Sundance has 775Mt of DSO Iron ore @ 57% and Avima have 580Mt @ 60%. The two projects together have the potential to ship a total of between 50MT and 100Mt of DSO per year . By world standards this is large reserve of DSO. (1300Mt of Direct Shipping Ore)
According to Wiki;
“Ores carrying very high quantities of hematite or magnetite (greater than ~60% iron) are known as "natural ore" or "direct shipping ore", meaning they can be fed directly into iron-making blast furnaces. Most reserves of such ore have now been depleted”
http://en.wikipedia.org/wiki/Iron_ore
To add further credence to the Reuters report, Core's Avima, a mine adjoining Sundance's, announced 4 weeks ago that;
“Core Mining has commenced drafting the mining convention and is in detailed discussions with strategic parties regarding the project development of the Avima world class iron ore deposit which includes rail and port construction. The company looks forward providing further updates”
Core also state on their web page that they expect to start construction this year and shipping by 2013.
Glencore, the world's largest commodities trading company has recently taken a stake in Avima and could be marketing this rare DSO iron ore to its international customers.
Kind regards,
Tongal
SDL Price at posting:
8.9¢ Sentiment: Buy Disclosure: Held
