Does the change in reserve grade really mean anything tangible. Is this because of the section that has been drilled so far. I see that they have not reduced the total resource statement so this would indicate they expect the total reserve to be the same. This may not be clear until the next report which could be 2-3 months. RXM has always had a lower grade than Prominent Hill and some other deposits but had the advantage of low Capital and running costs combined with credits from Iron and Gold. The share price is being killed by the copper market and resources sentiment at the moment. This will change in the time but the grade issue is the important one long term. It is probably why there has not been a takeover so far. OZL and potential suitors are just letting RXM use up its cash proving the reserve. If the reserve is similar to the resource statement then they can take RXM over and have a mine in a year or so without much risk.
RXM Price at posting:
53.0¢ Sentiment: Hold Disclosure: Held
