jojosydney,Not all that well informed, thought FMR were selling...

jojosydney,

Not all that well informed, thought FMR were selling Eloise, very poor disclosure from BRW management as for re-opening to to occur the work contracts would have needed to be in place from probably August or before.

Regarding value, the current resources are 3.5Mt @ 3.1% Cu, so BRW have about ~30kt of copper in total from what was identified. The previous mining plan was looking at 16-20ktpa of copper which would give them 4.8ktpa to 6ktpa.

BRW previously estimated the Eloise was worth $20M plus another $20M for their exploration leases. The undiscounted net cash before tax would be alot higher than this. Also old mines with short life spans have a habbit of finding more ore, the upside for BRW is if FMR could continue to expand the mine life and reduce costs.

Not sure what the overall plan here is, it makes no sense to have all the ground around an operating mine and not spending a cent on exploration which is what BRW are currently doing. Any copper/gold discovery on BRW's leases around Eloise has the potential to be trucked to the plant for processing unlike other juniors that would need to stump up $50M to $200M or more.

FMR still have a lot to do, its an old deep mine so market may wait to see that everything ramps up on time but you can see from potential production and any update on exploration leases there is good value in BRW under 10c with moderate to high copper prices.

Lots of potential but needs more direction, BHP-jv is keeping me interested.