Ann: Ammaroo Phosphate Update - 19.05.2011 , page-16

Hi Openminded,

Another fairly bullish day for RUM I thought, some good volumes in comparison with one decent crack - 350k @ .33. The problem is when the 350k sells at where I bought in they've made a healthy profit and I'll still be singing for my supper. It's difficult to decifer whether the drop has more to do with the market generally or perceived issues with RUM, or both.

I've been trying to make a comparision between RUM and similar phosphate plays but that's not easy however one things for sure. The other plays appear to have greater inferred/indicated resources than RUM if you consider the article in Resource Stocks, 2mt/pa over 20 years = 40mt.
For example MAK at Wonarah = 289mt plus the share they have in Namibia and MNB = 117mt at Kanzi. MAK's cut-off was at 10% p2o5 (averaging 18%) and MNB is averaging 13.6% Our results were based on a cut-off of 15% so maybe we have a better quality product and I know our mining costs are going to be minimal.

There was a post responding to the recent results that suggested 25% p2o5 was to low. Not from my research it's not, 25% would be regarded as high grade and we appear to have a fair area of high grade material including 30% +.

So this one is a bit complicated and I would appreciate other peoples thoughts/opinions as well, particularly those with better ideas than mine. I don't want to read posts where the primary objective is to put the scares up everyone and then bargain buy.

For what it's worth, I'm in for the long haul.

IMO - DYOR