my pie in the sky calculations on mox

Just been dreaming and doing some numbers in my head. I got my boss onto MOX last week so I have an easy time at work at the moment and can afford to waste my time doing this.

Numbers below are to test the potential of their discoveries.

According to the gravity surveys the whistlepeg prospect is approx 3 x 1km and the woodchuck 2.5 x 1km. Assuming the economic zone isn't as big as the anomaly - lets say its 50% of the anomaly.

The intersections have been 150m+ of mineralised rock with visible bornite/calcopyrite (copper sulphides).

Assuming not all of that is of economic grade. Lets say the economic width is 50m in total and that grades are on average 1.5% copper equivalent (i.e. including gold credits). Note: see end of email for equivalent grades of other IOCG deposits.

Assuming a Specific Gravity of the rock of 2.5 (couldn't find what the SG for Olympic Dam/Prominent Hill was. Should be about right though).

Total tonnages =
- Whistlepeg: ((1500m x 750m) x 0.5) x 50 x 2.5 = 140m tonnes
- Woodchuck: ((1250m x 500m) x 0.5) x 50 x 2.5 = 78mm tonnes

total: 218mt @ 1.5% Cu
total contained copper: 3,270,000 tonnes
total in ground value: approx $20b (using 27 month forward rate = $5880 on LSE).

Closest comparable company I can find at the moment is Cudeco.

Cudeco: approx 59mt @ 2% Cu - market cap - $300m (with some brokers thinking its worth over $1b, has been trading at a discount ever since the ASX made it revise its resouce statement, which Cudeco have subsequently proved anyway).

Based on tonnages alone - Cudeco has over $7b of contained copper.

Based on tonnages alone - MOX should be worth 3x CDU = $900m (assuming CDU is not trading at a discount, which it probably is)

Difference to Cudeco:
- deposit is at depth
- more expensive to extract, cannot extract as fast as Open Cut as it is likely to be a decline.

Give it a discount of 30%

Potential value: $630m

Market cap of MOX @ 0.85c = approx $24m

Target price if dreams come true: $22.

I'm quitting my job if that dream comes true!!

Conclusion: potentially has a long way. Lets start praying for some good assay results!!!!

Acid test of the above figures:

Prominent Hill is another IOCG deposit in the Gawler region. It was a 1.5 x 0.5km anomaly. Width of mineralised zone was 20m to 150m. Grades/resources were: approx 118.7Mt at 1.3% Cu & 0.5g/t Au. Contained metal 1.54Mt Cu & 1.87Moz Au

Carapenteera is anothe IOCG only 30km away. Assay results from the discovery holes there include 73m at 2.89% Cu and 0.4 g/t Au from 476 to 549m; 58m at 0.94% Cu from 549m.

Olympic Dam is the dream IOCG type deposit, also in the Gawler region. Olympic Dam has proved and probable ore reserves of 761 million tonnes at 31 December 2004 at 1.5 per cent copper, 0.6 kg/tonne U3O8 and 0.5 g/tonne gold (note: the reserves have now been extended to well over 2 BILLION tonnes). It is the worlds 4th largest copper mine (largest after the planned expanasion) and largest uranium mine (with 40% of the worlds reserves).

Conclusion: the above estimates may be very conservative and dont take into account they have 8 other targets nearby or that assays may return economic values of other minerals!!