Heamitite (DSO) are more valuable but rarer, and the quality of DSO deposits that are newly discovered and getting poorer. Large scale DSO deposits are not to vast anymore. FMG, BHP, and RIO have all the large deposits. DSO - "direct shipping ore" is simply dug out of the ground and shipped away to be sold. Magnetite on the other hand requires processing and has significant costs associated in doing so. DSO is around 55%+ grade iron, while magnetite is 25 to 35% grade. Magnetite needs to be processed in order to be sold/used. Cost of setting up our Karara magnetite project is around $1.8 billion AUD, however its an enormus resource. IMO magnetite will be the future.
Basically GBG has a small amount of heamitite and a significant amount of Magnetite. Our Karara project is the highest quality magnetite mine in Australia with the best stripping ratios and I think its also the largest. If you beleive in magnetite, GBG is the investment for you.
GBG Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
