re: revised maths SCD, "AND what is wrong with 1m tonnes of...

re: revised maths SCD,

"AND what is wrong with 1m tonnes of copper and 1m oz of gold??? How can that amount of resource not be economic given the geology".

a ha! here we are - the quintessential issue we have been bouncing around and the larget issue with resource stocks .......how can that amount of reource not be economic???

SCD there are literally thousands of mineral deposits around the world sitting in the ground undeveloped. They represent many millions of tonnes of copper and many millions of ounces of gold. so why are they there?

because they are poor quality assets. in what way? in many many ways. mining has so many risk factors it is ridiculous.

grade, metallugy, power costs, water, geotechnical, weather, the list goes on and on.

geology? it is only one of the issues. important yes, but jeepers there are a lot of other issues that will kill a project.

grade, grade, grade. grade is king. and that is the difference between OXR and PNA. Until you get over that hump we will bounce heads for ever. OXR has a world class asset. why is it world class. it is high grade and cheap to mine and there is lots of it. gold and copper.

the relevant question is what component of the copper and gold is economic. how much carrys economic grade. and is there enough to justify the development risk.

the numbers you quote are contained metal. they give no indication whatsoever of the economics of the resource. the resource is the tonnes and the grade, which is a very different thing.

the trouble is with mining companies they dont tell you a project is marginal until the end. why? because they have to keep raising money from investors like you thats why.

so you have to develop you own view if a project will be marginal. this may not mean it will not go ahead, it may just mean that it will not make a lot of money and as a result will be more subject to variation in metal prices and the many other risks of mining.

what is the best way of knowing if a project is marginal? Look at the grade of the deposit first, then consider the rest the issues.

PNA have a low grade deposit. and its spread thru three deposits 40km apart.

Not the best scenario in my books.

Its a question of choice. There are many other resource stocks out there why go for one with marginal deposits.

I have said enough. each to their own. you are making money, so good for you. I mean it.

acturtle