major chinese steel group invests in imx, page-51

Vayama

I agree there has been many delays and the timelines keep changing, although that is only too common given the nature of the project and today's environment. The project does present some mysteries, is this lack of good management and communication?

Grade and content - refer to AMEC investing in stocks presentation pg 17 Metallurgy 51.46% Head grade v's Mag Separation 71% (Note: Magnetite is removed by magnetic separation, the copper would be removed by asecond process - flotation). From previous reports: "GDM is currently evaluating on site dry magnetic separation to increase the shipping grade of the ore. Testwork shows that is possible to increase the grade of the Fe by up to 8% "

The Feasability study is also referred to in the same presentation: -

"Feasibility study evaluated 2 options:
• On-site production of magnetite & copper-gold concentrates
• Dig & ship with processing in China (base case)

- Mineral Claims pegged & MLA lodged 12 February 2007
Indicated JORC resource released

- Detailed mine planning complete – will optimise for customer

- Optimising feasibility study with Chinese equipment Mining Lease offer mid Q4 2007

- Trial mining Q1 2008 (draft MARP completed for Trial Mining)

- MARP (for main operation) approval anticipated in Q1 2008
Mining deposit Q2/3 2008

- Chinese institutes have confirmed testwork & ease of processing

- Modest capital costs for initial start up operation"

Perhaps the final outcome of the BFS is subject to the outcome of the 2 options ie the announcement today? I understand from reading over several forums that it was initally anticipated in May/June but no announcement has been made.

Re: operating costs from Stockresource:
"At current spot pricing levels Cairn Hill could be expected to generate surplus cash flow in the order of $25m to $30m per annum. However, it will not be a low cost producer and margins will diminish at lower commodity price levels.
A number of longer term opportunities exist to reduce the operating cost structure; particularly through economies of scale associated with higher production rates (the aim is to double production) and reduced port/transport costs.
Cairn Hill Drilling."

Cairn Hill is located north-west of Oxiana(prominent hill) and BHP (olympic dam).

My question to long-time holders is regarding transportation logistics, which could e a major issue. Has this been sorted?

I also understand that the Pattersons valuation of $1.08 does not take into account Cairn Hill. Am I correct?

http://www.goldstreammining.com.au/_content/documents/677.pdf