1.2 billion tonnes ioh ......from rock chips

The recent NSL announcements were very well worded.

They were correct in what they said.

A potential 500-700 million tonnes of Iron Ore...but from Rock Chip samples.

The company goes onto to say "non-JORC resource"

Yep...obviously. How do we really know anything about a resource when they rock chip samples from the surface.

The NSL share price has done well on specualtion.

My question though...as I have questioned CFR.....with NSL being in the health industry and probably the only metal they have seen is from making dentures.....why does everyone believe this is next big thing.

They said "we're medical....but going into mining.....merged with this indian mining company....took 120 rock chip samples....reckon there could be 1.2 billion tonnes of iron ore down there....so based on that...we are putting out another 1 billion shares etc etc".

In these turbulent financial times....if you are going to trade or invest, I personally would be looking at company;s were you believe there is true value, ie: proven resource, management you can swear by and a track record of success.

As for the ramping of late...and that on CFR, I feel for those who have followed it without doing proper research....but it might end up be ing a good lesson for those who have done this.




FROM THE NSL announcement.

A detailed review of the Geological Survey of India’s (GSI) historical exploration database has been performed from the Iron Ore Hills Project in Southern India. IOH conducted additional field reconnaissance and sampling work in 2007/8 over the 3 contiguous hills which form part of the Iron Ore Hills Project in Kozhikode, Northern Kerala, India. The previous evaluation undertaken by the GSI between 1968-1973, evidenced an historical reserve to a non-JORC standard. Given that this historical estimate was not to a JORC standard, it has not been included in this information. NSL may seek an ASX waiver in due to course to allow the release of this information to the market.
107 rock chip samples have been taken to date spread over the Iron Ore Hills Project area, where the average assay result was 42.3% Fe results from the sampling have significantly expanded the previously defined areas of economic Fe mineralisation and therefore increased interest for a detailed review of the historical drilling database which shows the system is open at depth and requires further deep drilling to assess the full potential of this major Fe deposit. This work will now be undertaken by IOH.
The primary Fe mineralisation at the Iron Ore Hills Project is described as being banded magnetite, quartzite, with the Iron Ore Hills Project exploration potential delineated over an area in excess of 6.0 km x 0.5 km to a depth in excess of (+/-) 120m using a bulk density of 3.2. Interpretation of the data has resulted in the identification of new Exploration Potential of 500Mt to 770Mt grading 25% Fe to 35% Fe. An exploration target for the Iron Ore Hill Project has been set at 1.2 billion metric tonnes.
Note: The potential quantity and grade of the project are conceptual in nature and there has been insufficient exploration to define a mineral resource. It is uncertain if further exploration will result in the determination of a mineral resource.



In consideration for the sale of all of IOH’s shares to NSL, NSL will allot and issue to IOH shareholders in proportion to their shareholding in IOH (on a post consolidation basis):
(a) 400,000,000 fully paid ordinary shares in the capital of NSL (NSL Shares);
(b) 100,000,000 Class A Performance Shares which shall automatically convert into NSL Shares (on a 1 for 1 basis) if, within 24 months of the date of issue of the shares, a JORC compliant measured resource of at least 500m tonnes of iron ore grading an average of 30% (Fe) is defined in respect of the Iron Ore Hills Project area;
(c) 100,000,000 Class B Performance Shares which shall automatically convert into NSL Shares (on a 1 for 1 basis) if, within 36 months of the date of issue of the shares, a pre-feasibility study over the Iron Ore Hills Project area is completed (and verified by a reputable firm of external consultants appointed by the independent directors of NSL) and the results of the pre-feasibility study confirm the economic viability of developing the Iron Ore Hills Project with a net present value of greater than $320 million; and
(d) 200,000,000 Class C Performance Shares which shall automatically convert in aggregate into that number of NSL Shares that is equal to 200,000,000 divided by the greater of $0.50 and the 20 trading day volume weighted average price of the NSL Shares as quoted on ASX prior to conversion, if, within 60 months of the date of issue of the shares, production commences at the Iron Ore Hills Project, binding sale contracts are executed with reputable third parties (as determined by the Company and the holders of the NSL Class C Performance Shares acting reasonably or, failing agreement with 14 days, by an independent person appointed at the request of the Company or a holder of NSL Class C Performance Shares by the President (or person acting in that position) of The Institute of Chartered Accountants in Australia (Western Australia Branch)) for the sale of a minimum of 6 million tonnes of iron ore concentrate (or the equivalent in pellets or Fe content) and 200,000 tonnes of iron ore concentrate (or the equivalent in pellets or Fe content) are delivered to a third party purchaser.
All of the above Performance Shares will be subject to the following overriding conditions:
(a) if the relevant condition necessary for the conversion of a class of Performance Shares has not been met by the relevant date, then that class of Performance Shares will be redeemed by NSL for the sum of $0.000001 per share at any time thereafter; and
(b) if, before the relevant date, NSL completes a sale of all or a substantial portion of the Kerala Indian Project for a sale price (in cash, securities or a combination of both) of at least $640,000,000, all of the Performance Shares will automatically convert to NSL Shares at the relevant ratio.