update due thursday., page-13

When reviewing a Co it is prudent to re-read their Co Announcements.
The MEP release 4th Jan 2011 is quite clear on the future of the kaolin in and around Sreaky Bay/ Poochera... they intend to mine it, process it and sell it.

The recent quarterly activities report dated 27th July 2012 also cofirms this and states.."production of premium hydrous and calcined products for marketing will be completed by the end of July. Products will be introduced to global markets during the remainder of 2012."

Further to this my resources the online portal of WA Publishers had an article dated 4/01/2011 headlined Minotaur looks to start Australias second ever kaolin mine.
It quotes Andrew Woskett... Öur studies to date suggest a starting throughput of around 50,000 tonnes per annum building to more than 100,000 tonnes per annum using two wet processing modules.... On the known resources at Poochera, that delivers a mine life of more than 50 years. Results have positive implications of the development, particularly of kaolin products suitable for pharmaceuticals,typically a low volume but considerably higher margin market."

Based on 100,000 tonnes and not the 2,000,000 that I mentioned in an earlier post the surplus would be in the order of $15 to $20M per annum which based on approx 100M shares issued is worth around 15 to 20 cents a share annually.... current SP 0.16... just a wee bit undervalued at a guess and an understatement.

Apologies for leading anyone up the garden path but we will be a miner and producer long before the Poochera is put up for sale.

Now give a thought to what if 100000 tonnes is very successful could we step production up to 500000 tonnes or more!!??

There's a thought.

kippax