mf and the mines and money conf

Hi All,

Was doing a bit of trawling and stumbled over this little snippet which outlined MF comments at the Mines and Money conference.

Africa-focused AIM Resources Ltd was represented at the conference by managing director Mark Flory, who used his time at the podium to discuss its 100%-owned Perkoa project in Burkina Faso - which he described as "one of the richest zinc deposits on the planet."

"It`s a classic volcanic massive sulphide deposit. We`ll be lifting ore from as early as September 2007...the payback period is 15-16 months," he added.

Project funding for Perkoa is slated to cost US$145 million and will be made up of a project loan, a convertible loan issue and a share issue. Off-take partners for the metal are expected to be Louis Dreyfus Commodities, Votarantim Metals and Xstrata Zinc, all of whom have signed letters of intent.

Boosted by the recent strong price of zinc, Mr Flory told the conference that AIM had decided to amend their original production plan and utilise decline mining to help them "get to higher grade deposits quicker."

In addition, Mr Flory said AIM would target 31 anomalies within the Perkoa area for further exploration next year.

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The last paragraph was the interesting bit. If they were to continue exploration next year in Perkoa to target further deposits of zinc, one would assume that potential strike zones at Perkoa to be extended (?) and potentially this could enhance the NPV of Perkoa further. A number of companies have followed this process recently and their share prices have reacted accordingly. I noted in the breakdown of the finance package there was a component set aside for further exploration which seems to imply that further drilling is likely during 2007. Also found the comments that Sept 2007 ore lifting interesting.

All in all the decine in the share price last week is just a brief profit taking episode leading up the the end of the quarter. Light volumes seem to provide and indication that there's not a lot to be concerned about.

Merry Christmas all ... hope to see something on the news front in the very near future (especially if Sinbin's info on the placement being closed off next week proves correct)

One dumb question for Domum. I haven't got my head around the impact of cancelled warrants on the actual reserves of zinc available. What does a warrant entail (ie: does a warrant imply that a delivery of zinc is intended to be made and thus a cancelled warrant is the cancellation of this planned delivery of zinc?). Have noticed your focus on warrant cancellation Domum and am keen to understand how this works.

Cheers ... DK