It looks as though Xstrata are far from writing off the El Pachon mega project (which is closely linked to EHR's fortunes). The following press release dated 3 Oct 2012 (click here) indicates that the mineral resource is 20% larger than previously indicated based on modelling of results from drilling in new areas. This is on top of the previously announced 44% increase. Xstrata also released some images of work being done on the project here. The press release indicates that work is continuing to update the Environmental Impact Statement and Final Feasibility Report. Notably, they are predicting an annual throughput of 400,000 tonnes of copper! They will need a whole lot of energy to support that project.
What is most interesting about this announcement is that it follows closely on the heels of the announcement that Glencore has increased the takeover (merger) offer. Also, the Xstrata media website states that they were hosting analysts in South America last week.
It looks to me as though the El Pachon giant was only pretending to sleep while Qatar and Glencore quibbled over the details of the merger. If El Pachon is still on track EHR should be in an enviable position.
Show us the money, Xstrata!
EHR Price at posting:
0.6¢ Sentiment: Hold Disclosure: Held
