drill results & milestones, page-25

The value of the comparison is that you are going on a limited amount of knowns.

The knowns are MC, early resource estimate and share price. That's the reason why at this stage, besides quality of management, location etc their is not much to go on.

Therefore how do you value companies that haven't got a feasibility study completed?

You need a certain quantity of resource or nothing will happen.

Your Market Capitalisation compared to this resource cannot be too out of the world and must be in some type of relationship with those companies with the same degree of development. You obviously will not be getting the same MC per tonne for an explorer as for a producer. Once this is achieved it is just another box going towards production.

If Tasmania comes good there will be a resource upgrade which will effect the share price because it is a totally different area.

On all these counts RES looks very good especially at this amazingly low price.

The more you look into it the more you need good experienced management who have been there before.

It is as AussiePunter says. Once you have a large resource other things are much more important such as possible infrastructure, deals, feasibility study, government support etc.

Many of those will hopefully be happenening in the next 6-9 months.