company say project will proceed

Company is firmly of the view, that the project will proceed....which is in stark contrast to how the market accesses this iron ore project.

A deal could be signed within weeks.....according to Pluton,which would provide framework funding for the project.

Very significant shareprice appreciation would likely happen, if that deal is forthcoming.

What is at stake here...and rapidly coming to a head - is the fact of a 32 cent shareprice verse $3.80 NPV shareprise estimate.....and with the possibility, even likelihood of imminent funding, such funding would mean the project will happen.

Not too sure that shareholders really appreciate the knife edge extreme upside here....as least that the way it apperars for this $60m.

Called here by some other posters also....(given a very likely gap up Monday eg 35 cents, the shareprice would have risen 50% in a week......but still down from 76 cents on the 6 June, when the misunderstood PFS was released. (more comment at very bottom)

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Quote from Pluton:

??The PFS has provided us with a roadmap for development of Irvine Island which includes an initial stage of on-island processing to produce a 40% total iron pre-concentrate which will be shipped to Asia for final beneficiation?.

??This will produce a high quality iron ore averaging 67% total iron containing universally low impurities. We believe the final concentrate would attract a significant premium within the market when sold?.

??The Company has been in discussions with several Asian beneficiation companies and end users who are willing to work with us to produce this high quality product for their markets. The PFS result gives us the confidence to finalise commercial negotiations in the near future?.

??Importantly the process selected for the project ensures that we meet our stakeholder and environmental objectives. These include providing employment and business opportunities for the traditional owners of Irvine Island, the Mayala People and minimising the environmental impact of operations on Irvine Island?.

??On the basis of the Pre-Feasibility Study results, we will now proceed with confidence to a Definitive Feasibility Study. Based on the delivery schedule prepared by Pluton, the intention is to achieve first production in late 2013/early 2014 subject to approvals?.

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At TODAYS iron ore sale prices...and cost of production advised in the PFS .....profits on their stated 4.4mtpa @ 67% will be $450m to $500m PA.(before tax and interest)

4.4mtpa is a large project...higher levels of production than that of Mt Gibsons nearby Koolan Island (4mtpa).
Bhp 130mtpa - Fortescue 55mtpa (of passing interest)

The deposit has an extremely low waste strip ratio....at surface In a 2010 brokerreport, it was suggested the eastern clifface would be removed allowing access to the deeper,higher grade Yampi Member....which is covered by the 40 m thick Wongarin Sandstone. (simple, easy mining, at least in stage 1.)