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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Nikole Wollerstein who wrote (46756)	12/7/2005 8:43:27 AM
From: russwinter	Respond to of 110194

Drenthe would be a near surface open pit mine, plus it will be very long lifed. They need to get this to feasibility study (were suppose to have pre-feasibility out in 3rd qt and didn't), but scoping studies estimate a robust 25% IR, using only 375 Au, 650 Pt, 250 Pd, and 4.00 Ni. A good portion of the drilling done since, has picked up some stronger grades. The scuttlebutt is that they will pick up an existing mine in a deal with Angloplat, and that will bring capex down even further. ANO used 7:1 rand/US in it's assumptions, and that is currently 5.35/1, so that's a problem, so to a good extent it's a currency play. If the Rand weakens (which I think it will) and the pieces fall in place, the economics will be superlative. ANO is what I would call a missing puzzle piece play. There have been many of these in this sector, and I've always like to play them, and successfully, because once key pieces are put in, the value is greatly enhanced. That is especially so with this one, because the resource is being valued strangely low (issues or problems overly discounted) and the reward very high should the pieces be played.