Ann: Legacy Joint Venture to Develop Mt Bevan Iro, page-40

re: Ann: LCY: Legacy Joint Venture to Develop... Too right,JD.

The game`s afoot and in an unexpected way-JMS have a lot on their plate and it`s not impossible that they will sell out themselves.Share issue to Legacy might have been at a higher price but we are only talking about 25m shares-hardly dilutive in the context of the 1.5bn+ already in issue.Anyway,another A$1.5m to drill around Deep South/Mexico and maybe do a deal with Saracen there.

Don`t think that the market sees how good a deal this is for HAW.Pre-feasibility includes all aspects of proposed operation including the mining plan,metallurgy and processing,waste and environment,capital and operating costs as well as-crucially-providing an economic evaluation of the resource.The question is-how much is 40% of this last item?

JMS has a conceptual JORC target for Mt.Ida of up to 1.3bn tonnes of magnetite.The magnetite is similar in width and grade to Mt.Mason and the area is marginally longer (7.5km to 7.2km) than
the JORC target at Mt.Bevan.

For the purposes of what is no more than back-of-the-envelope speculation will hopefully be conservative in guessing that there is less than half this conceptual target at Mt.Bevan and that the inferred JORC resource at Mt.Bevan will turn out to be 400m tonnes.

We know from Snowden`s recent valuation of the in-ground JORC inferred resource at neighbouring Mt.Mason (a better comparable in terms of value per tonne as Mt.Ida has no haematite) that this independent professional valuer ascribes a current in-ground value of A$2.00 per tonne to the resource.There is no reason for the Mt.Bevan ore to be worth any less and on the tonnage speculated HAW`s 40% share would be worth A$320m or around 32 times current market cap.Most importantly of all-it would be worth this by 31st of December 2012 as if this deal goes ahead Legacy cannot hang around.

This is all just thinking aloud and the resource may turn out to be nothing like this big but it could just as well turn out to be a lot bigger.It is worth remembering that the IO doesn`t stop after 7.2km-this is just the area to be appraised-and that the tenement runs for 25km+.

Anyway,it gets HAW out from behind the 8-ball of finding the cash to JORC Mt.Bevan and that has got to be a major achievement.Like most others I`ve had a pop at the management in the past and am only too pleased to say-well done!