
grade of 65%. Despite China’s dominance of the tungsten market, fundamentals are good, with little
likelihood of a collapse in price like in 2002 when massive destocking in Europe sent the price down
50%.
Share Price Catalyst: A feasibility study is due for completion in 3Q07. Details of agreements with
international buyers would be well received by investors. Two 50t bulk samples to be taken in 3Q07
will provide additional metallurgical data. There is still potential for a big increase in the size of the
resource through infill drilling between the west and east zones and to the north and south-west of
the deposit. Hole MWD145 encountered multiple mineralised horizons and extended the resource
50m to the west.