Hold your nerve.., page-2

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You know there is this saying.....when all is said and done .....unfortunately far more is said than done. The ASX delay in relisting VRX although inconvenient for most could hardly come as a surprise for even the punters on HC still wearing short pants .....especially on the Western frontier which still boasts a healthy posse of corporate gun slingers roaming the open plains of the resource continent.

I have endeavoured to try and identify the facts around the companies involved in this 'agreement' and the proposed project and quite frankly this has not been easy. Perhaps things are done a bit differently over there and the critical factual details required to transform this fairytale into a commercial enterprise and provide comfort to any prospective investor that maybe like minded in principal appear to be either yet to be addressed or are so secret they remain obscure to just about everyone. Cant really make a sensible case for the later strategy given the conceptual grounds for listing an exploration/mining company is underpinned by sourcing funds from potential investors to facilitate this process. Call me old fashioned but one would assume the more positive detail that potential investors were provided the greater level of comfort they would have with the process and the more likely they would be to provide financial support to the idea.

Fundamentally sand operations are a logistical exercise to an extensive and varied market directly dependent on and governed by sand purity and levels of associated unwanted contaminants. I suppose there may be some concessions granted to VRX in the details of their strategy in addressing the fundamentals of a sand operation (given their change in direction), however AS website reads like a novel from the fiction section of the local library. Apparently the sand they "are confident exists" within their lease may supply many markets and they are talking to everyone of those markets , by crikey I can assure you just one market (if your lucky enough) is enough to keep a team of experienced directors chained to the grindstone, as every individual market will obviously contain its own challenges and market forces along with the obvious transport and commercial viability limitations.

In my humble opinion AS has just really got paid for delegating the work that should have been done on this project to VRX and simply crossed its fingers. I hope VRX are up to the challenge and shareholders understand there is a fair climb ahead for the company.

With this in mind, if I were considering supporting this idea by way or providing investment capital to this company, the initial questions I would like some detail around would be:

1. thanks for the overview of the silica sand market, however which market are you intending to enter?
2. logistically how do you intend to supply this market, and at what annual capacity and what are the costs associated in doing so?
3. what competitive forces exist within this market and who are the major players within this space.
4. has the company identified the major barriers to entry in this market and how does it intend to address these barriers?

and that would just be the start of a very long conversation.

A comparison perhaps may be made with DRX which appears to be moving forward with their project at a reasonable rate.

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