agm report.

Hi All.

A few comments from the AGM first.

The wharf for loading the ships will only be 300Mts long from land base.The rest you see on the port plan is dredging from the 24mt water level to 300Mt's from land.
Ships of 330,000 Dwt can use the Port.

The paperwork for one Study or Application to the Cameroon Government was said to stand nearly as high as the dais they were talking from behind.So over four feet high.
The cost for the rest of the studies and applications was spoken about,with drilling as well.they said these cost's would be more then the $17 million they had left.

When asked for names and numbers of interested parties for the projects,we were told,they could not because of confidentiality.

Don did say it could be 1 or more and most likely a steel mill and or a consortium.

The Rail-Port and Mine infrastructure they want to own them selves.Finance,build and run by others seems to not be the way they are heading if they can help it.

Funding through the likes of the AfDB-UNDF was too complicated and long winded way of getting Finance.

Financing projects to be in SDL's favour as they are the one's with the position of power as far as who they want and on what terms are agreeable.

The BOT system of,Private - Public finance partnerships we don't think will be used as we want to own every thing and be a long term producer.
If some one that was reliable come along with finance then yes.

Cameroon Government have to decide about taking up the extra 15% interest in SDL.Better for SDL if they do not as no dilution.It is a risk Capital decision for them.
Another Mining company did get cash from the Cameroon Government for an extra stake in that company last August.

Capex is not to be looked at as fixed at this stage as there will be savings in equipment supply and SDL are comfortable with the 3.3 billion until we get the best tender.

The Port cost for extra depth needed for ChinaMax ships will be minimal.

The Pellet plant is cheap to build and would only be around $200 million.

The first drill rig is on site and they just need to drill a couple of holes to make sure every thing works properly before sending it to start the drilling at Nebeba.
As they said yesterday another drill rig is on order as well,with the first rig costing $2 million.
Engineers have been on site at Nebeba for a few months. I think that will mean they are picking out the spots to drill and forming drill pads.
At Nebeba they will reprocess new data and pick up on other targets.

Short term focus is just on high grade iron ore.
We need to grow the high grade Resource and then look at the Itabirite again.
If iron ore is not above 35%Fe SDL are not interested,no matter how much is in place.That would be the cut off figure for the Itabirite.
Itabirite financially works and if the timing is right then do it Don said.

The mine pit was only planned to 400Mts to prove an economic case,then take advantage of greater depth of iron ore to 600Mts plus after that.

Don said Topographically high points were eroded for a reason and that usually meant there was high grade iron ore under the eroded soil.

The Rail line is being built to support 50 million tonnes per year.
There will be around 8 passing areas,with each area being a bit longer then the combined length of the locomotives and wagons.The passing area rail line can then be used as part of another rail line if needed.
Don said the rail line was being built for iron ore and industrial,not passengers.They are building the Rail to ensure reliability of iron ore.

The Cameroon Government have asked SDL to look for Gold and Uranium.Uranium is not thought to be prospective,but there is a bit around.The Gold ,they have not looked for yet as we want to be focused on iron ore.

I asked about the two iron ore tenements that Rio Tinto have in Gabon.I asked if they had been approached about them using SDL's rail if the tenements prove to be viable, as one is only 35kls from the Cameroon border and around 85kls from the nearest point of SDL's proposed rail line.
Don was not aware Rio Tinto had the tenements in Gabon.

I asked about the Les Mamelles tenement that SDL have applied for.
Don did not seem to impressed about it,as it was a form of Magnetite.He also said it had not been drilled.
I told him I had read a report the previous owners were trying to sell iron ore from it and that some drilling had been done.He asked me to send him the report.

A question about weather they had been approach by a very large Asian Government Banking Group and a very large mining and Infrastructure building Group brought a strange reaction.
Don and Peter Canterbury looked across at each other with big grins.As if to say,how did they know that about those companies.I was then asked to go to the next question.

The other SDL shareholder who was taking notes for me picked up on the reaction and spoke to me afterwards about it.

I do not want to say the names of the Asian Groups at this stage as I want to keep any trust that Don and Peter may have in me,with the view to any more talks.

I will say they are two of the biggest finance, and infrastructure groups in mining World wide from Asia.

On a personal view only.
I feel SDL share holders and any future share holders,need to understand the magnitude of the Iron Ore Resources and projects they are under taking.
Understand they are dealing direct with Governments,Government funding agencies,World Funding Agencies.
Sundance are having to organise their projects to fall in line with time frames of Government projects - African National Projects.To deal with a down turn in availability of Finance World wide after some of the biggest Companies in the Motor Industry - Finance Industry - Banking Industry and so on have been wound up.

This SDL Project has been touted as a Country making Project for Cameroon and the start of opening up the African Continent in this area.

Australian Mining companies only have to deal with a state Government when doing their mining studies and can take eighteen months or more just to get the studies through the Government Agencies.

Before closing I would like to thank every one who supported me in getting to Perth.I think a special thanks should also go to Talktome and Ausjpn for keeping lists of supporting people and transferring the proceeds to me.

Thank you every one.

Regards
Westcott.