Hey Guys
Looks like the offtakes/finance/DFS news will happen over the next couple of months.
Share price will drop off because of the day traders moving onto something else, which is fair enough for them. Not for us long term holders! :)
A couple of things I was very excited with this quarterly announcement and one from mid last year was the drilling results.
The latest drilling update shows an increase in "real estate" or drilling area!
Not only has there been infill drilling, basically drilling between existing drill holes to better define their resource and increase its value by moving it from Inferred towards Indicated and Measured categories!
BUT, there has been drilling in previous areas of non drilled real estate. You can see large blank sections in the old announcement between the two ore bodies!
Now, again, read between the lines..................compared the notation of the previous announcement in Q3 2010 to the current one! :)
The Current Strike length is now 3km long and the Grades are in Excess of 60% Fe!
The strike length from the previous announcement was between 1-2km long!
This represents an increase in the strike length of the iron ore body by 70-95%! An iron ore strike length of lets say 1.7kms to 3kms says to me a significant total iron ore resource increase is on the cards by the end of 2011!
That's why they have been taking so long to complete the DFS, they are waiting for all the additional drilling to be added to their DFS! And this is the high grade hematite iron ore strike length increasing!
What does this mean? As we have mentioned in previous HC posts, an increase in overall resource will mean SDL will be able to increase their annual iron ore production, revenue and profit! :)
Let the market move, it wont be long before it bounces back big time!
Can't wait for the DFS in March! :)
GO SDL!!!
