12m mc, 3m cash, 400mt jorc!! 2bt target!!, page-55

No worries jonty. I'm not sure how long you are planning to hold for, but over the next 6-8 months of the year, I am confident that Hodges' share price will come on in leaps and bounds. Let's not forget that even after the little rally over the past few days, HDG's market cap still sits at a miniscule $20M.

Willem, you are right. Not all of our coal will be exportable, and only a portion of the exportable coal would come close to qualifying for Grade A export sales.

However, even though the JORC inferred resource of 414Mt has a relatively average CV of 21MJ/kg and an ash content of 30%, you will find that various sections of the coal will be of a higher CV (~22-23 MJ/kg) and a lower ash content (~25-27 %). This is the stuff that we should be able to beneficate up to the standards for at least Richards Bay export sales. Naturally part of the coal will have lower qualities than the JORC 'average', but this will just be sent off the the local power station for domestic sales if I'm not mistaken.

As for your last question, just have a re-read of the announcements again to familarise yourself with the individual options up for grabs.

I'll summarise it again.

Prospect One (with the 414Mt JORC, 1.2Bt target)
75% interest for $3.5M
99% interest for a further $2M exploration fees, and 10cents per tonne on just the indicated resource at the time. Note this does not include inferred resources.

Prospect Two (1.3Bt target)
90% interest for $70M

It is important to note that even though the second prospect is more expensive to acquire, the quality of the coal is better. If you take an average from the table of drill hole data in the announcement...



...you get a CV of about 22.5MJ/kg, 28% ash, and a lower sulphur figure. This is about an 8%-10% better 'raw' product than the first prospect.

Hopefully that helps answer your queries. If not feel free to ask for clarifications.