what's happening cgv?, page-15

SG,

I just don't agree. None of those mines are Surat quality - they are in the Sydney/Gunnedah Basin which is much higher rank than the Surat. They are also sited close to infrastructure and close to industrial areas - what is economic in Wollongong or the Hunter is not in the undeveloped Surat - or even the somewhat developed Bowen.

Wallarah doesn't even need washing - it's NEWC grade straight out of the ground. I will be interested to watch its progress, I bet it won't be a barnstormer of a mine.

Appin is hard coking coal. I'm not really familiar with any of the Centennial mines but from what I can see from a quick google most of them started around 150 to 200m deep - if they are down to 400m it's because they are chasing the seam downdip.

At any rate the NSW coalfields are not a good analogy. Better coal, better developed, lower cost.

...the shallow Surat coal isn't going to last long...

I don't agree with that, there must be at least 100 billion tons of coal between outcrop and 400m in the Surat, in the Macalister seam alone (200km long, 50km wide, 8m thick, density 1.4t/m3). Probably more. Underground mining in the Surat will start at 120m, along with open-cut. Then it will shift to 200m. Then 300. And by then it will be at least 100 years into the future. I doubt we'll still be mining coal and if we are, you and I won't be in a position to care about it.

The irony is, that Surat tenement would be much better as a UCG-GTL site.

4 chips holes and a cored hole could confirm an initial small-medium JORC resource, a substantial Exploration Target resource and put some value back into the stock.

Do you think 20Mt of inferred, super-deep, coal would put any value into this stock? That's the sort of coal that might get a value of a few cents per ton. At 3c/t that would be $600k value. Less risk to hang on to the 500k cash.

In most circumstances, a company in this position would be best served by using historical drill holes to JORC it up - maybe drilling a couple of holes to infill or cover data gaps. But I'm not sure there are even any number of historical holes to speak of in this tenement. Nobody was chasing 500m deep seams back in the 70s.

I'd prefer them spending some money on something rather than sitting on their backsides doing nothing.

I agree. I just don't see the point in putting good money into bad tenements. I'd rather see them invest in a new asset. I just don't know what they can get with the limited money on hand. I agree with you though that it is imperative that management do SOMETHING. Because sitting on their backsides will chew through that limited cash on hand just as thoroughly as drilling.