weekend talks...but with whom...

In August 2001, MIM managing director Vince Gauci made the following statement regarding Ernest Henry's expected mine life...

"Alumbrera and Ernest Henry are similar types of operations - major open cut, copper/gold deposits and at current production rates they've both got about 10 years mine life left.

We don't expect a significant increase in the reserve position of either because they've both been extensively drilled. We therefore have ten years to find and develop replacement orebodies.

We've maintained an active exploration program, consistently spending $25-30 million a year over the last five years. The majority of that has been for finding copper resources. We have programs in Australia, particularly around Mount Isa and Ernest Henry, and in Argentina and Mexico."

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That was 5 years ago, suggesting perhaps only 5 or so more years left at most today?

Ernest Henry has since been fully taken over by Xstrata...but that does not change the fact that, with viable production nearing and end, a replacement needs to be organised now!

If AUM were given the green light for development of their Rocklands copper project tomorrow...they would still only just manage to get things up and running in time to replace a depleted Ernest Henry.

Perhaps this might explain the apparent speed with which AUM are progressing this project?

Xstrata, or perhaps someone else, would be mad not to be in dicussions with AUM at the moment...and given their current share structure, guess who would be well and truely in the driving seat?

We can expect volatility near term...but higher prices are a certainty.

Buy on dips or sell on spikes if that is your thing...but I suggest you maintain a core holding for the dreaded trading halt, that could come at any day!

Big discovery...big project...big players...big money...might also need big kahuna's to ride it through.

Cheers!