Hi WestcottI read through your response and see that you didn't...

Hi Westcott

I read through your response and see that you didn't actually say why you were unhappy about NSL:

- taking a different approach to BHP RIO and the other big IO players
- share price moving from 0.5c to 3.5c (yes 7 times increase) in 12 months under the current management
- having identified, acquired and commenced mining at two tenements in less than 12 months
- proving they can get ore to the port and that they have a ship organised to take the first of it to China late this month
- identifying and secruing rights to purchase a third (and likely more substantial) tenement

Since you didn't indicate any problem with those things in your post I guess you are totally overjoyed by them like me.

You did raise a couple of other issues in your response though and I can only assume that those few minor issues are the main problems you have with NSL so let me try and set your mind to rest where I can.

Firstly, all I am seeing the company announcement extracts you posted is a history of an evolving business plan and operations in the traditionaly dynamic business that is mining, so I won't bother commenting on those except where you have made a remark to suggest there is something sinister or mysterious going on.

NSL>>> An updated estimate will be generated upon completion of the drilling program,which is expected in the new year,post commencement of operations.
Westcott>>> I have not seen any such update on resource figures for this project which has been drilling and stock piling ore
OT>>> They are not allowed (by the ASX) to make any statements regarding ore reserves until they have a JORC compliant one. Recall that the ASX had them withdraw any anouncements that refered to value and/or grades.


NSL>>> December 2009. NSL Consolidated is pleased to announce that it has commenced mining iron ore in India and is on track to make its first shipment to a Chinese customer in January 2010
Westcott>>> March 2010,3000 tonnes at port
OT>>> Yes, they are a couple of months behind their original shipping estimate. But you didn't happen to mention in your post that their last announcement explained their had been delays with the contractor getting their crusher mobilised. Delays like that happen, whether we like it or not, even in Australia, and as I mentioned in an earlier post - from no assets to producing ore in less than 12 months is a good effort by anyones standards.


Westcott>>> How much money is being paid to PODAR?
OT>>> Irrelevant. How much money does BHP spend with Snowdens? All mining companies use consultants. You can't work in developing countries without utilising local expertise.
Westcott>> How much money is being paid to Natural Resources Consulting Pvt?
OT>>> See my previous comment.
Westcott>>> They are identifying resources,doing due diligence,feasibility studies,project negotiations,regulatory compliance,post acquisition activities management and financing activities. Sales agent for iron ore sales and a facilitator on behalf of NSL in the establishment of all mine service contracts,recruitment,statutory compliance and further acquisition services. Also manage logistics,approvals and contracting arrangements. What do NSL Directors and staff do?
OT>>> Find and acquire mining tenements in accordance with their well publicised strategy (2 mines acquired and third under contract pending detailed due dilligence). Again, whether they do that with the assistance of consultants is irrelevent.

Westcott>>> The estimates and Assumptions are subject to significant uncertainties and,accordingly,the actual costs may materially differ from these estimates and assumptions,NSL said.
OT>>> Looks like a pretty standard blurb you will find in the risks section of any prospectus. Did you see in the last announcement that they confirmed that the cost of trucking the ore to port was inline with what they had planned?

Westcott>>> Assays being done through SGS Australia. How many tonnes resource are at each tenement? What are the impurities levels?what are the grade of the iron ore assays that have been done? Without the assay results,how can they be sure of the grade of the iron ore they are digging up and sending to port?
OT>>> They are not allowed to make announcements for non JORC reserves.


Westcott>>> Both of NSL's projects are in close proximity to established road and rail systems that have available capacity and reliable third party access. How come they have no rail deal contact?
OT>>> It is not unusual for contact negotiations to take time in India or any other developing country (maybe why nobody else has been able to do what NSL has). Whilst they haven't completed rail negotiations, in their last announcement they have put in place a trucking contract with 1Mtpa capacity - so they are not under any great pressure to accept unfavourable rail contracts.

Westcott>>> NSL say the rail system to be used will only have capacity to rail 3,480 tonnes in each trip.This does not sound like an up to date system of rail infrastructure.
OT>>> 3480 tonnes per load would require less than one train per day to achieve the planned 1,000,000tpa for the two mines.


Hopefully my opinions here help you to overcome your doubts about NSL, Westcott......but I have the feeling you are posting with a whole different agenda than simply deciding whether to buy, sell or hold....