some questions on bau, page-4

Buffet - Not JORC, before JORC was in, is the excuse used if I remember correctly...

And all samples were <12m... Again, if memory serves.

In Regard to access to all sites/tenements??? Don't think anyone can answer that - unless they work in the gov/indig. Approvals department LoL :)

Pat

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http://www.mpr.wa.gov.au/wamex/item_details.asp?m_num=2380&sub_num=1

"Substantial exploration for bauxite estimated "A total of about 137,230,000 tonnes of bauxite averaging 28.9% extractable alumina and 2.25% soda loss ... for areas held under current agreements {minerals to owner ground} or mining tenements. An additional 30,732,000 tonnes...averaging 28.9% extractable alumina and 2.22% soda loss is calculated for areas not currently held."
No further work after 1981.
Aerial monochrome photography (1:24000 scale). "
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http://www.mpr.wa.gov.au/wamex/item_details.asp?m_num=4226&sub_num=0

http://www.mpr.wa.gov.au/wamex/item_details.asp?m_num=43&sub_num=0

"Exploration for residual Tertiary/Quaternary lateritic bauxite developed on Archaean granitic and gneissic basement. Scout drilling along forrestry tracks and areas selected visually on the ground and from monochromatic aerial photographs disclosed a wide variation in ore thickness and grade. 2368 holes for 6891 metres were drilled to an average depth of 2.9 metres leading to an estimation of 25.5 million tons of bauxite of an average grade of 34% available alumina.
Note: No formal report submitted."
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Reference to 2008 Qtrly, Pg 2:
http://www.asx.com.au/asxpdf/20080430/pdf/318wsk64fpwcx2.pdf

"North Darling Range

BAU has moved quickly since listing on the ASX to complete an initial data review of historic exploration and resource data estimates made on the Chittering Alumina Project by Pacminex. The review has identified areas in the North Draling Range to have the highest potential to yield >30 million tonnes of direct shipping Bauxite"
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Theoretical DCF - Fair Value 8-yr Projection
** Completely Imaginary - BAU Doesn’t Even have a JOCR Resource, DCF is Art not Science **

30,000,000 ton, shippable Ore
Resource Value of 1.5 Billion

2,000,000 t/pa ramping up-to 6,000,000 over 8yrs

Bauxite Price Per Ton 50p/ton, peak 70p/ton, taper 35p/ton

Bauxite Cost Pet Ton 29-35p/ton Range.

150,000,000 CAPEX to start the project
40% Equity, 60% Debt

Debt Paid off over the 8yrs.

Avg Free Cash Flow: $36m/pa

Fully Diluted, w future dilution 233,000,000 shares

Fair Value = $457,000,000 MCap, $1.96ps, f-PE 10
NPV @ 5% = $279,000,000 MCap, $1.20ps, f-PE 5
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