the motherload?, page-35

Thanks for your kind words lex...I think!

I agree the company is now making solid progress on the ground, but unfortunately the troubles of last year have left a severely bad sentiment surrounding this stock that can still be felt today.

The main problem with this stock...and this I feel is fact, is that the coal hits are sporadic and although thick, they aren't very wide. To achieve a decent volume, we need a long strike, as well as a thick and wide seam. Unfortunately we are missing the long and wide portion (currently having trouble connecting the dots along strike and the seam thickness is only 100-300m max) so this will ultimately have an impact on the JORC. Basic maths will tell you that if we have a 3.5km strike, 50m seam and 0.2km wide, we will only get a JORC of approx 50mill tonnes assuming a density of 1.5.

We are still a while of being competitive in Mongolia.