consolidation, page-21

Hi (A9X)

Before people say I am down ramping and negative.

You ask why the Brokers are not all over it?
You ask why has the market not latched on?
Six points come to mined.

1.First project had problems so the drill rig was moved to the second tenement.
2.First exports of iron ore were to start in February.
Now looks to have been put back.(Due to (1) above I would say).
3.From the announcement only one of the tenements has been finalised.The way I read it.
4.They announced for the first time on Friday that the iron ore was to be transported by road 330kl to the port,it seems as if this is the way it will be transported for quite a while.
I think every one was expecting the ore to be railed.
5.Transporting 3,480 tonnes over 330kl will not be cheap.
Refer to my post on 31/01/10 02.13am.
Think how many truck trips will be made to transport 3,480 tonnes,plus trucks coming back maybe empty,so 660kls of diesel fuel and man hours for maybe 20 tonnes per truck.

6.Obviously the more iron ore per train set,the cheaper per tonne it is going to be to transport to port.
If they can only transport 3,480 tonnes by train the 440kl to port,even that will not be cheap per tonne.Being 880kl return trip.With rail they will have to rely on the train getting a return load I would think to not have to pay a return empty fee.

In the Pilbara I believe it costs the big companies,BHP and Rio Tinto about 1 cent per tonne per kl.That is with transporting around 20,000 tonnes per trip.They are about 100kls less distance from Newman to the port then NSL's tenements.The big road haulage trucks with two or three trailers in the Pilbara cost I believe around 14 to 16 cents per kl per tonne to transport iron ore.

You asked I am just giving an opinion.

Regards
Westcott.