target potential of 100mil tonnes of fe, page-25

Miningio,

regarding,
"The other thing that worries me is the inconsistent and complex nature of the Railway deposit. It is very thick in some parts, then thin and then breaks off and starts again at a different depth. So it will take closely spaced drills to convince me beyond doubt that there is a large ore body there."

Hopefully I can help clarify this for you and anyone else with the same concerns. (I too had the same concerns initially)

I'll endeavour to explain it in the most simplistic way I can.

Take a piece of A4 paper and put it on a table. Portrait or landscape it doesn't really matter.

Now place a ruler (let's call this ruler packsaddle) at the bottom of the piece of paper and tape it there (South)

Hold the top of the page with one hand and using the other hand push the ruler in a northerly direction until the paper starts to raise up off the table until it folds in on itself creating bulges and gullies much like the swell of the ocean.

Now the consistency in an east/west direction is continuous for the length of the ruler.
However the complexity appears in a north/south direction as it lack uniformity.

Now knowing this, there is nothing complex about Railway at all. The ruler (packsaddle) is the structual control required for the supergene enrichment process to take place.

If we now turn the page anticlockwise slightly then that is the geology of Railway as it is understood to be so far....

I hope I didn't sound too condescending as not my intention. Couple of reds won't help...lol

Ideally we now want Railway to be that piece of paper in Landscape mode (the wider the better).

We know we have roughly 1500 mtrs mineralisation between UI196 and UI038 and NOW have confirmation of mineralisation 1200 mtrs in an east/west direction

1500 * 1200 = 1.8 sqklms

Allowing for an average thickness overall of 20 mtrs gives us 36 Mt with an SG of 3 gives us 108Mt of DSO Marra Mamba iron ore (the premium stuff everyone wants)
(( the equivalent ore coming out of Brazil that Vale settled on with the Japanese and Koreans actually had a 71% increase year on year))

This is where the 100Mt comes from and as I pointed out earlier it is a conservative figure BECAUSE mineralisation IS still OPEN to the west and east...(sorry for shouting stINCy Man) ie. we want a landscape picture not a portrait because the wider the better.....

Now as a comparison for example between FDL and UMC...
One has a conceptual target of 200+ Mt to 200 Bt based on the geology of the area...Fair enough....

The whole f*cking Pilbara has iron ore through it...so it is not surprising...

Ironstone (water)
Low grade (skim milk)
Medium grade (low fat milk)
High grade (full cream milk)
High grade low impurity DSO (JUST THE CREAM)

You see my point....We have indications of THE CREAM.....The cream of the crop...
And we still got Camp Hill full of full cream and low fat for the weight watchers too...

I'd rather be invested in 100 bottles of pure cream with all the indications so far pointing to it being there then MAYBE 300 bottles of SKINNY milk that the milkman says he might have but can't be sure..............

Now my assumptions are based on what I know to be available in the public arena.
The Directors and Geos are privvy to far more detailed and complex information making their assessment of potential resource far more accurate and likely then mine....

I believe they are conservative numbers because they are conservative people...

We can all agree that not once have they ran off and said hey we might have 300Mt because we are in the Pilbara and my compass won't stop spinning like a lot of other companies have stated with no concrete evidence at all to back up their claims with other then the location....

...and the fact that the milkman is dropping off milk in the area....