Very good announcement by RXM. Interesting to compare it to...

Very good announcement by RXM.

Interesting to compare it to Equinox Minerals copper project in Zambia which is of a similar grade.

EQUINOX MINERALS

342.5 million tonnes of ore grading 0.74% Cu, plus inferred resources of 563.1 million tonnes at 0.63% Cu

Lumwana will process in excess of 20 million tonnes of ore each year, mined at an average mine strip ratio of 4.2:1 over a mine life of 37 years.

Mining started during 2009.

Market Capitalisation: $3.5b

REX MINERALS

100mt @ 0.7% Cu and 0.2 g/t Au with a target of up to 350mt at 0.8% Cu (plus gold).

Potential for a mining rate of 10-15mt p.a. Very good location with great access to infrastructure.

Market Capitalisation: $218m.

Now I am not saying that Rex is worth $3.5b. That just sets an upper level of the potential of what Rex COULD be worth in several years time when it starts production. Remember, we are still in the speculation stage of RXM's life cycle compared to EQN which is in the Startup phase (see below).

EQN has long been mooted as a takeover target for BHP so it will be interesting to see what happens to RXM in the long run.