Ha, it won't be 50% copper, but it also won't be nothing.
It is a great result on an existing resource, virtually guarantees the inferred resource will be upgraded to indicated, and then gives an extremely high probablity of resource extensions. All with high grades as well. Let's wait to see the numbers when the resource is upgraded.
The end result is that Xstrata will be more keen to buy the asset once it is de-risked. They prefer to pay a premium for de-risked assets rather than get them cheap at an earlier stage. If they don't want to pay up, we'll do a toll arrangement with it ourselves. Kangaroo Rat and Mt Colin have enough resources currently for 5 years of production.
At the moment, the asset is given zero value in the books even though it was previously worth around 20m (i.e. 6c per share). It will be worth more once the resource is upgraded and the market will finally notice once we monetise it.
EXS Price at posting:
18.0¢ Sentiment: Buy Disclosure: Held
