Ann: Wilcherry Hill Development Update , page-2

This interview indicates that WISCO should finalise their due dilligence on IFE by end of year. This should coincide with the resource upgrade because WISCO would not approve expenditure on a BFS without a worthwhile 100m/t starting point.

The BFS will include a blitz on more holes to prove it up to say 300m/t. or else 4mill tonne p/a will not have a worthwhile mine life.

It appears that with or without WISCO, IFE have started working on other aspects of the project as to not delay start of production. These may include enviromental studies, heritage surveys and all other application requirements needed to start a mine. This way we preserve cash now without delaying the process. (This was also mentioned at AGM) Of course if WISCO agree to basically open cheque book for BFS, then no need to preserve cash and drilling will be full on and rapidly done immediately.

I would think WISCO did not stumble across IFE and have already done some homework prior to MoU. The fact that they are on site now means that only a major flaw in the past assay or metallury results would sway them to pull out at this stage.

So in saying all that (this is the ramping part) if they pull out we still move on but much slower and the share price goes back to near 15c or stays at this level due to a healthy resource upgrade.

The alternative is IFE will have a gorilla who will fund the BFS and the share could rocket back towards even a moderate $30mill M/cap (.75c). Then if all goes well with BFS and they are happy to go halves, well I can see plenty of room for another significant re-rating.

The is risk/reward from current price point is surely tempting now to even conservative spec investors. At 25c the M/cap is $10mill, so if the above plays out, even in this economic climate there is plenty of room for major upside.

Of course you can always stick with the herd and try find the next Pilbara jewel. In the meantime I will follow the 3rd largest steel maker and try and workout what advantages they see in Wilchery Hill.