If you just take the time to use that wonderful research tool google and then use google translator you will see that the Tesiktas Copper Project has a Russian C1 reserve of 560,000 contained Cu and a further C2 resource of 780,000 contained Cu. Let me do the math for you -70% of 1,340,000 contained Cu tons interest for how much?
What is amazing is that half of the C1 reserve is open pit mineable to a depth of 200M with a max strip ratio of 6:1. �It starts at surface and has a starting strip ratio of 1:1. A tier one asset of this type is usually only in the hands of majors like Kazakhmsy PLC and Barrack Gold Ltd out of North America. �A conservative number crunch shows there is US$9B of contained metal (at ROS 70%) there at today's price. Deutsche Banks latest copper report forecasts that the red metal will be US$11,500 average in 2012. This is a very valuable asset.
This size resource supports a large crush/grind/float Cu concentrate plant at around 50,000 ton per annum. Nice size , nice cash-flow and someone like the Nobel �Group (http://www.thisisnoble.com/) in HK would give these guys US$100M via a C-note (no shares issued) in return for an off-take agreement in about five seconds. �That is if they last that long. The clever management will be able to secure the 70% by buying 10% at only US$14M as �by this stage they are de-risking the whole project by spending a few hundred thousand. Show me any explorer with the exception of Sandfire in Australia that were lucky enough to find something of similar size (Tesiktas has more contained metal, starts at surface, has water and power, rail and is only 3 hrs drive from China) by spending less than $400,000 and only having 25.8M FPO shares trading on the screen? �My friend who works for Kazakhmsy PLC (LN:KAZ) actually called Smith to congratulate him as they had been after it as well. When my friend asked Smith if he wanted to sell it the cheeky sod turned around and said the code is ROS, just think of a figure between $11 & $20 and make your on-market bid because he said he would be flying to North America to talk to Inmet in Canada and Barrack in US to let them know he isn't going to make it hard for them to take ROS over... Ha ha he knows what he has good on him for being so cocky!��
Kazakhmsy has big producing copper Assets around this project so I can't see them allowing the North Americans to buy it.�
What management of Red Oct has done is nothing short of amazing. �They have secured the project for US$250,000. They get to spend a very small amount of money in a short period of time and create huge value in a short space of time. And by the looks of things set themselves up for take-over, at least that is the message I took from their recent presentation. Nice move though - smoke and mirrors talking about gold and then deliver a massive copper asset.
Word in Central Asia is they have secured a huge precious metals resource for penny's in the pound. Can't wait to see this guys next move.
Once I work out how to use this site I will drop in the simple 3D model we did on Tesiktas. There's no scale but you can see that it is massive and very easy to mine.
Good luck to you all as you are not getting my stock at these levels as I am going to wait for a decent payday. Someone was telling me this guy turned a 20 cent stock into $12 not so long back and it looks like he is going to do it again!
ROS Price at posting:
27.5¢ Sentiment: Hold Disclosure: Held
