Molybdenum

[echarter]

The projects as they are presenting themselves to us know constitute three possible mine/advanced exploration opportunities. What is exciting is the possibility of bulk mining where widths are generous. This allows low dilution, fast, cheap mining techniques which are traditional for sulphides. With high gold prices they look to be profitable.

If enough resource can be found, because of the adjacent milling in one case, we can predicate early mineability. This is because the capital expenditure is low, perhaps pennies on the usual dollar. With a short exploration period that is successful at finding more ore, extraction can begin without huge ounces ahead that would ordinarily be necessary to predicate payback of mine and mill infrastructure. In other words, a mine is 100,000 ounces or 500,000 tons instead of the one million to two million ounces which would be Dome mine's threshold. I think if you predicate a 50% hit rate, that given "one ton" widths (12 foot true widths) it could take as few as 100 holes 400 feet long to drill off a mineable tonnage to indicated status. At 600 TPD, this would target 3 years mining.

The narrow vein situation is harder or longer term to drill off, but the infrastructure is more developed and bulk-sampling mining can take place early in the game as the resource is far better defined. Indicated and measured for a few thousand tons anyway. The larger target resource that is only partially defined, would need hundreds of holes but perhaps staying 3 months ahead of the ore is all you need to do. Having 100,000 tons to mine (1 year) is all one needs with mill built and major mine workings done. Here assuming a 100% hit rate, one hole develops an inferred 2500 tons, but it takes four more holes to delineate. So 200 holes of say 200 feet long to delineate the ore. 400 DDH's would be required in a 50% hit rate environment. So delineation drilling of 100,000 tons at close to 0.50 OPT could take 1.2 million to complete. An acceptable cost.

I believe we could be in line to develop three such situations. One is "hard" in that it is already developed and previously mined. Another is developed and mined but needs milling agreements so we will call that semi-hard. The other was mined some time ago and needs development and some grass roots exploration. Still depending on financing and other factors we could be in a three producer situation within about 18 months.

This would put legs under any stock I would warrant and is a great target for a new issue.

I am very confident of the future of such a mining enterprise in this market.

EC<:-}