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Strategies & Market Trends : Ride the Tiger with CD -- Ignore unavailable to you. Want to Upgrade?

To: TheBusDriver who wrote (70500)	12/29/2006 11:12:11 AM
From: zoo york	Read Replies (1) \| Respond to of 312611

Hi Wayne! Thanks for the link. The resource estimate for Cordero is about 15 million tonnes, with an a average grade of about 50 gpt Gallium, and a total resource of 722,000 Kg in the indicated and inferred categories. I went with an estimate of $600/kg in my asset value assumption, but Gallium does not have a spot market, and all sales of the metal are contracts between consumer and producer, so some of the published numbers are low because those contracts were arranged before demand for the metal increased. I am expecting that once all the assays have come in from the fall drilling program, we will get a revised resource estimate to show more than a double of the current tonnage, and higher average grades overall. But the biggest part of the story that is still pending will be the metallurgy testing to prove that the metal can be extracted efficiently. Once that is in place, then the end users of Gallium will be calling GCU to try and close a deal for delivery or buy into a JV to develop it. GCU says that they have already had preliminary discussions with several industrial consumers. They have also been in touch with some of the senior mining companies that produce most of the world's Gallium as a by product. cheers! COACH247