kenneth talbot is adding more, page-28

Hi (thegun)

Sundance have been approached by the World Bank,The Development Bank of African and other such financial groups to offer financing for the project.
I have already pointed out to you the Chinese groups want to finance the lot.
Ports,Rail,Water,Power,Infrastructure,Communications and Roads.

Sundance have said around the middle of 2009 they will be announcing off take and partners with the finance coming through at the end of 2009.

Why would the Chinese & Indians invest in West Africa you said.

You now say the Chinese have their own projects in West Africa.

Posco and 5 Japanese partners invested in iron ore in Brazil near the end of last year.Brazil is a lot further from China and Asia then West Africa.

VALE of Brazil is the biggest single supplier of iron ore,with RIO and BHP next in line.
VALE sell iron ore to China,Asia and Europe.

You say the iron ore is 38%Fe.It is 40%Fe average and they expect to get it to 44%Fe.In September 2008 when the total was 1.75 billion tonnes,It had 800 million tonnes averaging 43%Fe Itabirite.
The Itabirite will average over 40%Fe and end up between 65%Fe & 68%Fe after it has been worked,before being shipped.
The mills will be buying 65 to 68%Fe not 38% Fe.

RIO and SDL or to be precise Cam Iron SDL's other company, have the rights to build two of the four port areas.They will build or others will finance and build the projects for them.

It is not irrelevant that POSCO are building rail lines in The Congo.
Sundance have tenements not far from where POSCO's rail line ends.POSCO have shown interest in SDL
Sundance are looking to send the iron ore from the Congo by rail through Cameroon to their Port facilities.
From the Atlantic coast by rail to Northern parts of The Congo,it is less than half the distance going through Cameroon then through The Congo.
The rail lines could eventually join up.What a tourist trip by rail.

Where are POSCO developing a 1 billion+ ore body with much higher grade than SDL? Don't think so.

SDL has DSO of over 69%Fe in some areas.
Of the 6 drill holes the UNDF drilled at Metzimevin one was 64.9m at 65.7%Fe,another was 36.9m at 64.6%Fe with massive hematite persisting to a depth of 200m.

Regards
Westcott.