Why the market has not caught onto POL's look-a-like targets?
Polaris have 2 targets, right next to FMG's billion tonne resource and 700mt solomon resource (see maps below), and FDL's target.
Independantly reviewed (by Dr Ricchard Russel, the same guy that did FDL's) to contain 250-310mt of DSO CID.
Here is what was written in POL's January "pilbara update"....note no big flash heading or hoo haa.
"Weelumurra and Caliwinga Prospects
The Company wishes to inform the market that it has received an independent specialist interpretation of Landsat imagery suggesting large-scale Channel Iron Deposit (CID) target potential (200–250Mt) and additional Canga iron target potential (50–60Mt) at the Weelumurra and Caliwinga Prospects.
The two prospects are 170-185km south-east of Dampier and in close proximity to Fortescue Metals Group’s Solomon East prospect (stated to have an inferred resource of 700Mt of iron ore at 56% Fe) and Serenity Prospect (stated to be a billion tonne deposit at 56% Fe).
The Landsat imagery interpretation follows the announcement by Polaris in November 2007 of the location of a CID at Caliwinga visually estimated to be up to 25m thick, with assays up to 58.8% Fe and low in silica, alumina and phosphorus, and the identification of canga and detrital iron deposits at Weelumurra with assays up to 64% Fe.
The interpretation and assessment of target potential was undertaken by Dr Richard Russell, who was engaged by Polaris following the highly encouraging helicopter reconnaissance and sampling results referred to in the November 2007 announcement, and in light of the proximity of the prospects to large inferred resources.
Dr Russell has carried out field assignments in the region over the last three years and is familiar with the geology and geomorphology of the area. Using a method of estimating the area likely to be occupied by CID and Canga in each of the Polaris tenements, possible thicknesses based on FMG’s drilling results and the shape of similar valleys in the Polaris tenements, he calculated the potential ore volumes.
Target tonnage potential for the areas was then assessed by multiplying the volume estimates by a range of specific gravities (SG) for the expected sub-surface materials, 2.6 providing a ‘lower’ estimate and 3.2 providing an ‘upper’ estimate.
Granting of the Caliwinga Creek and Weelumurra Creek tenements to Polaris is now being finalised. When granted, the Company, having established the potential of the areas for iron ore, will then obtain Ministerial approval to explore for iron ore, and commence a more thorough assessment of potential deposits in the tenements."
Yes that rail going though POL tenement is Rio's.
Now POL also a JORC resource of 30mt @ 58% fe next to Portman in the yilgarn, with accees to public rail 50km away, and access to Portman road haulage. Bankable feas. is set to start on this project in july, production 2010.
Polaris also the 59mt @ 58%fe Bulganbin deposit proved up in the 60's by BHP (again, approx 50km from public rail)
Polaris has malaysian steel company as 19% holders.
Polaris has ~$14mill in cash.
POL has a market cap of about $80m.
FDL has market cap of $300mill.
If everyone thinks FDL is great value, why are they not buying POL at a fraction of the price with an almost identicle target/location plus further existing jorced up resources and bankable feasibilty study commencement a month away?
If you like FDL's targets, just wait until POL really let their's out of the bag.
