axo also looking to produce ferrovanadium

i suggest that you all have a close look at AXO (Balla Balla) before you all start getting to excited about this stock.

http://www.aurox.com.au/balla-balla-introduction/

here is why.

AXO is currently drilling and expect to have a resource of 1.3bt. current reserves are around 185mt JORC and by the end of August the 1.3bt resource is expected to be around 650mt JORC. 45% fe 0.6% V2O5.

AXO has 2 off take agreements with Chinese ferrovanadium producers for 10mtpa from 2015 (6mt from 2010). AXO should have its contract for port facilities sorted in the next few weeks and will build a slurry pipe to Port Headland to get the concenrate loaded on the ship.

AXO currently has a market cap of around $180m full diluted and has around $70m in cash. They will need around $850m in capital costs to get into production. so the market is valuing the project at around $110m and they are very very advanced.

MXR havent drilled the thing out yet, have no off take agreements, have no port access, no other infrastructure, and will need at least $800m-$1b in capital costs to build a concenrate plant etc.

based on this i dont see the price running up until it sorts out all of the issues associated with infrastructure and capital costs.

but i guess i expect this pump up from the guys behind FDL. before you get to excited by the 1.7bt resource estimate i suggest you all have a very close look at what AXO has gone through because the same thing will happen with MXR but it will take even longer because they are probably 18 months behind AXO.

the next thing to expect will be a capital raising for further drilling.

oh and by the way, dont expect any insto support on this because they are ages off doing anything remotely like getting the ore out of the ground but i would expect that you will see the FDL brokers Bell's sucking in more client money for this stock.

talk about rampers and insider trading, the ASX and ASIC should really do something about this.