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Baja Mining's ( latest news release, translated

If you're wondering what the NR out of Baja Mining ( today means, here's your cribsheet:

1) The blahblah about CAs and interested/uninterested buyers is pure sideshow. The real info is at the bottom with this line:
Management has now advanced its review of the anticipated operating costs at the Boleo Project, and currently estimates operating costs at between $50 - $60 per ore tonne

2) Go to the BAJ website, check out the resource. The P+P reserve (the bit that matters) has copper grade of 1.49% for the U/G rock and 0.73% for the open pit rock. There's the Co and Zn (and Mn too I suppose, though that's another circuit) but as the new slated plans for Boleo are about processing the copper only (to save capex cash), this gig revolves around the copper, period.

3) 0.73% Cu is 16.1 lbs per metric tonne. Even at 100% recoveries (which won't happen) and the current $3.50/lb copper market price, that's $56 worth of copper for every tonne of rock you process.

4) 1.49% copper is 32.85 lbs Cu/t. With the same parameters as above, we're at $115/t rock worth of copper.

5) In other words and getting to the point, BAJ has this morning told the world that its open pit reserve is now uneconomic, or if you like 21% of its mineral has suddenly disappeared. Ooopsy!

6) In a normal country, Greenslade will be jailed for fraud. Sadly, Canada is not a normal country.

PS: Oh, one final thing. It's now pretty clear that the guys at Mount Kellett, the people who bought 19.9% of BAJ at prices around a $1 (best guess) average and then went on for NR after NR about their belief in Boleo's world class potential etc etc, know fuck all about mining. The moral here is that just because you have $60m to throw at the market it doesn't make you smart. Next time you see the Mt Kellett names pop up on a deal keep that one in mind, yeah?