Ann: Quarterly Activities and Cashflow Reports , page-4

re: Ann: Quarterly Activities and Cashflow Re... One has to expect some sort of correction given its strong run lately There is also going to be a relative lack of news in the coming couple of months (maybe a scoping study for Yerecoin) given the break of drilling over the cyclone season.

I guess, key points from the quarterly (its quite large):

(a) 185Mt, which is pretty cool, and should be considered a decent start, but will significantly increase in the next 12 to 18 months. EV approaching $1/t is pretty low, considering that a lot of this tonnage is not in the sticks, but at the very worst is truckable to Port Headland. And possibly, could be transported via rail spur.

(b) Key play in this company, is McPhee Creek. 71 holes equalled 52Mt, which in anyones books is a pretty good start. Key point here is that the company target of 100 to 140Mt is only on the western side of the range only. They also seem to be confirming a hypothesis I made a while ago about mapping indicating that mineralisation is forming in a synclinal keel (see post Post #: 4831168) which is pretty cool. Note, some of the calculations I was playing around with here, suggested around an eventual 320Mt target (see Post #: 4861576). Obviously this would need another 6 to 12 months before we can see anything tangible. But has anyone thought what this company would be worth oif Daltons reached 100Mt and Mcphee Creek reached 320Mt this close to Port Headland. The re-rating of this stock would be monumental. The company are talking about road haulage but that is simply ridiculous. Again, as I have mentioned before, this would be a rail spur. Unfortunately there is no timetable for drilling so we must assume that it will likely take place 2Q10.

(c) No real mention of the Western Creek (the continuation of the Silver Knight deposit). In previous announcements they talking of eventually doubling this deposit, but is reliant on BHP for mining to go ahead. Which is simply a matter of time. What is interesting though is talk of drilling the Homestead prospect. CID targets, again wouldnt be mined for some considerable time but interesting all the same, and would add to the total mix.

(d) Daltons needs to increase its tonnage, mining 2Mtpa is too small. If they could double tonnage, and mine it in conjunction with AGO, that would be a goer. Especially if there was rail access. At present, approximately 50% of the costs would be road transportation costs which are way too high. If they could get this to +70Mt, plus AGO tonnage, then one could justify a rail spur. You would want to retain this deposit, but have a third party mine it. Just share the infrastructure. No mention of drilling so it would be safe to assume 2Q maybe 3Q10.

(e) Anthiby Well seems to be the next iron ore project to garner some work in January. Currently 38Mt. Looks fairly close to Tom Price. CID mineralisation, although quite high grade (32m @ 55%. Apparently they are doing some beneficiation work to see if they can up-grade it. Heres hoping. Maybe it could be something like BRM, which has a mass of stuff around 40% but can be readily beneficiated.

(f) Yerecoin is interesting. The big benefit to this project is that it is extremely close to existing infrastructure. 143 drill programme is due to start in February. Maybe the company could do a AGO and ramp it Call a trading halt and say look at this, we are about to do a deal, nothing new, but its a good idea anyway.

(g) Note they are talking about magnetite at Beebyn, but unlike Yerecoin, its miles from anywhere.

(h) Not sure what to make of the land grab around Nifty. Pretty remote, and expensive, deep cover, and I hope legal costs wont be too much. But interesting ground.

(i) Drilling around Lake Frome has yielded little, which is somewhat disappointing. No timetable on what the next round of drilling is. At least they dont have to pay any expenses.