mumbwa update., page-22

Much here depends on grades and whats there Wilf.

If the grades can be pushed upwards of 2% Cu with a decent % of Au then it may well come into
Kansanshi-like mineable deposit calculations.

I think this is what Andrew is getting at in that the deposit may be smaller BUT if the grades prove to be higher and more localised then it may well become feasible on the basis of the size AND grades for medium sized underground op which means Aim MIGHT be able to handle it on its own,if not then maybe JV'd with another company.We have seen EQN be able to push through Lumwana with Chinese backing I cant see why a feasible Mumbwa Op would be any different.

China will take all the Cu it can get if they can put their foot on it in this country(they have invested quite a bit in Zambia already)the way the Cu stockpile is going.Sth America is also becoming percieved as unreliable in terms of consistant suppy with all the strike problems of late.The more Cu mining is diversified around the globe,the less they depend on one supply line.

It may well be that BHP is just happy to have a partial holding in Mumbwa(say 50/50)rather than relinquish all ownership of Mumbwa to the Chinese.Some control of such production is better than none.

I think much depends on what Aim has NOT told us in this regard,thats IF there is anything they havnt told us.This is where the circumstantials of the

*significant holders

*the non-mention of Ur at S-36 even though it had a decent Ur signature and

*the fact they are waiting for Perkoa investors to take position prior to POSSIBLY anncing any more info on Mumbwa(imo this will happen on confirmation[more drilling]of such occurences as zny mention of Ur may well blow the sp out of this level of accumulation)

come into play.

Now I know what Your getting at Wilf,we are speculating again too much and possibly playing into the hands of the momentum/annmnt traders.But I think Ecn brings up a valid point here too.IF this is the start of a 40c+ run we can PERHAPS surmise that there has been some significant accumulation at mid 30's.Patient traders and the working of the stock whilst the sun dont really shine(?)-Perhaps.

But these are vexing questions(to me & others-and perhaps what we'd like answers to at the EGM) particularly when all this circumstantial stuff is cross referenced with the take up of the recent unit issue by O/S investors and of which the escrow receipts hints heavily at a TSX listing at some stage in the near future.

One of these questions being why these guys have put in a large chunk of cash for Perkoa development and Mumbwa exploration?But then factor in the POSSIBLE development OR aquisition of something rather substantial 2-3 years down the track with these escrow receipts.

If you are worried re TSX participation then all I can reflect on is just how well Anvil have done in recent times.Imo they would not have had the necessary capital backing to do what they have done in the DRC and allow the company to expand rather than just become a one-project wonder.

Much of the way this eventually works out depneds on the talents of Aim management to lock down good projects going forward and this is where Perkoa gives Aim the whip hand in that any further project expansion/addition will be looked on kindly by debt lenders as they should have solid cashflow from Perkoa.

d.