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Justinmetals

Thanks for your posts but disagree with this part..."latest announcement pointed to a much lower capex and opex so this would suggest an anglo jv" ...my reason is because if we do a jv with Anglo you can cancel the spiral decline as this would be a straight decline developed on the ore body utilizing a conveyor rather than truck and shaft haulage. Much lower capex because they have reduced the depth of the haulage shaft by at least 300 meters and no need for refrigeration, two big ticket items.

Cant see sovereign risk being an issue for a prospective joint venture partner because if they are interested in platinum they must already operate within the South African mining sector and are well aware of them. Not like the Big 4 platinum producers have curtailed spending because of sovereign risk, look at Lonmin, set to spend $450 million on capex this year alone and wish to spend $2 billion over the next four years to increase production by 200 000 ounces of platinum.

Still think all a Joint venture partner has to do for us is to arrange finance on our behalf for part of the capex. This project at the moment indicates close to a 40% IRR, if a JV partner was to supply all the capex this will be 20% IRR for themselves which wouldn't fit their requirements. I expect a sliding scale of capex spent by jv partner to match their expected returns and the remainder of the tab picked up by Nkwe....80/20 split of the capex for 50/50 joint venture? Garatau has had roughly $26 million spent on drilling alone (figures obtained from Bauba platinum's projected drilling costs) without including all the feasibility costs. Joint Venture partner gets a share of a 23.3 million ounce resource, 14.2 million ounces in the measured category (Garatow only) with more resource yet to be defined on De Kom which has only have one drill hole and a 300 000 ounces PGM operation for anywhere between $325 to $650 million? Looks attractive when looking at Lonmin's expected expenditure

On another topic, doing a little research on the Bengwenyama land claim on Eerste Geluk, appears they have two other claims in, one on Winterveld 293KT and another on Doornbosch 294KT. The original awarding of a prospecting right to Genorah took place before a land claim was lodged on Eerste Geluk but now the land claim is the principal defence of the Bengwenyama in the appeals process, so if they win does that mean Anglo lose Winterveld which is part of the Modikwa operation? Does a mining right trump a prospecting right or something, haven't seen that written in any South African laws. Their isn't any mining infrastructure on Winterveld yet either. There is also a claim on Nooitverwacht by a third party, the farm the Bengwenyama say they were never disposed of, so how is it that the apartheid laws discriminated against one black person and not another? Dont think every thing is cosher with these claims.