The Jervois Puzzle

Here are the real correlations between Nov 2012 and Sep 2014 as extracted from this mornings upgrade.

Marshall/Reward
Nov 2012 8.3MT @ 1.35% Cu, 29.30g/t Ag - 1.64% Cu Equivalent
Sep 2014 12.1MT @ 1.12% Cu, 24.16g/t Ag - 1.35% Cu Equivalent (1.46% Cu Eqv with gold credits included)

Bellbird
Nov 2012 4.4MT @ 1.13% Cu, 7.3g/t Ag - 1.2% Cu Equivalent
Sep 2014 7.2MT @ 1.23% Cu, 7.8g/t Ag - 1.31% Cu Equivalent (1.39% Cu Eqv with gold credits included)

Green Parrot
Nov 2012 0.7MT @ 0.97% Cu, 1.18% Zn, 2.52% Pb, 93.5 g/t Ag - 3.09% Cu Equivalent
Sep 2014  0.2MT @ 1.49% Cu, 44.3g/t Ag - 1.49% Cu Equivalent
Sep 2014 0.9MT @ 0.90% Cu, 1.21% Zn, 1.91% Pb, 85.3 g/t Ag - 2.70% Cu Equivalent

Bellbird North
Nov 2012 0.3MT @ 0.72% Cu, 4.53% Zn, 2.71% Pb, 27.4 g/t Ag - 3.38% Cu Equivalent
Sep 2014 0.5MT @ 0.65% Cu, 3.38% Zn, 2.3% Pb, 21.3 g/t Ag - 2.68% Cu Equivalent

NEW Sep 2014
Rockface 0.7MT @ 0.82% Cu, 3.1g/t Ag - 0.85% Cu Equivalent
Cox's Find 0.7MT @ 0.87% Cu, 2.8g/t Ag - 0.90% Cu Equivalent
Marshall/Reward Pb/Zn 0.8MT @ 0.63% Cu, 1.09% Zn, 6.8% Pb, 71.2g/t Ag - 3.76% Cu Equivalent

There are only one set of numbers any analyst is interested in before they even bother to look at the resource further. Are there any pay zones and if so where are they. In the current Environment unless your a billion tonne porphyry system 1% type Cu grades are just not sexy. Although they may be economical over the life of the project, its only the size of you high grade zones and their proximity to the surface and one another that count in the early stages of a project.

The Company need to get back to the drawing board and outline the high grade parts of the resource and give the market an indication of how easy it should be to recoup any initial investment. Now the insitu value of metal at Jervois is approximately $3billion with further scope to quickly tap this way past $4billion in the short term. Now although that looks sexy on its own - I would much rather the Company show the market that there is nearly $2billion of that resource sitting at or near surface grading at 2%Cu and above.

Take a look at the impact of the small resource areas of Green Parrot, Bellbird North and Pb/Zn zone at Marshall/Reward. In about 2.4MT of dirt you have over half a billion in insitu metal value.

Bankable Grade Resources ($540million - small high grade)
Green Parrot 2.7% Cu Equivalent
Bellbird North 2.68% Cu Equivalent
Marshall/Reward Pb/Zn 3.76 % Cu Equivalent

Anyway I am not at all surprised. Very few Company's have any idea how to market themselves.

IMO DYOR