FinanceFlinders lures day traders again Kevin Andrusiak 340...

Finance
Flinders lures day traders again
Kevin Andrusiak
340 words
21 February 2008
The Australian
1 - All-round Country
29
English
Copyright 2008 News Ltd. All Rights Reserved

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DAY traders are again piling into junior iron ore hopeful Flinders Diamonds after the company took time out again yesterday to remind the market that it might be sitting on millions of tonnes of iron ore.

Nearly 90 million shares in the Adelaide-based company changed hands yesterday as the company reiterated that its Pilbara tenement was positioned between those of Rio Tinto and Fortescue Metals.

When previously announced to the market, it saw investors push the Flinders share price more than 30 per cent higher, where it has mostly stayed, despite the downturn in the equities market.

Both Rio and Fortescue have announced recently that their landholdings in the region contained millions of tonnes of iron ore ahead of an expected generous price rise for the in-demand commodity.

Flinders, which was a generally unsuccessful diamond explorer without much market attention before it alerted investors to its iron ore potential, added that it had new technical evidence to suggest that the mineralisation reported by Rio and Fortescue extended to its tenement.

``The new discoveries are major channel iron deposits and, as we are located between them, they quite clearly now enhance the prospectivity of our target drilling zone,'' Flinders boss Kevin Wills said.

``In some areas, the mineralised channels of iron ore do extend into our property.''

Flinders is expected to begin a drill program soon at its Hamersley project -- a tenement it picked up in 2003 hoping it was prospective for diamonds -- and is targeting a resource of between 325 million and 390 million tonnes.

The company already has a joint venture relationship with Fortescue at another tenement in the same area.

``We have been discussing our drilling requirements with several contractors and it is anticipated a four to six month contract will be let for the job,'' Dr Wills said.

Flinders shares rose nearly 9percent yesterday to buck the trend of the falling share market.

They added 1c to close at 12.5c.

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