Conix, the announcement on the 07/08 stated that the measured...

Conix, the announcement on the 07/08 stated that the measured resource of 530,000 tonnes at 0.42% tungsten and 0.27 molybdenum is a 43% tonnage increase over the previous resource. In June, the company had investors believing they had 153,036mtu of WO3 and 1,083,046 of Mo at 0.35%. The capex was blown out of the water hence the SP decrease on news.

You see the indicated 2.4mt at 0.39% and 0.17% and the inferred 800,000t at 0.15% and 0.1% has also meant a drastic reduction in head grades which atm makes any mining not feasible. What underlines this is that the reduction in grades was due to some in fill drilling at maybe 15m X 15m which resulted in not what was expected - it did not tighten the resource - it blew it apart. The company thought they had 0.42% and 0.27% respectively.

THR was looking pretty good at one stage given the massive moly at feasible grades given the concessions the company would be granted but both the recovery and concession grades reduced unfortunately to very low levels on their current resource. The cash costs (net of credits) would have been tremendous at around -$79MTU.

Yes, moly has been increasing in price, but it is no good having low grades under the surface in large quantities -IMO, this is why THR is now of little interest (apart from it uranium) and possibly why the MOU with HNMH was terminated in April and the offtake/finance agreement was also cancelled by Penfold.

Based on this, while not impossible, I find it extremely improbable that a JV partner that can supply finance and an off take agreement will be found based on its current resource.

Hope this makes sense.