eio in the australian

Mining stocks flying under the radar

http://www.theaustralian.com.au/business/mining-energy/mining-stocks-flying-under-the-radar/story-e6frg9ex-1226037959968


Meanwhile, Energio (EIO) is picking up iron ore targets in Kogi state. The market didn?t think much of it last week and the stock has retreated since the announcement, today trading at 3.7c.

The iron ore was explored by the British 50 years ago but they pulled out at about the time of independence. Then, before the collapse of the Soviet Union, the Russians were going to finance a steel industry in Nigeria, but that plant has been lying idle for 20 years or so. There is also an unused railway (built as part of the steel plan) running close enough to Energio?s ground to allow trucking of ore to a siding.

The other problems is getting your hands on a drilling rig in Nigeria.

Well, if the company can overcome the problems of working in Nigeria and someone can get both the steel plant and the railway back into operation and build a steel industry that exports to other countries in West Africa, not to mention proving up the resource, then Energio might have it made. But it?s certainly at the more extreme end of the high risk-high reward scale.