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Well MF couldnt have written the script better with zinc up strongly again last night and well past where I thought it would get to in the medium term.The funds obviously think there is now an added pickup in demand in the US(???) and Europe for base metals to add to China's.Not only this but there are signs India may well be kicking on a lot earlier than first thought.

The trade in zinc is still volatile with a large increase in cancelled warrants last week but then not a great deal this week.Added to this is yet another reasonably significant warranting of over 3,200t in Singapore so someone in China is still producing enough to outstrip domestic demand for their product anyway.

But in the end the important thing is zinc is continuing its trend(bounce?) up ftm and that augers well for AIM as it increases the perception of just how comfortable the debt lenders would feel when actually sitting down to sign on the dotted line for the US$80M.

As far as the chances of a signed,sealed and delivered debt deal go in the near future I would think much of the faith North Sound have put in AIM would have been on the basis that they have significantly reduced the time to production and this would rely heavily on that debt deal being done within weeks so that Byrnecut can start the decline and those bigger process plant items can be paid for.I get the impression(feel) that AIM have put themselves on a tight timescale now and they are working this timescale on the assumption that its just red tape to go through for the debt much like the exploitation license.Lets hope the implied comfort that the debt lenders have via the AIM comment re the lack of required fixed zinc price are on the mark.

Was MF was trying to simply pump the market with his recent comments re the debt?

These are the sort of comments ASIC seem to be keeping a much closer eye on these days and imho I dont think he would make such comments lightly after all the hoo haa over misleading comments made by Hardies Directors.

d.