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downsideup

12/18/12 12:16 AM

#127409 RE: es1 #127402

You are completely wrong in every aspect of thinking the metallurgy work the Chinese are focused on doing... is still about looking at the basic assay values that matter when you're doing basic exploration work focused on proving a resource exists.

It's just not about that.

The metallurgy work the Chinese are focused on doing now... is about the chemistry and physics of processing these particular rocks, and about the requirements that result in engineering design of scaling up the extraction processes that work best, and the facilities and other inputs required to support those processes, as they will need to be used to extract the minerals... from the rocks... at a commercial scale.

Having somewhat higher or lower average values in the target minerals in the samples that they're testing now to determine how to design the best possible extraction processes... won't make any real difference, one way or the other, in the things you quite wrongly claim they're focused on.

The value of "the rocks" and terms in "the deal" aren't going to change, one way or the other, based on the results of a couple of assays of rock samples being tested, now... when the focus of that work doesn't relate in any way, directly or not, to determination of a resource.

Where there is a resource... the metallurgy studies will tell you how much of that resource is able to be extracted, how easily, using different methods, at what cost, etc.

They will want to see some variation in samples of different content and grades, to see how the efficiency of extraction processes depends on and varies with the mineral content...

The results of the metallurgy studies do matter a lot... as an element in feasibility... as the proven ability to extract valuable minerals from the rocks is a significant factor (and it is a major driver of costs in development and production, and the profitability of operations) but they don't matter at all in the way you're saying they do...

They're not focused on testing the rocks to see "if there is value" or to see "what the value is".

Period.

They're focused on finding the most efficient processes for extracting the minerals they already know are there, from the rocks, while planning on enabling doing that on a commercial scale...

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Refill

12/18/12 7:00 AM

#127420 RE: es1 #127402

es1, I see your logic as flawed. The scenario as you describe would force Scott into calling them liars. Makeing enemies of your potential partner is not a good way to begin this type of negotiations...IMO "He should have let them tell us what they got and if there was a discrepancy he would know they are not making a fair deal and to watch his back.
It would also allow him to come back at them with his results of their sample"

Scott has preemptively removed the opportunity for that type of disagreement.