SOL keep increasing their holding and probably added another 1m...

SOL keep increasing their holding and probably added another 1m yesterday.

You just have to look at where they have taken NHC (60% shareholder) to and you start feeling all that more confident about RUM.

SOL dont invest for a quick turnover or double your money sort of punt.

When they started becoming a major shareholder they would have anticipated that some time down the track they will be required to take RUM to the next step of having an operating mine that is in production generating huge dollars per annum.

Looking at the quarterly you can see RUM have been flat out drilling and nothing will change in the upcoming quarters as they go full steam ahead to upgrade their 250mt deposit to their goal of 1 billion tonnes.

Even with all this drilling, RUM won't run out of cash for another 2 years with over $13m in the kitty kat. Unlike the O & G industry, RUM can have a couple of rigs working and only go through $2m per quarter.

Of course the thing that makes RUM so much more attractive then its competitors and makes the feasibility of an operating mine that more likely is its proximity to railway and the high grade resource is at shallow depths.
No doubt this advantage that an operating mine will have is what attracted SOL. They are thinking of the dollars in the future, not just drilling results now. While all the other small cap players get held up for years with finance and getting their mine up and running, RUM will be sorted.

A 1 billion tonne resource at $175 a tonne and say at 50% recoverable high grade = $87.5 billion mine. 2m tonnes per annum mined = $350 million per annum.

Below are some key points in the quarterly that indicate that the next quarter should be very busy in obtaining some spectacular results. They are not resting for a minute and the good news will continue to flow.

The 250 million tonne deposit is attractive in comparison to other Georgina Basin deposits as it lies only 80 km from the Darwin-Alice Springs railway; it contains high-grade material and is relatively shallow.

A program of step-out and infill resource definition drilling has progressed during all of the 2012 field season with the aim to upgrade the JORC resource status.

Figure 2 below depicts the area of shallower mineralisation where commencement of mining is first likely to take place. Ore reserves within this area will be compliant to Indicated JORC status once all data has been plotted, prior to completion of a Feasibility Study.

A high-grade portion of the Barrow Creek 1 Deposit has been identified as having the potential to produce a Direct Shipping Ore (DSO) product

The bulk of the Barrow Creek 1 Deposit has responded very favorably to beneficiation with a high-grade concentrate produced at bench-scale. The flotation work carried out to-date has focused on de-sliming followed by flotation to remove aluminium, iron and silica impurities. Further larger scale work is planned for the coming months to better define processing costs and further improve phosphate recovery and concentrate grade.

Karinga Creek
The Joint Venture partners are particularly encouraged by the high flow rates at depth from Aquifer 2 in small diameter test holes and we look forward to the pump testing program which will commence immediately

A follow-up drill program will be planned after information from pump testing has been reviewed. The pump testing data will show how close bores can be spaced in the better flowing areas of each lake. Depending on DoR approvals, it is hoped that a follow-up drill program can be completed by the end of the year at which time an updated resource estimation will be released.

Oh and on top of that next quarter we will be drilling for copper and nickel.
ROSS RIVER / ALICE SPRINGS PROJECT (RUM 100%)
This project area has defined targets for copper nickel-PGE, iron and uranium mineralisation and untested magnetic anomalies under cover.
Drilling will proceed in the next quarter immediately after approvals from DoR.

Just have a look at (SIR) who recently reported good nickel and copper results.