Ann: Indicative Offer for CEN- Monument Mining Li, page-7

re: Ann: Indicative Offer for CEN- Monument M... Now that I've retired from racing I've had a bit of spare time to do some research:

Monument state they want rock phosphate to treat with their sulfuric acid from Mengapu Project in Malaysia which is fair enough.

Mengapur deposit was discovered in 1979 but is still not a mine. Mengapur is a polymetallic deposit which includes sulphur and iron. The sulphur will produce the sulfuric acid.

Monument do not have the iron rights due to complex deals prior to Monument aquiring the project between 2011-2013. Because they do not have iron rights it is possible they cannot mine it and make money, therefore they have deferred a 66,000m drilling program to instead drill out a nearby deposit called Star Destiny.

Star destiny has an oxide zone and a supergene zone (neither of which contain sulfur) overlying a sulfide skarn bedrock zone.The Monument website states they will drill 13,000m of drilling in 2012-2013 and then complete a report on the viability of the oxide and supergene zone. A study on the sulfide zone would probably be done later.

So, in summary if Monument wanted to produce fertiliser in Malaysia from Arganara rock phosphate the following would need to happen:

1. Drill Star Destiny and see if the sulfide zone is economic to mine and see if there is enough sulfur to feed a sulfuric acid plant, then build a mine and sulfuric acid plant
or
2. Drill Mengapur for a total of 66,000m and see if they can still make money considering they don't have iron rights, then build a mine and maybe a sulfuric acid plant if there isn't already on at Star Destiny
3. Drill about 100,000m at Arganara and do metallurgical work to get measured phosphate resources and convert to reserves to mine.
4. Raise about $250 million minimum to get a mine up and running and sent their phosphate to Malaysia

Piece of cake in this current market.

My tip would be for CEN shareholders to take anything between 2.1-3.1c at the moment while they can.

If Monument are serious then expect phosphate to be exported from Arganara in about 2039, but do you really think they would buy CEN now when they can't even be sure they can mine sulfur/sulfide and produce sulfuric acid?????????

Check out the Monument website and read for yourself