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The $6,700 per tonne refers to an assumed value of copper per tonne - the commodity price. At the assumed grade of 3 percent copper per tonne that equates to $210 per tonne of ore. By way of value comparison 3 percent copper is equivalent to about 5g/t of gold - the majority of gold operations have head grades of 3 g/t or less although underground mines would average closer to 4 to 5 g/t.

Another comparison that can be made is with direct shipping iron ore which currently trades at about $100 per tonne, ie 3 percent copper is worth twice as much as DSO iron ore - underground base metal mines are not really comparable with open cut iron ore mines but it provides a bit of an idea for of the value of an orebody with a grade of 3 percent copper equivalent.

The other point is that PEX now have the rights to 50 percent of Mallee Bull so the assumed 4 million tonne resource is divided 50/50 between PEX and CBH. 2 million tonnes multiplied by $210 dollars equates to a value of about $400 million. Ten percent of that is the $40 million I previously mentioned.