in situ valuation, page-11

In Situ value would only be worthwhile if we were looking a potential sale, and if so you're CAPEX costs are irrelevant.

The important factors to consider are depth, quality, size of deposit, location to transport/power, mining method used, economic recovery %, price of mineral sales.

With the exception of depth and transport/power no body really knows too much hence the huge discount to the potential value.

The most important thing is to find the mother load of high quality silver/lead. The most recent drill hole shows the potential however if the next drill hole works out as hoped this will take significant risk out of the equation and this will rocket. If they can then replicate this on numerous more holes, more risk will be taken out and the price should continue to increase.

Once they have a mineable resource, you can then consider in-situ valuations, however the most important thing will be the in evitable fund raising and subsequent PFS studies
and detailed suitability.

The fact is, if this proves to be a Tier 1 or 2 asset, we are talking an SP of many many times it's current value. A $1 Bil Resource is a 20 bagger and equates to an SP of $7.50.

$1B may seem high to some, however the company is hoping, obviously highly optimistically to have a Cannington size deposit. To put context on it, Cannington made c. $1B for BHP last year alone, has been in full production since 1999, could potentially have another 20years + left in it and is probably still worth in excess of $5B.

My guess would be, if they find some thick deposits (35m) with high grades of silver 400+g/tonne, I expect the SP to rise to well in excess of $2. Any thick grades in line with the previous hole we should still be looking at doubling or more.