Ann: Placement , Share Purchase Plan and Underwri, page-83

re: Ann: Placement , Share Purchase Plan and ... Hi (8591)

My thoughts on your question.

A company who have to drill to find more iron ore and do not have very much cash to do a lot of drilling.
They are likely to be satisfied with sitting on what they have found to conserve the cash.

A company like SDL who know they have a lot more iron ore and where to drill to add it to their JORC resources.
If they are sure of getting the cash backing to push ahead at the end of 2009 to start building infrastructure to start mining.Would you sit around waiting for year end?

Better to keep spending as much as possible on the tenement at Mbalam for the rest of 2009.You know you will be getting around $50 million from The Cameroon Government when you have every thing ready to start building the infrastructure.

I think with out checking that the Cameroon Government share is in EP92(I will look it up after posting this to you).SDL have said,Airborne geophysical survey completed over selected areas of EP143 and EP2007-362 and EP2007-363 with new Itabirite and DSO prospects identified.
I think SDL will keep drilling to find a lot more DSO as well as Itabirite.I think it is important for them to find as much DSO by year end.They will need to be able to back up with drill results of 500-700 million tonnes to give J/V partners continuity of supply especially if they are to have several partners for DSO lump-fines - Itabirite DR and BF Grade Concentrates,plus I think they were talking of having a pig iron plant.

Tenement EP143 has had no reports of iron ore announced.As I posted to cabbott1 yesterday,I believe from looking at Google over the area that there is a big strike of iron ore running from half way across the southern boundary to the Eastern boundary of EP143 and over the border into Congo.The new Aeromagnetic survey shows strike areas on EP143 which have not been shown before leading down to this area.Also shows strike areas going over the border into Congo which appear to be extensions from Meridional.

The directions I gave to Cabbot1 can be looked at by any one so we can get opinions from others as well which will tell me if I am wrong in what I think I see or I am right.
Please have a look at the sites I looked at.You will need to move around quite a bit from North -W-S and East and up and down and in and out with the magnifier.once you can see the total area move in to Mbalam and move down and across at the same magnification so you get a better idea as to the size of the areas compared to Mbalam.

I would think with the likes of ArcelorMittal and Tata looking over Mbalam they would have looked at the other 3 tenements.
If I was in their position I would be saying.Keep drilling as much of your tenements for the rest of 2009.Then when we hand over finance for Mbalam we would like to have a better idea as to how rich in iron ore the other tenements are.We do not want to be part of a bidding process for helping finance these projects.Prove them up sufficiently to us and we will sign up to finance them at the same time as Mbalam.

Regards
Westcott.