re: metallica goes bigger again, page-5

re: metallica goes bigger again Re losing money – maybe share where you see the red flags waving?

NORNICO Nickel is flagship project, start-up if pre-feasibility and feasibility study, etc are favourable, for initial heap leach nickel operation is projected as early as late 2007, to be situated at Bell Creek. The Greenvale nickel province was previously mined for many years, so it is not a “greenfield” operation, but there are new-generation technologies now. MLM happy with progress at demonstration plant. Patents for heap leach nickel technology being applied for. (Unknown future value!) Bauxite - Chinese and Russian interest - true value yet to be realised, and if Xinfa exercise their option to buy 10% of MLM's 50% stake in Cape Alumina, will pay MLM over $4.6M.

Aeromagnetic survey anomalies not fully tested - Kokomo East - drilled to 184m - intersected weak copper mineralisation - and found the conductor lies below the existing hole - second drill hole to be drilled to fully test the Kokomo E. conductor.

Silver Hills - Base Metals Prospect, Greenvale Nth. - Lead zinc anomaly - 20 kms e of Balcooma Cu-Zn mine -to be drill tested further.

Prospect prospect - anomaly followed up but nothing economic found (from Qtly). That's normal in exploration, some prospects are dusters.

The MLM Greenvale tenements are prospective for other base metals and precious metals; a scoping study for NORNICO project has projected favourable financial returns at much lower nickel prices than current prices; Kagara Zinc is major shareholder and now has a representative on the board.

Will divest or JV non-core assets (as with coal assets).

OK, there is one thing I’m cautious about, a swag of oppies due to be exercised by end of year.

(I have no investing sentiment for MLM; there is much "forward looking" rather than "proven" here. MLM’s strategic vision is to move from explorer to producer. This always involves uncertainty. Note exercise date of oppies 31 Dec. Please DYOR.)