SMD's exisitng resource is medium-high grade when considering that (at 1% cutoff) they have over 50,000 tonnes contained copper above 2% - the average grade of copper producing mines is 0.7% - so SMD's initial resource is roughly 3x higher than world average.
Coupled with close proximity to Mt Isa processing facilities there is also the option of toll treating the resource if they did not want to build.
Also I do not agree with your opinion that a JORC classification is not relevant - JORC resources are the measures by which bank will arrange financing and potential takeover suitors will assess - eg look at CDU when they released the JORC resource earlier this year they had dropped massively because the market was expecting much better with drill results.
When you look at existing resources at Barbabra + the plethora of exciting exploration prospects in the area - at $13m marker cap is pretty darn cheap!
SMD Price at posting:
18.0¢ Sentiment: Buy Disclosure: Held
