This came in over the weekend from a Perth Broker regarding...

This came in over the weekend from a Perth Broker regarding Energio...
"Energio is looking to establish a JORC resource of 400m tonnes of 45% Fe by end Q2, over 10% of asset. Take the $4/t, halve it for magnetite, halve it for impurities, halve it for Nigeria and apply 50c/T on this style of valuation and you come up with a $200m in ground potential (over 10% of the asset!) Keep in mind we are talking over 10% of asset and 1 lease out of 20 leases and grades to date have been 45-50%. Energio will overtake many of its peers through the year."

Interesting snippets which are basically a worst case scenario for the valuation of $200m which incidentally is equal to 83.33 cents a share!

So the upside is..

*grades are higher than first anticipated.
*the ore body is thicker than first anticipated.
*Burston and co. are confident most impurities will fall out in first crushing.
*Step out holes are also being drilled in current program.

Plus sovereign risk in Nigeria is grossly overstated as they are a stable government hungry for foreign investment. (Shell is about to pour another $4 billion in to the petroleum industry).
Im sticking with my $2 price target by end of September this year.