What fantastic results at the very highest grade of resource. The most fantastic thing about this is that it’s been done at 50m spacing not 400m. The difference is that the resource is an indicated JORC resource as opposed to an inferred resource which is what a lot of the small players have when they first start out. This indicated resource is what starts to attract the big players/institutions (mind you SOL have been on board for a while now). An indicated resource is obviously required for production (therefore revenue).
Unlike other resources that have been smashed in price of late eg Iron ore, phosphate as held up well. As they keep saying people are always going to have to eat and the world’s population growth isn’t slowing.
Phosphate is currently at $175 per tonne, Rum is aiming to have a 1 billion tonne resource. Some basic maths says Rum is well on its way to being something special. $175 x 1,000,000,000 = $175 billion of resource. Forget about what iron ore did for FMG, Phosphate will be the next big thing (if its not already)
We already have the backing of a big player in SOL which is a testament to how well RUM is going, very few small caps can claim to have the backing of a $3billion company. This is such an advantage when your about to go into production. We have seen where SOL took New Hope, it’s about to happen with RUM.
RUM Price at posting:
22.0¢ Sentiment: Buy Disclosure: Held
