Markco2, WVL are light years ahead of YRR and as you mentioned...

Markco2, WVL are light years ahead of YRR and as you mentioned they still have the potential to increase their resource greatly. Having a large backer such as Noble is a huge plus and gives the market a lot of confidence in the viabilty of the project.

YRR has today announced the completion of RC drilling at Gabinintha with results due in 6-8 weeks and a resource upgrade and scoping study about 4 weeks later. This will give a good indication as to the possibilty of its ability to be a stand-alone project or whether other options need to be looked at. I cant imagine YRR ever being in a financial position to get a large project off the ground without the assistance of a major player. An outright sale would probably be the best result before management give any more away to their mates.

YRR originally gave a breakdown of the required drill program for Gabinintha as 6800m of RC and 300m of Diamond core drilling which should take about 35 days. Then in the announcement on 28/2/08 they said drilling had started on 4800m of RC and 900m Diamond core. Now 13 days later they say the RC is completed yet there is only 57 holes with a total of 3754m.

Not sure why there is such a large discrepancy in the proposed and actual amounts drilled. They did similar with the last drill campaign when they were supposed to drill the full 12.2 km length of the project but only did 9.5km.

The previous drilling tripled the resorce size and hopefully we will get at least another 50% upgrade this time. Gabinintha contains around 750,000 tonnes of V2O5 (vanadium pentoxide), 9mt of TiO2 (titanium pentoxide) and 47mt of Fe203 at the moment.

The long term price of V2O5 is expected to be around US$4.50 per lb or US$10 per kg. Even at AUD$10 per kg the vanadium currently has an in-situ value of $7.5b with further results pending. The current resource is also based on a cut-off grade of .4% V2O5.

TiO2 is currently about $2200 per tonne. Gabinintha has 9mt of it. I don't know whether there will be a market for it or if it will be considered as just another impurity. The same with 47mt of Fe203. We need to wait and see what the outcome of the scoping study is to better gauge just what we have. That should be in about 10 weeks.

I do remember JG mentioning how the Gabinintha resource had a combined total of more than 60% contained product (51.2% fe, 9.81%Ti, .81%v) so that comment would indicate that he considered all to be of value. I will wait until it has been announced to the ASX before believing any statement from management.

Plenty to be positive about for the future from this point onwards, unfortunately that wont help the holders of GPN or YRR who bought in before the board started giving most of the companies assets away for unproven land. Just under 70% of GPN and YRR has been issued to the inter-related groups and soon 62% of AGU will be in their grasp as well. A big tick of disapproval from a much more discerning market. These deals have drawn a lot of negative attention and rightly so.