hi (copy of email)i am looking at the announcement of 21 October...

hi (copy of email)

i am looking at the announcement of 21 October 2010

already, the FE1 Prospect has found 100m wide x 500m long x 80m thick x density factor of 3 = 12 million tonnes

it is theorised the drill results are just one the edges of the magnetite (see attached picture)

so the FE1 Prospect could have at least 50 million tonnes of magnetite

this is not much. It is only worth $10m to $15m as part of a large resource

but AHN say they have 20km strike length of prospective magnetite iron ore horizon (Dec quarterly report)

so if AHN can prove up 8km long x 500m wide x 80m thick, this equals 1 billion tonnes, which is an excellent size deposit

as the quality is very high, it could be worth least at 30 cents per tonne in the ground or $300m. On 175m shares, this is worth $1.70 per share.

But it will probably take up to 18 months or even 2 years to prove up the tonnage because the iron seems to be in pods rather than in one discrete straight line.

Regards