hamik and mafs, I have started a new thread with a broader...

hamik and mafs,
I have started a new thread with a broader subject than the zinc thread as I think it needs a more detailed discussion than the zinc potential which I started in the last thread .....
If we wind back fms ( Flinders) to the middle of last year and look at the stage of resource identification that I think GDA is at compared to Flinders 12 months ago from where we are at the present........

FMS has tenement 882 which they have done sampling on and are drilling now and have the advantage of the good data and resource continuation of the FMS knowledge adjoining 882 . The FMS iron-ore was in the ground before Flinders acquired the tenement, before the sampling found it and before the drilling will reveal it's quantum. FMS also have very large diamond target tenements.
GDA has very considerable upside I think, with Corunna, comet, Wallal plus Moodong, and the Parker Range and CAZ jv ( plus whatever they are putting together in China). I think we can compare FMS when it was FDL and trading at around 1.5c with over 1 bn shares ( generally speaking) and GDA has just 57.888m shares and trading around 30c. GDA has a similar mc at the moment to the old fms did back in middle of 07. FMS has a lot more options on issue than GDA which when fully diluted will further increase their mc if they retain the approximate share price ( which is very possible as they move through the various stages of resource JORC).
FMS has about 17 times more shares on issue than Gondwana without taking into account the options of both companies which means a comparison of the share price based on a similar number of shares would mean Flinders with the similar number of shares as Gondwana (about 58m ) would mean Flinders would be trading at about $3.87. (1bn multiplied by 22.5c divided by 17) ie, more than ten times the current Gondwana share price.
Coincidentally, if we do the same comparisons of the current Gondwana share price and divide it by 17 to compare Flinders with Gondwana on same number of shares basis, it works out at about 1.7c which is around the share price Flinders was at a few times in July last year.
I think FMS and GDA are very comparable. I also think there will be a considerably larger tonnage identified for Flinders within their 882 tenement that currently estimated.

I am currently studying the announcements from yesterday to try and estimate forward market cap potential for Gondwana and am heartened by some of the statements in yesterdays announcement (it's well worth re reading). I think the deferred settlement has kept the GDA share price constrained which is good for long term sp growth rather than if it was freely trading and day traders had pushed it up to around 60c and then the share price dropping back ( by a third) like most high volume trading shares tend to do with rapid spikes in share prices. This tends to be detrimental to smaller holders as they often buy in on the high end of a spike when large volumes are occurring due to significant day trading activity.

A couple of things in Flinders favour is firstly a potential announcement by Fortescue in July ( Fortescue have stated publicly they are going to make some major announcements about large expansion plans)that could see the rail spur extended to serenity which could open up a transport solution for the Flinders iron-ore and secondly, the 7m odd shares FMS has in their off shoot Maximus,could add considerable value to FMS which could see the ( MXR) Canegrass vanadium rich magnetite prospect ( currently being drilled) become bigger than anyone thinks at the moment.

The things in Gondwana's favour are firstly, the further exploration of the new iron rich Corunna downs prospect and the potentially economic copper and zinc prospects within the Comet tenement in the East Pilbara and secondly, the 25km long strongly indicative iron-ore anomaly potential at Wallal downs in the north east Pilbara which will evolve further towards the end of the year. The closeness of Corunna to the Fortescue rail (only 80km) and the fact it is only about 100km north of FMG's cloud break operations as well as Andrew Forrest's open access declaration, means Gondwana is ideally placed to get access if any one or all three of the three resource prospects within Gondwana's Comet and Corunna tenement's prove economic.

Gondwana previously was focussing on Gold at Parker Range but I think they will push ahead with iron-ore, copper and zinc exploration in a timely manner in the Pilbara.
Gondwana is cheap at current prices like Flinders was back in the middle of 2007. The difference between the two is that due to Gondwana's much lower number of shares on issue, the share price increases could be much more dramatic for Gondwana than Flinders if Gondwana get JORC compliance with economic feasibility.