gd job management on announcing the expanded program today!! i...

gd job management on announcing the expanded program today!! i feel that shareholders should be happy about this news!


two things to point out in this post with the ann of the expanded program:

A. Resource upgrade-
we have to look back at the previous Wowo gap drill program during 2007.
before the program - RMI has a JORC of 120MT
at the end of it - it's been upgraded to 200MT.

in the current program, the 240 drills holes will check out the limonite profile to increase the resource estimates and to check out the Southern extension of mineralization at Wowo.

so by how much will the JORC will raised after this round of exploration? it will be closer to the global estimate of 307MT (provided by the PNG gov)!



B. Speed of drilling
Limonite's closer to the surface so prolly drilling to depth of 10m instead of the 20+m during the 2007 program. hence the speed of drilling (ATM it is going at 3 holes a day with just one rig)
with the other rig to be commissioned soon, the # of holes drill a day on average should be increased.


it should be noted that RMI is operating these drill rigs themselves. this is a scenario of killing 3 birds with one stone.

1. it will substantially reduced the cost. 240 holes for the price of 200 holes if it was contracted to others, so thats a ~20% savings.
2. a problem i notice while looking thru the previous drill program was that, the contracted drillers at one point were 8 weeks behind schedule. drilling by RMI crew will be more committed to the program timeline
3. the involvement of locals factor (as ww and bomber pointed out earlier)


trees wrote this earlier and its very true. so dun mind me pasting it again.

"What I am interest in is the expansion of the resource, this will be the prime mover.

Reasons:

More resource more money long term for Shareholders


Increase in global resource causes:

Mine life increase

Extraction end price reduction (economies of scale)

Big players will take notice

Potential buyers of product have a more secure supply

Further land acquisition

Stonger case for funding





Once the Global resource is improved, RMI will be in a better bargaining postions and the SP will be higher.

The next few quarters are going to be interesting.

Now to come up with a slogan for RMI. Live the dream"



with regards to JV, the Company are in talks with a variety of parties and thats all i know. gd luck to all holders.