implied value of magnetite

Implied value of a magnetite project now has a sound base from which comparisons can be made following the sale of the Cape Lambert project containing 1556mt of magnetite for $400m which represents an implied value per tonne of 26c ,refer to the ocean equities report.....

http://www.minesite.com/fileadmin/content/pdfs/Brokers_Notes_July_08/Iron_Ore_Sector_Update_July08_Ocean_Equities.pdf

There is an abundance of good reading in the report that helps puts Maximus's canegrass magnetite project into perspective.
But one in particlular from the report is....

"Exhibit 9: Implied valuation of the sale of the Cape Lambert namesake project to MCC
AUD
Cape Lambert resource (mt)1,556
Total proceeds (m)400
Implied value/t0.26
Current size of resource mt
Atlas - Ridley/Pardoo853
Aurox - Balla Balla473
Australasian - Balmoral Sth1,000
Gindalbie - Karara1,430
Grange - Southdown479
Midwest - Koolanooka430

Implied value of:A$m
Atlas - Ridley/Pardoo219
Aurox - Balla Balla 122
Australasian - Balmoral Sth 257
Gindalbie - Karara 368
Grange - Southdown 123
Midwest - Koolanooka 111
*Figures shown here are total deposits only.
Source: Company data, Ocean Equities research"

The current magnetite target for canegrass published in the Maximus announcements to the asx is 1,700mt to 3,000mt.
With an accepted implied value for magnetite now established as being 26c a tonne, the maximus target reflects a target with an implied value of between 1,700mt X 26c =$442m and 3,000mt X 26c = $780m.
With approx' 153m shares on issue, this could represent an implied value for the Canegrass magnetite of between $2.89 $5.09 a share for Maximus. I think this is too high at the current stage of the Canegrass drilling campaign.
The company's low side target is similar to that which the Cape Lambert resource was sold as.
As usual, DYOR please.
The Ocean Equities report has lots of other useful data relating to the magnetite infrastructure issues in the midwest and includes an excellent table ( exhibit 7 on page 9) which summarises infrastructure for juniors and third party access etc.