True bungy. The MGX example i gave fits that criteria, but MGX's deposit while in the midwest, is not as close to PDY's than say the Crosslands or Montezuma resources. These are our best current indicators as to what PDY might have in my opinion. Though nearology is obviously by no means definitive.
MINERAL RESOURCES AS AT 30 JUNE 2009 (ABOVE 50% Fe)
While the figures you quoted may be historically true for regulation DSO hematite, the cutoff levels are not the be all and end all. In my experience, a company who has a contract to sell ore at say 60% Fe, can still send a boat load over at a 59% Fe average, but will incur a price penalty. The same scenario exists for less than desirable levels of Silica, Aluminium and Phos in the ore. The technology exists to remove these impurities but this just comes at a cost and is a matter of negotiation. Levels of impurities higher than those you have stated effect the feasibilty of a mine, but are not a deal breaker. You will notice above that both MZM and Crosslands have higher levels of impurities AND lower Fe content than MGX, yet both are fast progressing towards mining.
It should be noted that PDY has stated that it is initially targeting 110MT of DSO. What chance it has a few pockets of really good stuff, let alone the advantages of economies of scale?
PDY Price at posting:
2.0¢ Sentiment: None Disclosure: Held
