Ann: Sipa Reaches Agreement to Divest Thaduna, page-18

Not surprised at all at this decision, its been on the cards ever since Lynda took over. Very disappointed though that D day has come and for all us long sufferers on this forum.

But interestingly doesn’t this all need shareholder approval?

Hard to tell whether this is a sign they believe they will find something major in Uganda or its more they don’t think Thaduna is worthwhile pursuing at all considering the costs involved and no JV partner willing to take it on. They just about have all the final modelling in their possession re the Geophysics at Uganda, so I am hoping they are very confident in the next round of drilling otherwise this is just blind faith putting all your eggs into one basket.

Very hard to work out what the 1% NSR will be. They don’t have a JORC compliant resource. They did have a 2012 Jorc compliant exploration target of between 50k-180k cu, and that was before a lot of drilling was done. We also know the secondary copper blanket is considered uneconomic mainly due to its depth.

We can only go off what we can see in the announcements and the words of Mike Doepel who was confident there would be at least 300k cu in just the secondary blanket. This seems feasible if one would do the calcs based on the dimensions of the blanket & average thickness etc. He also did say a while back in a presentation that he was confident that one day the richer zones would be dug up.

Sandfire may just be able to get on with the job and find the primary resource, whatever resource is in the blanket it could well be economic to them considering they have plant 30km away.

A small resource could also be outlined at the old Rooney and Ricci Lee Mines and also Green Dragon North East

So on some very rough cals -
-300,000 tonnes of cu x 2204 (converted to pounds) = 661,200,000 pounds of Copper
-Copper price per pound $3 less say $1.50 production costs?.So NSR of $1.50
-$1.50 x 661,200,000 pounds of copper = $991,800,000
-1% NSR could be worth to Sipa 10m in future cash flows but i am not counting on it thats for sure

So 10m plus 2m Sanfire Shares plus maybe 8m for Uganda is why we have a market cap of around 20m? I cant see why else its so high compared to other explorers and the market is always right.

All my opinion

Disappointed SOB right now

GV