Bungy, Sinosteel themselves are gearing towards Hematite...

Bungy, Sinosteel themselves are gearing towards Hematite production across all their Midwest projects. Sinosteel are targeting the Robinson Range as their largest producing asset in time and is considered a purely hematite play with supplementary managanese. Padbury Mining have the largest tenure over the Robinson Range of all ASX listed explorers. All Sinosteel/s other project areas are being considered as magnetite plays whereas magnetite has not been mentioned yet in this area apart from Padbury Minings own Magnetite Exploration Targets.

From early on I have considered this area to be a large scale magnetite play with the early and most significant value coming from the Hematite.

I would really like to see some DTR from the previous drill program targeting the Horseshoe formation. Historical gold drilling programs in the Mount Beasley vacinity have intersected iron ore grades from 15-30% but mostly below 20%. I see this as encouraging because it proves there is iron ore there, to about 50m, in areas not targeted for iron ore in the first place. With low impurites even 20 odd % Fe magnetite can be concentrated to 60+%. Unfortunately no results were released from that drill program other than my target at Telecom Hill. I still refuse to write off the Horseshoe formation and believe a better planned drilled program should yield significant results.

Having said all that, I still believe that PDY needs to target the DSO up front and aggressively. A DSO resource has a much shorter lead time to production and is therefore a faster route to cash flow.

My views are based on a longer term strategy involving extracting maximum value. This involves maximum work. These views may not be shared management or short sighted individuals looking for a quick buck.

Below is a summary of Sinosteels projects and it paints a clear picture of their view of the Midwest.