estimated 5million tonnes by 2012, page-22

hrrrmmm... I'll just quickly provide a rebuttal to your numbers PVF,

the saleable product from the PonteVerde project will average US$55/t (based on 40% coasrse sinter feed/ 60% small lumps), production costs are estimated at about US$20/t, ongoing capital costs of US$16/t without incorporating startup capital costs... so we're only looking at about gross margins of about US$19/t once production kicks off and after a sizeable initial capital outlay.

If I remember right, their plant will operate at 1.8mtpa, assuming that LGA production from October is representative for the deposit, then we're looking at 1mtpa saleable product. Or, about US$19million gross profit per year. And I'd consider that an optimistic figure, since the LGA samples were graded at 52% when the deposit has conceptual target grades of between 33-41% Fe.

The ownership issue seems a tad complicated to me. The deposit was procured for US$12 million by SAFM Brazil in early 2007(of which only about half has been paid for to the original owners to date, and I guess that's another issue to be aware of). SAFM holdings had approx. US$21.5 million in paid up share capital, of which US$10.5 million was diverted to SAFM brazil, prior to the buyout by RVE. RVE issued 84 million SFZ shares (plus 252 million performance shares) as consideration for the iron ore project owned by SAFM Brazil. Or put another way, 84 million SFZ shares were exchanged for a US$10.5million company, that would value each SFZ share as part of the transaction at US12.5 cents. IMO it's a bit smelly, and looks more like a bailout for the SAFM holdings/brazil owners more than anything else; and I'd be looking hard at the integrity of the company managers.

And I guess this small bit from the prospectus compicates it even further, "It is also noted that there is a dispute between the previous owner of the Mining Permit and a third party as to ownership of the surface rights over a 32 hectare area within the 150 hectare Mining Permit. Depending on the outcome of this dispute, SAFM Brazil may
be required to pay the owner of the surface rights a royalty of 1% of net revenue from the sale of iron ore produced from the disputed area. Despite the existence of this dispute, SAFM Brazil is entitled to exploit the deposit under the Mining Permit without hindrance."