Ann: Exporation Recommences at Symons Hill , page-29

PS John,

Your map compilations are great by the way, and obviously widely appreciated.

Geologically I do like those WIN Fraser Range North targets in the image that you posted earlier, from their December Quarterly Report. On that magnetic image they certainly look like sheared intrusive bodies that have got caught up in a high strain zone of the Fraser Range mobile belt.

My only misgiving is that they are in a lower magnetic susceptibility zone and off to one side of the main Nova-Crux gravity ridge, suggesting that they may in fact not be ultramafic intrusive bodies, but possibly anorthositic or even granitic intrusives. But who really knows until the detailed groundwork is done?

More importantly perhaps, WIN do have a huge area of untested Fraser Range ground, which was actually selected on fundamental exploration criteria before the big Nova land-rush, by someone with the geological smarts of Mark Creasy.

Not only that, the company only has 88,000,000 shares on issue but has $7,867,000 million cash in the bank, and at a share price of 24c, has a market cap of just $20,700,000.

What that means is that WIN has an 'enterprise value' (ie. the market's valuation of that huge swag of prospective areas of the Fraser Range province) of just $12,800,000m.

So you rightly identify them as a first class entry into the FRP nickel belt, if that is where one wishes to be.

Matsa by contrast has just one potentially-interesting Fraser Range tenement: the one just west of Nova, and has has already drilled this without success. It has 144,000,000 shares on issue and only $2,580,000 cash left, plus another $2,670,000 in listed shares (BNR and PAN) although I doubt that you could sell too many of those BNR on market at 1.3c after the recent debacle, yet with a 0.18c share price MAT still has a market cap of $25,950,000. That puts an enterprise value of some $20,000,000 on its exploration projects and that apparently sub-economic gold resource, which looks more like a liability to me than an asset at the current gold price.

On the face of it then, one could be forgiven for thinking that either WIN is undervalued or MAT is overvalued, and in the present market I would have to say it is the latter.

Well, actually I'd say they are both overvalued, which is why I remain on the sidelines in the Fraser Range, but that is just my subjective opinion.







(Pay no attention to me though, and don't act on anything I say. I am not a financial adviser and this is not financial advice).