phosphate potential is a distraction ann, page-5

Once they knew of Phosphate numbers on or near their ground they are pretty much required to inform market sometime soon. The area has been pegging rushed and with high Phos prices and phospahte IPO's (see POZ) even low grades can be considered of possibly price significant nature.

All they really are saying is that it has potential, and they will drill some test holes when practicable. Not exactly desperate stuff.

And who knows? Because the Phos is in free flowing sands rather than 'rock' form, maybe 5% Phos at shallow depths (at $400 or pick your number tonne) is comparable value to Mineral Sands anyway.

With little to no processing costs (beneficiation alone may produce a saleable product), easy infrastructure and local markets along with close-to-the-coast transport, why not spend a few hundred K testing it?

I agree it may look like a distraction, but I see it as just a logical step they had to take. They have more than enough cash to look at any side of the economic equations.