ext v bmn, page-11

Emerald,

I would add something which I hope you are aware of.

Be careful about what constitutes an economic resource and a sub-economic resource. Pounds in the ground mean nothing if it costs more to extract them than you will get back on-market.

Therefore there has to be a cut-off point for economical concentrations of resource. The further above that cut-off point you are the less inherent risk in your project. The closer you are to that cut-off point the more exposed your project is to the vagaries of commodity fluctuations.

This can get complex and there is a wonderful book by Victor Rudenno called "The Mining Evaluation Handbook" which can assist in understanding such valuations.

Unfortunately there are many factors to consider, it will never be simple.

Another thing to consider is what is your time scale?

If you are in for a short term in/out then nothing matters other than the chart. If you are looking for what will outperform over the next 12 months then I think you need to factor in many variables.

Yet another indicator is where is the institutional money going? Where are the big boys putting their money. Sure you can take heed of Joe Bloggs and where he is putting his $10,000 but where are the internationals putting their tens and hundreds of millions?