I have been doing a bit of digging cos there was nothing on the telly!

if CNY can get the RM operation up from the current 4000 t per month of high grade ore to ...say 14,000 t per month (not beyond the bounds of possibility I believe) then we would be producing 168,000 t of high grade ore per annum.

just to put that figure in context, it represents 9% of Brazils TOTAL production of high grade ore (>44%) in 2010.

it represents 1.65% of the worlds TOTAL production of high grade ore - based on IMnI data

thats on the existing (soon to be proven) 860,000 tonne resources...... imagine if we expand that resources 5 or 10 fold and production ramps up accordingly?

imagine producing 8-16% of the globes TOTAL high grade Mn ore..... or 850,000 tonnes to 1.68m tonnes per annum

A rough rule of thumb that I have observed is that producers received about $1.9b in revenue from 10m tonnes of Mn ore (all grades).... thats $188 per tonne

It is also apparent from the IMnI stats that high grade accounts for 1/3 of production but 2/3 of revenue.... say $1.2bn revenue from 3m tonnes..... thats $400 revenue per tonne of high grade on average

When you look at the spot price consensus forecats for Mn ore over the coming 2 years you will see that 48% Mn ore is likely to get between $7.50 = $9.00 dMTU.... so Rio Madeira ore is worth say 8.5 x 52 = $429...... just about right for our premium grade

its easy to see where the $200 per tonne margin is coming from....... Mn mining is going to be a lucrative undertaking for CNY and its shareholders.

The 43-101 if it shows 850,000 tonnes of 52% ore is going to tell the market that CNY has 850,000 x 429 dollars in the ground

168,000 tonnes per year at $1 earnings per share........ if we simultaneously expand the resource even by a factor of 2, we are into a 10 yr mine life and the markets will apply a p/e ratio in the order of 6x......... leading to $6 per share valuations

sweet