update due thursday., page-9

Hi teamsky

I think that I have made a rod for my own back in spruiking some guesstimates of future SP. I must confess that my targets were more gut feel than anything else and based on the spectacular action witnessed in the SP of MTR from the Prominent Hill discovery to the Oxiana sale. From memory the shares shot from about 15 cents to $2.00 or more.

However that aside it got me thinking about the value of the 3 major assets
1) kaolin at Eyre
2) copper at Cloncurry
3) magnetite

Ech one will take a bi of research to ty to value so I will try to dig up dollars for each resource.

I started with the kaolin and have come across a fantastic project analysis off the Bovrill Kaolin Project, Latah County, Idaho prepared by SRK Consulting 18/01/2012 so it is very up to date.

www.imineralsinc.com/i/pdf/reports/Bovill-Kaoin

Some of the summary figures are: approx 40M tonnes of kaolin inferred resource. Capital cost to start mining $55M. Operating costs $65 per tonne. Running costs per yer over 25 year length of mine life $10M

Gross income $232 per tonne ,operating costs $65 per tonne to give an operating margin of $167 per tonne . Presumably fro the operating margin you the need to deduct the set up costs of $55M and the $10 M per year robing costs.

Assume 2M tonnes per annum at $167 gives total of $334,000,000

WOW this makes my brain hurt...the numbers are so huge....these figures are US dollars. I am going to recheck report and dollars and would appreciate any feed back before by abacus goes into meltdown and before I start to look at copper and magnetite.

kippax