shareprice, page-17

NightStalker...

Like everyone else I suspect, I too traded the pants off this over the two days since the announcement.

Clearly the players were all over it, but in my mind this does not exclude the fact FDL may well have something here...in fact, "players" are usually attracted to the underlying rerating potential because it helps with their games. On this very basis alone, the market has enough information in my mind to lift a basket case diamond explorer to a new level.

After all "potential" is what the market is valuing FDL at right now...and that "potential" as I see it is very large.

Whilst I have concerns about the extent of what may actually be in the ground, I do not flippantly discount the value of an independent geological report of this nature...particular for iron ore, which unlike many other mineral types, is much easier to quantify with relatively little exploration.

At the end of the day, if it looks like a duck, smells like a duck and sounds like a duck...and the paddock next door is full of ducks...one does not need interpolate too much to realise they have a duck in their paddock too.

Count the droppings and you have a fair idea how many ducks.

Airborne recon, ground study, rock-chip samples, nearology and finally geological interp is more than enough to count the duck droppings. In this case it is especially so, due mainly to such clearly defined surface expression. FMG have "inferred" areas half the size of FDL's target without a single drill, and based losely on the same process employed by FDL.

FDL's target ares is significant...yet it will only take 20-40 drill holes to convert it to inferred...maybe less.

The only real doubts are continuity and grade, tenor, impurities...and of course, depth. Indeed, they could potentially have a higher rsource tonnage, especially if it turns out they have mineralisation with little surface expression, if for example it plunges under more recent surface material.

However...all of this is a big fat question mark, so "value" is still very much abitrary for now (will be until they drill)...but they do have ducks here, no question, you can see their droppings everywhere!

So...for you to suggest FDL has nothing is suggestive of a complete lack of knowledge of the processes involved in such a study. In fact, FMG conducted a similar study on their recently announced 1b tonne resource, except they only came up with about half this amount!

Drilling doubled it!

Peg an empty paddock and you have nothing...but peg an empty paddock next door to a 1b tonne Fe resource, with surficial evidence of similar mineralisation and rock-chip samples, supporting a rather simplified geological interpretation...and you have a little more than nothing.

In fact you have "potential"...and given your neighour has just released the results of a similar approach next door, a neighbour who just happens to have the clout to actually get your resource (if you have one) to market, then your "potential" has been lifted another notch again.

With a market cap of $85m, FDL's "potential" alone has not been built in...let alone confirmation of the target zone if/when they are added to the mix.

The only question in my mind perhaps is the robustness of the independent report.

Anyway, assuming it is only partly correct, FMG being next door to FMG are not unlike CAZ (with Shovelanna) to BHP...as such, confirmation of FDL's resource should result in a similar offtake arrangement with FMG as we saw with CAZ and BHP.

Sadly for CAZ, they no longer have Shovellana...but this is not the case for FDL.

This is of course all down the track IF they manage to convert an "educated guess" into a reseource.

So...for anyone to say "they have nothing" is simply fodder for dweebs and newbies. Come to think of it, in your own dismissive post you suggest FDL will "settle in the 5-6c range"...this is still some 500% higher than the day before the announcement.

Hardly the result of "nothing"?

Frankly, I think it will settle a lot higher if what we are being told is legit, the result of which I suspect we might see in further announcments near term.

Personally, I am looking at buying in only once the dust settles, as I believe a significant continuation run will develop here...possibly on the back of a proactive announcment regime.

Until then I will just be watching, with the odd intra-day trade for interest.

Cheers!