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[mr ashley james] 11/9/2005 22:08

Kumba JV Renewal

RNS Number:0509R
Adastra Minerals Inc
09 September 2005


NEWS RELEASE

Adastra Renews Kipushi Joint Venture with Kumba and Commissions a Technical and
Economic Reassessment



Trading: TSX and AIM:AAA





LONDON, U.K. (September 9, 2005) -- Adastra Minerals Inc. ("Adastra" or "the
Company") today announced that it has renewed its Joint Venture Agreement with
Kumba Base Metals ("Kumba") for the potential redevelopment of the Kipushi zinc/
copper mine (the "Kipushi Project").



The Kipushi mine is located in the south of the Democratic Republic of Congo ("
DRC"), 30 km south-west of Lubumbashi, adjacent to the Zambian border. Under the
terms of the Joint Venture, Kumba, a wholly-owned subsidiary of Kumba Resources
Limited, can earn a 50% shareholding in the Company's interest in the Kipushi
Project.



In addition, a technical and economic reassessment of Kipushi is underway to
determine its potential commercial viability in current market conditions, to
appraise the mine's physical condition, and to identify key areas for detailed
investigation in a subsequent Feasibility Study and associated Environmental and
Social Impact Assessment. In addition to updating and re-evaluating previous
studies, the reassessment will consider a range of possible concentrate products
and evaluate the production of calcine and sulphuric acid.



LQS International has been appointed to co-ordinate the technical aspects of the
reassessment and SRK Consulting has been appointed to conduct an environmental
and social scan. The reassessment is expected be completed in early November.



"Kipushi is a high grade zinc/copper resource that we are eager to bring to
value," said Tim Read, President and CEO of Adastra. "We are delighted that the
joint venture with Kumba has been renewed. The economic reassessment will be a
key step towards concluding detailed commercial arrangements with Kipushi's
owner, La Generale des Carrieres et des Mines ("Gecamines")."



About the Kipushi Project

The Kipushi mine is a world-class deposit, with a measured and indicated
resource of 16.9 million tonnes (measured: 8,932,231 tonnes; indicated:
8,029,127 tonnes) at an average grade of 16.7% zinc (measured: 10.07% zinc;
indicated: 24.21% zinc) and 2.32% copper (measured 2.53% copper; indicated:
2.09% copper), as calculated by Gecamines and verified by Charles Carron Brown
of Techpro Mining and Metallurgy, a "qualified person" as defined by the
Canadian Securities Administrators' NI 43-101. The deposit is open along strike
and down dip. Zinc and copper were produced at the mine from 1925 to 1993, but
production ceased because of a lack of foreign currency and operating supplies.
Adastra has an exclusive option to submit a proposal for the redevelopment of
the Kipushi zinc-copper mine.



About Adastra

Adastra Minerals is an international mining company listed on the Toronto Stock
Exchange and on AIM, in London, under the symbol "AAA". It is currently
developing several mineral assets in Central Africa, including the Kolwezi
copper/cobalt project in the DRC. Adastra's growth strategy emphasises the
creation of shareholder value through the development of world-class resources
in stable or stabilising political environments.





About Kumba

Kumba Resources Limited, one of the largest South African-based mining companies
listed on the Johannesburg Securities Exchange, is a focused metals and mining
company with a diverse commodity portfolio consisting of iron ore, heavy
minerals, coal, base metals and industrial minerals. Included in Kumba's
portfolio of assets is the large low cost Zincor refinery near Springs in South
Africa with a production capacity of some 120ktpa of refined Zinc. Kumba is
committed to progressing the Kipushi project for the mutual benefit of all
parties and, most importantly, the people of the DRC.







Contact us:



London

Tim Read Justine Howarth / Cathy Malins
Chief Executive Officer Parkgreen Communications
T: [phone] T: [phone]
F: [phone] F: [phone]
E: [e-mail] E: [e-mail]



South Africa

Kumba Resources
Doug Taylor
Acting General Manager
Strategy and Business Development
T: [phone]
F: [phone]
E-mail: [e-mail]



North America

Martti Kangas
The Equicom Group
T: [phone] x. 243
[phone] (toll free)
F: [phone]
E: [e-mail]



This News Release contains forward-looking statements within the meaning of the
United States Private Securities Litigation Reform Act of 1995 concerning the
Company's plans for its principal properties in the Democratic Republic of Congo
("DRC"). These forward-looking statements are subject to a variety of risks and
uncertainties which could cause actual events or results to differ materially
from those reflected in the forward-looking statements, including, without
limitation, risks and uncertainties relating to political risks involving the
Company's operations in the DRC and the policies of other nations and
organizations towards companies doing business in such jurisdictions, the
inherent uncertainty of production and cost estimates and the potential for
unexpected costs and expenses, commodity price fluctuations, the inability or
failure to obtain adequate financing on a timely basis and other risks and
uncertainties, including those described in the Company's Annual Report on Form
20-F for the year ended October 31, 2004 and Reports on Form 6-K filed with the
Securities and Exchange Commission.


This information is provided by RNS
The company news service from the London Stock Exchange
END

JVEBIGDCDBGGGUI

[mr ashley james] 11/9/2005 22:07

A golden age for the Congo?
By: Jim Jones 21-AUG-05

JOHANNESBURG (Mineweb.com) -- The Royal Bank of Canada and its investment subsidiary, RBC Capital Markets (RBCCM), form parts of a highly conservative financial group. So when RBCCM reports on what it believes to be a promising new investment environment, the big picture, it is appropriate to pay attention, to pay the sort of attention that can often make winners of early-bird investors.

Earlier this year, RBCCM took an overview of the Democratic Republic of Congo, the former Zaire, a country that suffered decades of civil war and pillage by a series of venal governments, insurgents and foreign carpetbaggers. The country had been left comparatively underdeveloped in the early Sixties when its former colonial ruler, Belgium, ceded independence,

At that stage the DRC was a leading minerals producer, as the RBCCM report pointed out. That was scarcely surprising, given the enormous territory's vast mineral resources. In round figures, RBCCM reckons that the DRC has some 80% of the world's reserves of coltan (columbo-tantalite), an essential feedstock for making the tantalum used in every cellphone and in most other pieces of portable electronic equipment.

The DRC also has massive reserves of diamonds – mostly industrial-quality it should be conceded – that helped fund the civil unrest that plagued the country almost from the moment of independence. It also has an estimated 10% of the world's copper resources.

And all of these are starting to be exploited by a range of mining companies from as far afield as South Africa, Canada and Australia. They are exploring and starting to exploit comparatively well-known mineral zones. And then there are others who are taking an even-longer view and entering what might be described as virgin territory.

But more of this later.

As RBCCM and others report, The world does not depend on the DRC for critical minerals. The DRC might, for example have four-fifths of the known tantalum ore, but enough is available from countries such as Australia and Egypt to keep the likes of Nokia adequately supplied. And other countries as well as synthetic diamond makers can supply the industrial diamonds that industry needs.
Yes, but to qoute RBCCM, the Kasai craton in the south central region of the DRC, forms an extension of the Angolan
diamondiferous craton. And it is starting to be exploited by the likes of SouthernEra Diamonds, Gravity Diamonds, BRC Diamonds, and MIBA (La Société Minière de Bakwanga).


The fact is that Congolese deposits of several minerals are rich, very rich. The cobalt resource is just such a case in point. And, in some cases, those resources are potentially massive and under-explored. Their geology is correct.

Less well known or as completely understood, however, are the vast Kilo-Moto and Twangiza-Namoya gold belts of, respectively, the north-eastern and eastern regions of the country. They were exploited several decades ago, often by relatively simple methods – small miners often scratching the surface or operating shallow mines. The newcomers are more methodical. AngloGold Ashanti and Moto Gold Mines are already establishing properties on the Kilo-Moto gold belt while Canada's Banro appears to have staked out some of the most important areas in the Twangiza-Namoya zone.

To quote RBCCM:

The Congo Craton is Africa's largest under-explored region in terms of Archaean geology, and host to two major gold belts; the Kilo-Moto gold belt and the Twangiza-Namoya gold belt.
• Kilo-Moto: it is reported that 11 Moz has been produced from the Moto and Kilo areas since 1906. In the Moto region there were at least 10 old mines, which were responsible for the bulk of the +3..0 million ounces of gold produced in the Moto region. The two largest mines were:
– The Agbarabo mine, produced 600,000oz of gold at an average grade 39g/t; the Gorumbwa mine, produced 1.2 million ounces at an av. grade of 22g/t.
– Moto Mines (inc JV partners) currently defined a resource of 4.3 million ounces of gold.
• Twangiza-Namoya: The gold belt is 210km long and is located in the prospective Proterozoic and Archean age rocks. Mining activities on this belt date back to the 1900's. Four principal areas:
Twangiza – alluvial gold mining operations carried out during the 1950s; Kamituga – by the 1960s 850,000 ounces were mined from alluvials; Mobale mine produced 804,000 ounces between 1936-1996;
Lugushwa – between 1958-1996, alluvial and primary mining produced 457,000 ounces;
Namoya – alluvial mining between 1993-1947, primary mining 30,000 ounces a year over 5 years (ceased 1961)
– Banro Corp. currently has defined a resource of 8.02 Moz of gold.

But as RBCCM points out, the two major gold belts are likely to contain significantly more gold than the resources that have been proved so far. In other words, we could be looking at significant gold-production zones.

But there is another caveat – politics. The DRC is far more stable under its present government and under the political consensus that is currently emerging. But it is riskier than other, established, gold-producing countries. Crucially, risk has to be balanced by adequate potential reward. Which is why RBCCM prepared its recent country report.

Basing its findings partly on another report by Canada's respected Fraser Institute consultancy, RBCCM makes the points that:

The mineral wealth of the country needs no further justification as the DRC offers some of the most prospective mineralization across a wide variety of minerals in Africa.
• In our opinion, the mineral potential goes some way to offset the country risk, a view supported by the Fraser Institute's recent findings.
• There has been much progress in restoring socio-political stability in the DRC, with the UN, Paris Club, World Bank, IMF, USAID and South Africa have committed substantial financial and peace keeping
resources.
• However, until there are free elections in the DRC, political uncertainty remains, but the current power-sharing transitional government has gone a long way to fostering peace in most parts of the country.
• Much of the DRC remains unexplored by modern geological techniques presenting opportunities for major resource discoveries.
• Opportunities exist to re-evaluate development projects and mines neglected through mismanagement and disrupted by civil war.

The DRC shows all the signs of emerging from the decades of strife and pillage that ruined its economy, infrastructure and social structures. In this, it is not unlike a number of other African nation states, but it differs from many in the sheer magnitude of its mineral potential.

The prospective rewards could well more than compensate for non-economic risks that have been and that are steadily diminishing.

[exotic] 02/9/2005 23:18

Ash,

Would appreciate your view in RVD River Diamonds. Post over there if it's positive, here if negative :)

Thanks.

[mr ashley james] 02/9/2005 22:33

Thanking Jonwig for link from other AAA Thread.



Adastra Gets Jungle Fever As Congo Plans Flower

Business Day (Johannesburg)

September 1, 2005
Posted to the web September 1, 2005

Charlotte Mathews
Johannesburg

COPPER and cobalt company Adastra Minerals' $300m Kolwezi cobalt and copper tailings deposit in Democratic Republic of Congo is attracting a high level of interest from South African financiers.

Adastra chief operating officer Bernard Pryor says the project, which will represent one of the biggest investments in mining in Africa outside SA, will obtain most of its equipment and finance from SA.


The attractions of the project, from the banks' and credit guarantee agencies' point of view, is that it satisfies their lending risk profiles.

Although copper and cobalt prices have strengthened dramatically since Adastra first won the international tender for Kolwezi about seven years ago, the mining project is robust even at a long-term copper price of about $0,90/lb.

Currently, copper is trading at about $1,70/lb.

Kolwezi is expected to produce 30000 tons of copper and 5500 tons of cobalt a year over its 53-year lifespan, from two dams containing 112,8-million tons of oxide tailings.

The project will help rehabilitate a seriously degraded area, including a watercourse.

At full production it will employ about 800 people from a nearby town, which has an unemployment rate of about 90%.

Last week the tailing project's environmental adjustment plan was approved by the Congo's mines ministry.

Pryor says one of the attractions of Kolwezi compared with South African new mining projects is that both its costs and its revenues are dollar-based.

Management of Adastra, a junior mining group, has been knocking on banks' doors for years and has been careful to "underpromise and overdeliver", Pryor says. Obviously, hitches arise in a project of this nature but Adastra has been pragmatic in its predictions, he says.

Adastra's chief operating officer says he is positive about the operating environment in the Congo. He says he believes that the country's new government is not yet receiving the international recognition it deserves for its achievements, and moves towards stability.

Since Joseph Kabila became president in mid-2003, previously warring factions have united into a fledgling democracy.

War continues in the northeast and this appears to be an intractable problem, but the remainder of the country is peaceful with lower crime than SA.

The Congolese government has brought down inflation from 300%-400% to single digits and put in place a mining code that establishes a transparent and level playing field for all investors.

The code lays down procedures for applying for licences, royalties and taxes. Previously, mining investments were negotiated on a case-by-case basis in the Congo.

Around Kolwezi, Adastra's project enjoys good rail, power and water infrastructure.

To date, Adastra has secured equity participation in the Kolwezi project from the International Finance Corporation, an arm of the World Bank, which has taken a 7,5% stake, and from SA's Industrial Development Corporation, which has taken 10%.

Both have proven helpful and influential partners and it will be surprising if they do not help with debt finance, Pryor says.

The next steps, now Congolese environmental approvals have been secured, will be to convert the environmental report into an internationally recognised format and to complete a definitive feasibility study.

Adastra is also negotiating to secure offtake contracts and financing through debt and equity.

It is expected that financing will come from a range of sources, including an issue of new shares, but Pryor says Adastra will ensure its current shareholders are diluted as little as possible.

With strong support from European and North American institutions -- Adastra is listed on London's Aim and the Toronto Stock Exchange -- Pryor says there are no plans at present to apply for a listing on the JSE.

[mr ashley james] 01/9/2005 21:17

Rambutan,

Spoke to Bernie Pryor recently, pretty tight lipped when I asked him about Internal Rate Of Return on the Kolwezi Project eventually I got a "Robust comment.

To be fair I am sure the IRR does exceed my 30.00% Cutoff and is "Robust".

I note Cash costs are US$2.15 Lb Cobalt, and US$0.37 Lb Copper so I guess I am going to have to do my own numbers based on planed US$316,000,000 Project Finance I guess I am going to assume something like US$250,000,000 Debt and US$66,000,000 Equity at a guess.

I reckon they will be able to pay back US$250,000,000 within 5 Years out of Revenue assuming US$50,000,000 CAPEX Repayment and Interest in the US$17,500,000 to US$25,000,000 Range assuming 5 year payback.

Production 42,000 Mt Cu pa and 7,700 Mt Co pa

I come out at Co US$16.60 Lb at US$281,790,130 plus Cu at US$1.75 Lb at US$162,037,038 ie combined Revenue of US$443,827,168 pa at current Commodity prices.

Cash costs add up to producing 42,000 Mt (92,592,593 Lbs) of Cu at US$0.37 Lb=US$34,259,260 per annum and 7,700 Mt (16,975,309 Lbs) of Co at US$2.15 lb US$36,496,915 per annum.

So Annual Total Combined Cash Costs come to US$70,756,175 pa

It looks like at full production and the current level of Commodity Prices you could pay back the Debt and Interest out of combined Revenue of US$443,827,168 within 12 months because Revenue less Cash Costs leaves US$373,070,993 and required total CAPEX is only US$316,000,000 so reckon IRR will be around 100% IMHO

Will Run the numbers at 20% Discount current commodity prices and discount future cash flows by 10% and see the results!

All IMHO, NAG, DYOR etc, etc

Cheers

Ash:)

[mr ashley james] 25/8/2005 10:34

DRC Subsidiary to join EITI

RNS Number:4665Q
Adastra Minerals Inc
25 August 2005


Adastra DRC Subsidiary to Join
Extractive Industries Transparency Initiative

Trading: TSX and AIM: AAA

LONDON, U.K. (August 25, 2005) -- Adastra Minerals Inc. ("Adastra") announces
that the Board of Directors of its subsidiary Kingamyambo Musonoi Tailings Sarl
("KMT"), which owns 100% of the Kolwezi Cobalt and Copper Tailings Deposit (the
"Kolwezi Project") in the Democratic Republic of Congo ("DRC"), has unanimously
resolved to become a signatory of the Extractive Industries Transparency
Initiative ("EITI").

The EITI is a coalition of governments, companies, civil society groups,
investors and international organisations. Its objective is improved governance
in resource rich countries through the full publication and verification of all
payments to governments by companies in the oil, gas and mining sectors and a
corresponding publication of all receipts from the natural resource sectors by
governments.

Resource rich countries implementing the EITI can benefit from an improved
investment climate by providing a clear signal to investors and the
international financial institutions that the government is committed to
strengthening transparency and accountability over natural resource revenues. In
turn this will permit a greater scrutiny by civil society of governments'
stewardship of financial resources.

The Government of the DRC has endorsed the EITI and is currently considering how
best to implement the intiative. KMT will be the first mining company in the
DRC to join the EITI.

"We believe that a high level of transparency is crucial for any mining company
operating in a developing country. We are therefore very committed to the
principles laid out by the EITI, which will help to engender trust and dialogue
between all stakeholders in mining revenues," said Tim Read, President and CEO
of Adastra. "The Government of the DRC has committed itself to creating an
environment conducive to private-sector led growth, as evidenced by the
forthcoming democratic elections, the promulgation of the new mining code, and
the establishment of macro-economic stability leading to the renewal of economic
growth. We believe the implementation of the EITI will provide further evidence
to the international business community that the DRC is open for business."

About the Kolwezi Project

Adastra's Kolwezi Project consists of two dams containing 112.8 million tonnes
of oxide tailings, grading 1.49% copper and 0.32% cobalt, as determined by Dr.
Isobel Clark of Geostokos Limited, a "qualified person" as defined by the
Canadian Securities Administrators' NI 43-101. This resource has the potential
to host one of the world's largest and lowest cost cobalt producers. Such a
project would generate significant tax and foreign exchange earnings, as well as
providing local employment and contributing to the revival of the DRC's copper
belt infrastructure.

About KMT

KMT is the DRC registered operating company for the Kolwezi Project. It is
currently owned 82.5% Adastra, 5% by the Government of the DRC and 12.5% by La
Generale des Carrieres et des Mines ("Gecamines"), the government owned mining
company. All three shareholders are represented on the KMT Board. The
International Finance Corporation (a part of the World Bank Group) and the
Industrial Development Corporation of South Africa have confirmed their
intentions to exercise options to acquire 7.5% and 10.0% of KMT, respectively,
from Adastra, whose shareholding would thereby be reduced to 65%. Both new
investors strongly endorse the decision to become signatories of the EITI.

About Adastra

Adastra is an international mining company listed on the Toronto Stock Exchange
and on AIM, in London, under the symbol "AAA". It is currently developing
several mineral assets in Central Africa, including the Kolwezi Project and the
possible rehabilitation of the Kipushi zinc mine in the DRC. Adastra's growth
strategy emphasizes the creation of shareholder value through the development of
world-class resources in stable or stabilizing political environments.

For further information on the Extractive Industries Transparency Initiative,
please review:

Contact us:

London
Tim Read Justine Howarth / Cathy Malins
Chief Executive Officer Parkgreen Communications
T: [phone] T: [phone]
F: [phone] F: [phone]
E: [e-mail] E: [e-mail]

North America
Martti Kangas
The Equicom Group
T: [phone] x. 243
[phone] (toll free)
F: [phone]
E: [e-mail]

This News Release contains forward-looking statements within the meaning of the
United States Private Securities Litigation Reform Act of 1995 concerning the
Company's plans for its principal properties in the Democratic Republic of Congo
("DRC"). These forward-looking statements are subject to a variety of risks and
uncertainties which could cause actual events or results to differ materially
from those reflected in the forward-looking statements, including, without
limitation, risks and uncertainties relating to political risks involving the
Company's operations in the DRC and the policies of other nations and
organizations towards companies doing business in such jurisdictions, the
inherent uncertainty of production and cost estimates and the potential for
unexpected costs and expenses, commodity price fluctuations, the inability or
failure to obtain adequate financing on a timely basis and other risks and
uncertainties, including those described in the Company's Annual Report on Form
20-F for the year ended October 31, 2004 and Reports on Form 6-K filed with the
Securities and Exchange Commission.


This information is provided by RNS
The company news service from the London Stock Exchange
END

MSCZGGZRRDLGKZM

[mr ashley james] 17/8/2005 09:00

Rambutan,

Still researching into how LSE:AAA intend to use flotation to treat sulphide ore previously treated tailings to create a concentrate on the Kolwezi Tailings, ie how the planned treatment plant is meant to operate, so have still not taken a position yet.

Will update you on progress.

Cheers

Ash:)

[mr ashley james] 14/8/2005 02:48

Rambutan,

Did Well on Southern Era Resources Limited then TSE:SUF in 2000 to 2002, mainly as a result of Messina Limited, ie the Messina Platinum Mine, then JSE:MES no 1 winner on JSE in 2000, but not entirely convinced on how the ENDIAMA, Lev Leviev and SRE minority 26% pans out or Chris Jennings etc ability to play or anybody for that matter's ability to play the De Beers, CSO, Alarosa Cartel.

Diamonds are something I am beginning to look at in detail, having said which I am not entirely convinced seeing Synthetic Diamonds selling by the bucketload up to 3 Carats in Malaysia in 2000/2001 or the mark up of 50 times from original stones uncut to finished gems is entirely likely to stay in the same Oligopoly Status enjoyed for roughly 100 years plus.

So commercial more competitive Diamonds I think a reality, afterall many other gemstones now competing on the Global Stage?

As to SRE, not sure to be honest, just not sure, whilst undoubtedly Angola is one of the best places to find quality gems, can Chris Jennings deliver?

Diamonds hmm 36,000 Known Kimberlites 60 produce Commercial Diamond Yields but are they really that rare when people produce large quantities on a commercial pipe discovery refer Winspear or with the synthetic Diamond Market encroachments on Margins in the growth Asian markets?

Logically I can see Diamonds coming down to 40% of current prices over the next five years, even then healthy margins but is it the right sector to play, just not sure.

Oddly enough I think Tanzanite 1000 times rarer than Diamonds might be a better place to play the Monopoly Game refer LSE:TNZ

All IMHO, NAG, DYOR etc, etc

Cheers

Ash:)

[rambutan2] 14/8/2005 02:35

am always glad for your company and opinions ash.

my other drc play is sre/sdm - they got some prime land although not a very successfull history as yet, hence mkt cap. however, perhaps things are finally turning for them with recent angola announcement. they certainly offer plenty of bangs for the bucks. any views?

[mr ashley james] 14/8/2005 02:16

Rambutan,

Somebody who I am interested to see whether invests in RDC, may well I guess not have read the 1998 Bechtel Report on RDC Natural Resources, which I saw said there are well in excess of US$160 Billion worth of Natural Resources in the Democratic Republic Of Congo formerly known as Zaire.

So with Natural Resources as the key issue this Century, and the richest Deposits on Earth left In Democratic Republic Of The Congo?

Where else? Afterall I see DRC as the next USSR/FSU Natural Resources investment Opportunity.

Watching CHEVRON TEXACO, AGIP, ELF TOTAL scooping billions of Dollars out of Cabinda every year I doubt most people are right, and as ever reality is a place somewhere else for most of humanity living in Cloud Cookoo Land.

They said I was mad going into Russia/FSU, now no doubt they say I am barking mad investing in RDC, so it goes.

I very much doubt the Rothschilds miss too many major investment opportunities even if I think they are utterly wrong on Northern Dynasty Minerals Limited TSE:NDM

All IMHO, NAG, DYOR etc, etc

Cheers

Ash:)

[rambutan2] 14/8/2005 01:50

re adastra's stake in kolwezi...

[rambutan2] 14/8/2005 00:29

who's roland then ash?

[mr ashley james] 13/8/2005 21:54

Roland,

I am going to need to do some complex sums on valuing their resources and discounting by US$316,000,000 Project Finance at no Doubt Standard Bank Levels of Interest and CAPEX Repayment, ie up to 550 Base Points above LIBOR I guess, I might be able to come down to 250 Base Points, but somewhere around 4.50% plus 2.50% to 5.50% has got to be realistic for RDC ie 7.00% to 10.00% logical average 8.50% pa best case.

The next question is should I work on 10 Years I can not possibly see 38 Year Loans to Congo, so can I stretch it to 15 years?

Work to do next week, think this is worth the effort personally the scale for number crunching as ever:-

There is a report issued by Mining Business Digest in 2000, with an article actually listing the values paid for mining deals worldwide in The Mining Journal 15th December 2000, which sumarises ore reserve acquisition costs by North American companies during the 1990's. A Decade of Deals analysed 429 transactions (including 314 gold, 45 copper and 34 gold-copper deals), the numbers make interesting reading:-

END-1999 GOLD PROPERTY ACQUISITION COSTS (US$/OZ)
------------------------------------------PROPERTY TYPE---------------------
--------------------------Exploration-Development-Production-Corporate
Normal Expected Lower Limit--US$ 3------US$ 20------US$ 45------US$ 70
Expected Average-------------US$ 7------US$ 33------US$ 60------US$ 80
Normal Upper Limit-----------US$10------US$ 40------US$ 75------US$100

Lower-% of price*------------1.0%--------6.9%-------15.6%-------24.2%
Average-% of price-----------2.4%-------11.4%-------20.8%-------27.7%
Upper-% of price-------------3.5%-------13.8%-------26.0%-------34.6%

Note Upper and lower limits are for an "average" acquisition, and are often exceeded for various reasons. Source:Mining Business Digest. *End-1999 price of US$289/oz.
This is the equivalent table for Copper:-

END-1999 COPPER PROPERTY ACQUISITION COSTS (US$/LB)
--------------------------------------PROPERTY TYPE----------------
----------------------------Exploration---Development---Production
Normal Expected Lower Limit--US$0.005------US$0.015------US$0.045
Expected Average-------------US$0.010------US$0.020------US$0.060
Normal Upper Limit-----------US$0.020------US$0.030------US$0.085

Lower-% of price*------------0.6%-----------1.8%----------5.4%
Average-% of price-----------1.2%-----------2.4%----------7.2%
Upper-% of price-------------2.4%-----------3.6%---------10.2%

Note Upper and lower limits are for an "average" acquisition, and are often exceeded for various reasons. Source:Mining Business Digest. *End-1999 price of US$0.837/LB.


All IMHO, NAG, DYOR etc, etc

Cheers

Ash:)

[mr ashley james] 13/8/2005 18:08

Roland,

Placing 15th January 2004 with M & G Investment Managers Limited ie Prudental Assurance Co. Plc was at C$1.60 Raising C$5,600,000 ie 3,500,000 units at C$1.60 roughly 74.00p




TSE:AAA 52 Week Range: C$0.95 to C$2.40
LSE:AAA 52 Week Range: 45.62p to 100.00p

Is Democratic Republic of Congo in fact investable in I ask?

All IMHO, NAG, DYOR etc, etc

Cheers

Ash:)

[mr ashley james] 13/8/2005 17:59

Roland,

I come to market capitalisation at say C$1.60 or 74.00p

SHARES IN ISSUE

70,735,925 shares in issue at 74.00p £52,344,585 or C$113,177,480

FULLY DILUTED

6,156,000 options outstanding
1,679,656 warrant options outstanding

Combined Total 78,571,581 fully diluted ie market capitalisation £58,142,970 or C$125,714,530 on a fully diluted basis

It appears that this market capitalisation of C$113,177,480 included cash of C$11,321,857 Per 30th April 2005 and six months cash burn was C$3,791,989 31/10/2004 to 30/04/2005 I quote:-

"As at April 30, 2005, the Company had cash and cash equivalents of $11,321,857,compared to $16,264,314 at October 31, 2004, and had working capital of $10,312,823 compared to $15,113,846 at October 31, 2004."

So it strikes me true valuation of their participations in these projects is not far above C$100m per 30/04/2005 I come to C$101,855,623 Net Cash.

Seems pretty cheap to me for the upside potential?

All IMHO, NAG, DYOR etc, etc

Cheers

Ash:)

[mr ashley james] 13/8/2005 17:42

Roland,

Reviewing this refer:-


Interim Results

RNS Number:5110N
Adastra Minerals Inc
14 June 2005



14th June 2005



ADASTRA MINERALS INC.



Interim Results ended April 30, 2005 and 2004

(Unaudited - Prepared by Management)



MANAGEMENT'S DISCUSSION AND ANALYSIS



Results of Operations



The Company incurred a net loss for the three months ended April 30, 2005, of
$807,283, or $0.01 per share, compared to a net loss of $2,465,791, or $0.04 per
share, for the three months ended April 30, 2004.



The Company incurred a net loss for the six months ended April 30, 2005, of
$1,549,100, or $0.02 per share, compared to a net loss of $3,179,672, or $0.05
per share, for the six months ended April 30, 2004.



The results for the three and six months ended April 30, 2005, reflect the
following factors:



* Administration costs for the three and six months ended April 30, 2005
were lower overall than in the three and six months ended April 30, 2004. For
the three months ended April 30, 2005, administration costs decreased to
$894,322, compared with $2,321,152 for the three months ended April 30, 2004.
For the six months ended April 30, 2005, administration costs decreased to
$1,796,215 compared with $3,188,980 for the six months ended April 30, 2004.
The decreases were principally due to reductions in costs for stock-based
compensation and for salaries and wages.



* The lower professional fees during the three months ended April 30,
2005, compared to the corresponding three month period of 2004, were mainly due
to the fees associated with filing the Company's Annual Report on Form 20-F
being incurred during the first quarter of 2005, whereas last year this form was
filed in the second quarter. Over the six month period as a whole, professional
fees were very similar to those for the six month period ended April 30, 2004.



* During the three months ended April 30, 2005, investor relation
expenditures reduced to $128,489 from $179,532. Similarly, for the six months
ended April 30, 2005, investor relations expenditure reduced to $206,624 from
$252,748. This was primarily due to being able to bring forward the date of the
AGM to coincide with the week when one of the Company's major regular investor
relations events was taking place in Toronto, and to various reductions in other
costs associated with the AGM.



* The increase in regulatory authorities filing fees compared to the six
months ended April 30, 2004, was mainly the consequence of higher Ontario
Securities Commission and TSX fees, reflecting the Company's higher market
capitalization. Fees in the three months ended April 30, 2005, were lower than
in the corresponding period of the prior year when there were fees relating to
revisions to the Company's Stock Option Plan and also to share capital issuance.



* The decreases in stock-based compensation for the three and six month
periods ended April 30, 2005, compared with the corresponding periods of 2004
were due to the lower number of options granted during the relevant periods
(30,000 options in the three and six months ended April 30, 2005, compared with
3,459,846 options granted in the three months, and with 4,109,846 in the six
months, ended April 30, 2004) and to the timings of the vestings of these
options.



* Salaries and wages costs have decreased mainly because a higher
proportion of salary costs has been capitalized to mineral properties and
mineral property evaluation costs. This reflects employees spending more time
on the mining projects than in the corresponding quarters of the previous year.



* Higher interest rates obtained on cash balances, and the timing of the
private placement of equity in January 2004, resulted in higher interest income
during the six months ended April 30, 2005 than in the corresponding six month
period of 2004. Average cash balances throughout the three months ended April
30, 2005, were lower than in the corresponding period of 2004, and resulted in a
decrease in interest income.



* The Company holds some of its cash balances in Canadian dollars and
U.K. Pounds in anticipation of expenditures to be incurred in these currencies.
During the six months ended April 30, 2005, the US dollar weakened against both
these currencies and the Company recorded a foreign exchange gain of $37,860.
For the three months ended April 30, 2005, the Company has reported a foreign
exchange loss of $12,044, due to the US Dollar strengthening slightly against
these currencies during the three month period.





Liquidity and Capital Resources



As at April 30, 2005, the Company had cash and cash equivalents of $11,321,857,
compared to $16,264,314 at October 31, 2004, and had working capital of
$10,312,823 compared to $15,113,846 at October 31, 2004.



The decreases in cash and cash equivalents, and in working capital, as at April
30, 2005, when compared with the corresponding figures as at October 31, 2004,
mainly resulted from expenditures on mineral properties during the six months
ended April 30, 2005, and from the previously discussed loss on operations
excluding the non-cash stock-based compensation expense.



Issued share capital remained unchanged during the six months ended April 30,
2005, with 70,735,925 common shares outstanding throughout. During the six
months ended April 30, 2005, the Company granted 30,000 options to purchase
common shares, which increased the total to 6,156,000 options outstanding as at
April 30, 2005. Outstanding warrants to purchase common shares remained
unchanged throughout the six month period at 1,679,656.



The Company believes it has sufficient cash and cash equivalents on hand to fund
the Company's short term development activity. The Company will need to raise
additional financing to achieve its long term development plans. The
recoverability of amounts shown for mineral properties and mineral property
evaluation costs, are dependent on the ability of the Company to obtain
necessary financing and on other Exploration and Development and Financing Risk
Factors discussed in the Company's 2004 Annual Report.



During the six months ended April 30, 2005, there have been no material changes
in the contractual obligations and critical accounting estimates as compared to
those disclosed in the Company's 2004 Annual Report.



Mineral Property Projects



As at April 30, 2005, amounts capitalized in respect of mineral properties
increased to $16,142,560 from $12,129,625 at October 31, 2004, reflecting
$14,974,864 in costs incurred on the Company's Kolwezi Project and $1,167,695 in
costs on the Angola Project.



Capitalized mineral property evaluation costs increased to $4,428,009 from
$4,397,126 at October 31, 2004, reflecting costs incurred on the Company's
Kipushi Project.





Kolwezi Project, DRC



During the six months ended April 30, 2005, the Company primarily concentrated
on progressing its Kolwezi Project. The first phase of the Definitive
Feasibility Study ("DFS") - a scoping study analyzing different production
levels - was completed. It was concluded that the initial design capacity of
the plant should be to produce 5,500 tonnes of cobalt and 30,000 tonnes of
copper annually, and work is now underway to complete the DFS on that basis.
Work continued on the second stage of the Environmental and Social Impact
Assessment ("ESIA"), and, in May, an Environmental Adjustment Plan was submitted
to the Direction chargee de la Protection de l'Environnement Minier in the
Democratic Republic of Congo. Work also continued throughout the six months on
negotiating long term sales agreements and marketing arrangements for the cobalt
to be produced, and on preparations for project financing.



In late November 2004, the Industrial Development Corporation of South Africa
Limited ("IDC") informed the Company that, subject to certain conditions,
including receiving exchange control permissions from the South African Reserve
Bank, it would be exercising in full its option to acquire 10% of the Project.
On May 16, 2005, the Company announced that the World Bank Group's Board of
Executive Directors had approved a proposed investment by its private sector
arm, and as a result the International Finance Corporation ("IFC") would also be
exercising its option and would acquire a 7.5% equity interest in the Project.
The IFC, as is also the case with the IDC, will acquire its equity interest at a
price based on the allowable expenditures on the Project up to the date of
exercising its option, and will pre-fund its proportion (as a financially
contributing shareholder) of the estimated costs of progressing the Project to a
financed go-ahead decision. On completion of the IDC and IFC option exercises,
the Company's wholly owned subsidiary Congo Mineral Developments Limited,
expects to receive approximately US$12 million in cash.



During the six month period ended April 30, 2005, the Company appointed Sullivan
& Cromwell to advise on the legal aspects of the project financing.



Kipushi Project, DRC



In financial year 2003, the Company and Gecamines agreed that priority should be
given to finalizing the Kolwezi Contract of Association ("CoA"). Following the
execution of the Kolwezi "CoA" in March 2004, negotiations on the proposed
revisions to the Gecamines Agreement were planned to recommence. Meetings were,
however, postponed until after the end of financial year 2004, pending
Gecamines' detailed review of, and response to, the proposals previously
submitted by the Company.



Gecamines' response was received during the quarter ended January 31, 2005, and
negotiations, as to the appropriate way to take the Project forward, continued
throughout the quarter ended April 30, 2005. It is now planned to carry out a
Scoping Study before finalizing the revisions to the Gecamines Agreement. Once
agreement on the revisions has been reached, and necessary GDRC approvals have
been obtained, the Company anticipates that the feasibility study will commence.
Kumba Base Metals, who in accordance with the Zincor Joint Venture Agreement
("ZJVA") could earn a 50% shareholding in the Company's interest in the Kipushi
Project, were fully involved in the negotiations with Gecamines until the ZJVA
expired on March 31, 2005, and continue to be kept fully informed.



Angola Project



During the year ended October 31, 2004, the Company found it impossible to
progress matters further with Endiama in relation to its rights with regard to
two mineral properties in Angola. In September 2004, it became clear that
Endiama had repudiated its contractual obligations. Consequently, the Company
announced that it would be seeking legal redress. Filing of the suit was,
however, temporarily postponed pending the outcome of representations at senior
government levels. No response was forthcoming; and accordingly on May 18,
2005, the Company filed a legal suit against Endiama in the United States of
America.





Related Party Transactions



During the six months ended April 30, 2005, the Company paid or accrued an
aggregate of $85,952 (2004 - $101,980) for legal services to a law firm in which
a director of the Company is a partner. In addition, the Company has paid or
accrued $1,000 (2004 - $-nil) for consulting services to a non-executive
director, and $7,860 (2004 - $607) for consulting services to a company in which
a director has an interest.



Risk Factors



The risk factors affecting the Company are substantially unchanged from those
disclosed in the annual Management's Discussion & Analysis contained in the
Company's 2004 Annual Report.




Summary of quarterly results



A summary of quarterly results for each of the eight most recently completed
quarters is as follows:


2005 2004 2003
Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3


Interest income $ $ $ $ $ $ $ $
99,126 110,172 101,794 99,765 111,048 51,962 13,821 3,007


Loss for period $ $ $ $ $ $ $ $
807,283 741,817 429,328 601,173 2,465,791 713,881 2,112,281 407,712


Basic and diluted $ $ $ $ $ $ $ $
loss per share 0.01 0.01 0.01 0.01 0.04 0.01 0.05 0.01





The main factors underlying the variations in these quarterly results relate to
the timing of the granting of options, exchange rate fluctuations (particularly
in the value of the U.S. dollar against the Canadian dollar and U.K. pound), and
the incurring of mineral property evaluation costs. The Company made relatively
large grants of options in the second quarter of fiscal 2004, and in the fourth
quarter of 2003 modified its stock option plan to permit future "cashless"
exercises. As a result, the Company recorded relatively higher administration
costs and losses in those quarters.



Forward Looking Statements



This discussion contains forward-looking statements within the meaning of the
United States Private Securities Litigation Reform Act of 1995 concerning the
Company's plans for its Kolwezi Project, the Kipushi Project and the Angolan
diamond Project and the resource size and economic potential of those projects.
These forward-looking statements are subject to a variety of risks and
uncertainties which could cause actual events or results to differ materially
from those reflected in the forward-looking statements, including without
limitation, risks and uncertainties relating to political risks involving the
Company's operations and the policies of other nations and organizations towards
companies doing business in such jurisdictions, the inherent uncertainty of
production and cost estimates and the potential for unexpected costs and
expenses, commodity price fluctuations, the inability or failure to obtain
adequate financing on a timely basis and other risks and uncertainties including
those described in the Company's Annual Report on Form 20-F for the year ended
October 31, 2004 and Reports on Form 6-K filed with the Securities and Exchange
Commission.





Contact us:

London

Tim Read Justine Howarth / Annabel Leather
Chief Executive Officer Parkgreen Communications

T: [phone] T: [phone]

F: [phone] F: [phone]

E: [e-mail] E: [e-mail]



North America
Martti Kangas
The Equicom Group
T: [phone] x. 243
[phone] (toll free)
F: [phone]
E: [e-mail]



The discussion and analysis should be read in conjunction with the Consolidated
Financial Statements of Adastra Minerals Inc. (the "Company") for the three and
six month periods ended April 30, 2005 and 2004, and related notes (the "
Consolidated Financial Statements"). The following discussion and analysis
highlights significant changes since the discussion and analysis in the 2004
Annual Report, which should also be referred to for additional information. The
discussion is based on events that have occurred up to May 31, 2005. Except as
otherwise noted, all dollar amounts contained in this discussion and analysis
and the Consolidated Financial Statements are stated in U.S. dollars.
Additional information relating to the Company, including the Company's Annual
Information Form ("AIF"), is available on SEDAR at www.sedar.com.

[mr ashley james] 13/8/2005 17:07

Roland,

Tell me your thoughts on this one, high political risk location (refer Anvil Mining NL ASX:AVL) but quite frankly these grades are management proof IMO

"The resource estimate for the Kolwezi Tailings, calculated by Dr. Isobel Clark of Geostokos Limited, is 112.8 million tonnes grading 0.32% cobalt and 1.49% copper, with 97% in the measured category (JORC Reporting Code)."

IMHO Kolwezi contains 360,960 Metric Tonnes or 795,767,196 Lbs of Cobalt at 0.32% grade and 1,680,720 Metric Tonnes or 3,705,291,005 Lbs of Copper at 1.49% grade sitting on the surface, no mining necessary.

Put into perspective that is at US$16.60 Lb Co and US$1.72 lB Cu by my calculations comes to following in situ Metal Value:-

Cobalt 795,767,196 Lbs Co x US$16.60 Lb=US$13,209,735,450
Copper 3,705,291,005 Lbs Cu x US$ 1.72 Lb=US$ 6,373,100,529

Combined Total US$19,582,835,979 100%

It seems Adastra Minerals Inc LSE/TSE:AAA own 82.50% ie US$16,155,839,682

That is one enormous amount of a couple of metals the world needs a lot of!

Recoveries are high projected 76% Cobalt and 93% Copper ie I come to recoverable metals over a 38 year project life of 604,783,069 Lb Co and 3,445,920,635 Lb Cu.

Then imagine the profits at cash costs of US$2.15 Lb Co and US$0.37 Lb Cu producing 42,000 Mt (92,592,593 Lbs) of Cu per annum and 7,700 Mt (16,975,309 Lbs) of Co per annum.

At Current US$1.72 Lb Cu and US$16.60 Lb Co which is clearly not realistic as, if and when this supply would come on the market the profits would be enormous logically at any Copper or Cobalt Price likely.

Project Finance at US$316,000,000 Depreciated over a 38 to 50 year Project Life are hardly enormous either potentially only US$8,315,790 per annum over 38 years or US$31,600,000 per annum if Depreciated straight line ten years ie front ended.

All IMHO, NAG, DYOR etc, etc

Cheers

Ash:)

[netcurtains] 13/1/2001 13:02

Well it seems good to me.. Interesting to see if IMG goes up loads. If it does it will prove that the market likes it.

[brazilnut] 13/1/2001 10:17

Jolly nice.

[netcurtains] 13/1/2001 10:07

Can't be long before AAA games is floated now!!!hee hee for www.pvr-net.com

Today SEGA of japan announced its plan to release a
Dreamcast card for the PC enabling owners of home
computers to play Dreamcast games on their PCs. The
card is to be released this fall at a price of 10 000
yen (~ £57). Two different versions of the card will be
available, one for desktop computers and one for
portable ones.
Trying to bring console compability to the PC world
with an add-on card is by no means a new idea, SEGA
themselves made a try a few years back with a card
(sorry can't remember the name!) that had a customized
version of Virtua Fighter and Saturn compabitle
controller ports. Creative Labs released the 3D0
Blaster but due to legal issues with the licensing for
the games, it never really reached the market. Wether
the upcoming Dreamcast card will join the faith of the
formentioned two, remains to be seen but its a brave
move of SEGA regardless.