Thanks for posting the Bloomberg article

Note: The link does not launch since the address got truncated. Copy the whole address and paste work.

My comments:

The article is quite reasonable.

Two critical items are the size of the deposit and the annual production. Currently production is assumed to be 100,000 tonnes/yr and people want to get a huge deposit that can last for century by going wide and deep.

In my view, ZEN has enough resource just by considering the current results from the 2 pipe, assuming a depth of up to 300-400m. There is no need to go any deeper, since it would cost a lot more to develop a deeper pit. An initial resource large enough to last say some 20 years would be good enough. Also, there would be no need to search far and wide for more deposits.

In terms of production, it may be a better strategy to scale the production down, at least initially, because you don't want to flood the market with the stuff. 25,000 tonnes/yr would be good enough and would make a lot of money, if the profit margin is healthy enough (you can pick a number from $5-10k/tonnes, judging from the expected price for up-scale graphite).

If there is a good demand from the market then ZEN can always scale the production up.

It may be better to be on the conservative side and set a reasonable expectation rather than setting up great goals that may be difficult to achieve.

Gordon Gekko (Michael Douglas) of Wall Street said "Greed is good", but we don't have to follow his example.

goldhunter