update, page-25

whiteclive

An excellent post.

In regard to the possibility of a large orebody at depth you have confirmed everything I have been reading. My research has been through past historical reports and the Jan '07 Aegis report and also comparisons with other companies.

See my previous posts.

There is a long way to go and next drilling results need to be good again so we can't get too far ahead of ourselves. It they are good with holes around 2% Cu plus then it should move.

I think the market missed the significance of the last results and the references to open at depth. They are regularly hitting between say 1.5% - 3.5% Cu intersections over different lengths.

What we would all agree on is that there is very little downside from here. So in that sense in my opinion there is little risk now if you buy at 14 cents. Therefore, it is less speculative.

Since I started following RBM in mid January this year I have been scratching my head as to why it has not taken off, maybe not like aum/cdu did but at least to 40 cents.

You hit the nail on the head when you talked about that the market sees this as just a tailings project etc.

The current market cap says that the market sees this as having the potential to only ever be a small producer and has read literally into the 6,000 to 8,000 tonnes a year production forecasts and then has dismissed it as too small.

The market is looking for companies that can generate large amounts of cash from large annual production in the order of 20,000 tonnes a year plus, so RBM has been overlooked by many.

If we are right (and you can only have a go and make a call based on what info is out there about RBM) then this could be anything.


If any are unsure about the possibility of an underground orebody at depth (which Aegis talks about in its report) then I have found recently a Canadian company (whilst I was researching breccia pipes) that has a very similar project to RBM.

The company is Bell Resources and the project is Sombrero Butte. You will find it on their website under Projects.

The similarities are amazing. Most of their announcements on drilling results are late 2006 and early 2007. They are talking about 20 possible breccia pipes, a "target" breccia pipe resource of 10 - 20 mill tonnes @ 1.5 - 2.5% Cu with possibility of an orebody at depth of 200 - 300 mill tonnes @ 1% Cu.

I think that RBM will get to the 10 - 20 mill tonnes easy enough in the next 18 months, but if they find a large orebody at depth could it be more the Bell Resources' estimate at Sombrero Butte of 1% ?

It should be a very interesting year ahead.

DYOR.

Flipper