im back from the hc slammer

Did hard time and its it was difficult being locked out during such an interesting week for RCH. This week coming should be a blinder as the imminent announecent regarding funding should be made.

Noise going around is it is some sort of JV and of course thats exactly what we want.

The last announcement giving us a satellite image of where the past drilling took place gives a good overview. What I gleaned from this is the following.

1. The drilling which indicated a resource of is 100Mt is over a limited area and much of the ground is still untouch as is indicated by about 9 holes in the SW corner and NW area which had good high grade hits but aren't in the resource zone calculation. This is already a big resource but has the potential of being very big. The grade is freakish. Other Moly companies in Canada and the US go ga gas over 0.1% Mo (very high grade). That is still a whopping 0.02% under RCH average grade and a light year under the RH high grade core which is an astounding 55Mt @ o.19%Mo.

2. The 500M high ridge where many of the drilling was concentrated, have not to date tested the theory that the hill is not a series of upward faults but may in fact be a continous zone of mineralization. They will need to drill a big 1000 metre diamond hole from top of the ridge to 500 metres below the vallet floor to test the theory. If its continous, then you have the makings of something very very big.

3. As I mentioned above, the drilling was mostly up the hill with only a 4 holes penetrating the valley floor level. The holes that penetrated got big interceptions at good grade. It is quite likely that future deeper drilling will expand the below valley floor resource.

Just on another aspect, the deep 70% dipping orebody and which the top runs parrallel and close to the surface of the side of the hill, makes this a fairly easy to mine, mostly open cut affair. Gravity can be put to great use when mining this orebody when it goes from open cut to below underground.

Wonderful project overall. Will be good to see a great deal more drilling in the near future.

What one needs to focus on is not so much size, which it already has plenty of, but the grade. Many explorers often boast of big resources with attention being given to grade and thus the margin available for profit.

Toli Toli (name of this project) has big fat margins due to its fantastic high grades. Its also located close to its main end market (Japan and Korea) and will be within spiiting distance to a new roaster being built in South Korea.

Power costs usual take up 1/3 of operating costs, so they are very significant. Diesel generation is hugely expensive however Toli Toli is within proximity of a fast flowing river which can be used for a small hydro generation plant. The project is also only about 8km from the a deep water bay which the barging of the MoS2 concentrate can be shipped or a small wharf built to accommade a ship.

Lots of upside here, lots

zzzzz1