future sp

Below an news article regarding MIS, can any one please help with a future sp price estimate for FDL sp i am thinking around 1.60 once the resource has been proven. It appears MIS is half the size of FDL's potential IO holdings.
29/01/2008 3:09:00 PM.

Midwest Corporation Limited (MIS) has increased its total mineral resource by 16.6% at its flagship DSO project at Weld Range.

The company said the increase of 19 million tonnes (mt) to 133.4 mt results from ongoing resource drilling programmes at the Weld Range DSO Project deposits.

Chief executive officer Bryan Oliver said the company's target of 225 mt would underpin project development and associated rail and port infrastructure.

"These results continue to confirm the basis for Midwest's proposed expansion of hematite iron ore sales through the joint development of the Weld Range DSO Project in conjunction with Sinosteel Corporation," he said.

In December, Midwest received an incomplete, non-binding and conditional proposal from Sinosteel of $5.60 a share, valuing the target at $1.19 billion.

Sinosteel now owns a 18.7% stake in Midwest.

Midwest has scheduled 40,000m of drilling during the remainder of 2008 in TR70/3902H and other tenements at Weld Range, including sections falling within the Hampton Hill JV areas.

The company said that many other substantial prospective iron ore lenses in the Weld Range tenements remain undrilled.

"This is mainly due to a focus on resource development drilling programmes required over the Madoonga and Beebyn deposits ahead of a Pre-feasibility Study due by the end of September 2008," Midwest advised.

Midwest also announced that it had received encouraging preliminary metallurgical test results from its Matthew Ridge Prospect at the Jack Hills DSO Project area.

The firm said that testing was undertaken to determine whether a concentrate quality suitable for blast furnace grade sinter feed and direct reduction grade pellet feed could be produced.

The company said that tests were conducted on selected drill core intervals at a range of target grind sizes from Beneficiable Feed Ore (BFO) located beneath the DSO type ores at Matthew Ridge.

Mr Oliver said the testing of 14 drill core samples produced high quality magnetic concentrates at relatively coarse grind sizes.

"The results from Jack Hills show that commercial products could potentially be produced from the lesser quality BFO type materials using conventional mineral processing technology," Mr Oliver said.

Midwest said it intends to continue RC and diamond core drilling programmes this year on the eight Prospects at the Jack Hills DSO Project.

The drilling programme will take place at areas identified in 2007 as having economic potential to develop into mining operations, with the purpose of upgrading mineral resource estimates and increasing confidence in the level of JORC classification.

Midwest also said it would conduct an accelerated drilling programme at Weld Range, Koolanooka hematite, Koolanooka magnetite, and Robinson Range.

"The successful development of these projects is expected to result in Midwest becoming a leading producer of iron ore in the Mid West region," the company said.

At 1455 AEDT, Midwest was down 26c at $4.78.