ceo sleepout, page-5

Gidday goarmy,

Just had a very brief look at the pdf and saw the word "concentrate", so I'm assuming the deposit is Magnetite and not Hematite. Magnetites usually have a lower Phosphorus readings than Hematites which is obviously a big bonus.

Moreover, since it's a concertrate, the mine's operator is the one that nominates the final grade. What I mean is the Fe grade of the deposit could be as low as 30% Fe, but post beneficiation, the concentrate could be as high as 70% Fe. Hemetite (Fe2O3) in pure form is 70% Fe (Iron) and 30% O (Oxygen) by weight, where as Magnetite (Fe3O4)can be as high as 72% Fe by weight.

http://www.australianminesatlas.gov.au/education/fact_sheets/iron.html

http://www.magnetitenetwork.com.au/who-we-are/magnetite/

The important things to look for in the pdf are the costs involved such as capital expenditure (capex) and operational expenses (opex). Also look for any available infrastacture near the mine gate, or the time line before there's available infrastacture.

As you would already know, at Nullagine, BCI is moving the material by road a distance of 50Km to the railhead. So the rail line doesn't necessarily need to be at the mine gate. I'm not sure of the geography over there however, and if that could make any difference.

Also, BHP's line is actually closer to Nullagine than FMGs. The reason that BCI went with FMG is that Mike knew he had no chance of piggy-backing off BHPs rail line. So it probably wouldn't be a bad idea to spend a nana second researching if the rail line (if there is one) is exclusive or can be obtained by a third party. I remember back in 2007, in Australia, most analysts considered juniors such as Brockman and Atlas jumping onto one of the three majors rail lines as little more than a formality. Come 2014 -- Brockman has sold out (gave up!) and Atlas is still trucking it's ore by road because they haven't been able to do a rail deal with FMG or BHP. The pdf I'm sure will be presented with those important factors in mind. I hope this helps.

P.S I might have just been talking through my hat, as mentioned though, I only had a BREIF look at the pdf.