lets discuss tenements and company direction, page-15

G'day Fatstocks....

Thank you for the feedback. My interest in IO Exploration Companies began last year and I have had a lot of catching up to do on research. I concluded that if an exploration Company has high grade IO on their tenement, with rail and port access, then they may devolp into minining operations or be take over targets. I don't think there will be enough time in this cycle for Exploration Companies with IO in isolated areas to be able to get their IO to a ship in the absence of rail access. I understand this is what happened in the 1970's as happens will most resource industries. The highest grade and easiest access resources are processed first and in the next cycle you go further and wider so to speak.

It is for these reasons that I have taken an interest in FDL at 1.5cents and from your early comments in December, I placed a large holding in GDA at 1.6cents. Both of these Companies have fared the market storm well and seem to be isolated from the type of investors who regularly dump on bad days.

As you and others have continued researching GDA and FDL, I have been looking at the other side of IO. Marketing and Sales. Lets face it, if you can't sell it, you IO value will decrease overnight. From my research, I do not see a decrease in consumption of IO from emerging Global Economies for the next two years, and infact I expect and increase in consumption in 2010. It is not just China that we must focus on but Japan, Korea have and will continue to buy IO. India I have always considered to catch up to China in the future as they are a Free Democratic Nation of Capitalists, and they speak English.

Once you throw India's hat in the ring, we are not able to process enough IO in the world to meet demand.

The first thing that will happen, is Australia will pour all its earnings through the Federal government into building Super ports around Australia. We will increase our Mining production and for a period will enjoy high prices. As we go forward, we will see the prices comming off, but the volumes will remain high but hopefully we will have reduced our costs to produce.

This is just History repeating itself.

Good luck to all holders

Les