You can see now a strategy in place regarding China and energy....

You can see now a strategy in place regarding China and energy. The key, for me, is that Lrl now has two and awaits the third,and most important,project.

a. Xinjiang Coal.
This will be the co maker but we must continue to be patient.

b. Mt Leyshon Gold.
I expect a jv ann in the nearish future which will take much of the carrywork to others.This will be valuable if the decision is made to produce.My guess is that at these gold levels it has a vg chance of being very very economic.

c. Zijinshan Shale.

This is interesting in that lrl will be one of the first movers in this area.It has huge potential but we will need to see the level of skill available ,quality of drilling contractors and most importantly the quality of the shales. But they are assuming the existing technical team which is a plus and the potential is very large.The 40% buyback by, I assume a Cnooc or a Sinopec (unnamed as yet) etc is a plus esp as its 40% and not 51%.Lrl will be able to dictate the pace unlike with other Chinese oil projects like Beibu etc.

The other big positive by the ann of the last month is that lrl is not a shell anymore. It means that a lot of the UK funds which departed the register can come back if they so choose.

Meanwhile we wait for the coal shoe to drop.........