estimates and the next announcment

From the April quarterly, the following estimates are relavant to the current share value and resource discussions. The 8m depth of exposed iron-ore is significant in identifying confidence of the resource estimates. For relevance see the quarterly report. Rumours of jv's, buy outs and and possible share swaps will be clearer once the samples and then drilling reveal the reality in terms of the value per share. I am confident Kev Wills estimates of target resource are conservative for both Flinders and Maximus.
The announcement on the secondary outcrops is expected to arrive at the asx tomorrow or some time next week. Let's cross our fingers for a good nudge for the share price with the news.

From the most recent review announcment 30 april 08....

"Bedrock in the area consists almost
entirely of the Brockman Iron Formation
which is thought to increase the
chances high grades due to low levels
of dilution by other rock types in the
secondary iron deposits. Also, very
little of the CID actually outcrops in
E47/882. This is taken to be a good
sign as the bulk of the channel deposits
are therefore likely to be preserved
below the cover.
The detrital iron deposits (DID)
represent old slope deposits on the
sides of the Tertiary paleo-valleys.
Outcrops of DID are much better that
those of CID. In most valleys, small
wedges of DID can be found forming
triangular areas or ramps dipping
towards the main valley. The ramps
may be up to 20 metres thick and thin
upslope to zero.
The channel iron deposits (CID) are up
to six kilometres long and 1 to 2 km
wide in E47/882. Dr Russell thinks
that it is likely that CID underlies most
of the flat-floored valleys in the licence
area. This represents a considerable
target of high grade iron ore. However,
the CID is under cover which may be
up to 50 metres thick and in places
will be below the water table. This may
present some challenges for mining.
Secondary Iron deposits located
During his mapping Dr Russell located
19 outcrops of mostly DID (16)
with some CID (3). The samples are
considered to be typical of the main
secondary iron ore types in the licence
and cover all the main outcropping
deposits. The samples have been sent
to the laboratory for iron ore analysis
but it must be emphasised that they
do not represent a systematic sampling
exercise. Results are expected in about
two weeks."

and from the quarterly of the same date....


"Drainage Area Target
Estimates
E47/882 has been divided into
five major drainage catchments or
parts of catchments (Areas A to E,
Figure 5). Only the channels with flat
floors, thought likely to be underlain
by CID, were selected.
The target volume of CID in each
catchment has been calculated from
the thickness estimate and the area
of the prospective zone. The estimate
of tonnage is made by multiplying
the volume by a specific gravity of 3.2
(for the upper estimate) or 2.8 (for
the lower estimate).
In each of the drainage areas A to
E, the area likely to be occupied by
Kanga (DID) and CID is estimated.
A possible thickness is provided
in the Table based on the shape
of the valleys. From these values,
a volume of Kanga (DID) and CID
can be calculated. The tonnage is
obtained by multiplying the volumes
by the specific gravity (SG.) of the
material. In reality, the SG can vary
considerably. Tonnages based on an
SG of 3.2 and 2.8 are used to provide
an ‘upper’ and ‘lower’ estimate.
Further exploration is planned
before this target can be defined
as a resource. In the meantime it is
possible that the resource will end
up larger, smaller or there may be no
resource at all after further drilling."