get real!, page-2

I took a position a short while ago when everything fell to pieces. Very undervalued.

I will repost what I posted elsewhere:

ASX: GUN Market Cap: ~8 million

Cash: 1.4 million or so (better check this)

*Coburn world class heavy mineral sand field, POSCO (world's 4th largest steel producer) were going to finance capex for 40% equity in the project - bailed out at the last minute due to disappointing zircon prices.

*Received all material approvals for development, produces high quality zircon-rich assemblage.

*Thankfully, DuPont (world's third largest chemical company) have independently upheld their separate off-take agreement with Gunson.

*Coburn is in a very favourable location (see here: http://www.gunson.com.au/files/coburn/coburn_fig01.gif) - easy access to power and water, can utilise existing infrastructure to get products to market via North West Coastal Highway running to the Port of Geraldton.

*Mt Gunson project, where company takes its name (I'm assuming), farm-in partnership with Noranda Pacific Pty Limited, part of the Xstrata Copper Business Unit.

*Fowler's Bay Nickel Project, similar in many
respects to the Fraser Range belt in Western Australia, geologist has commented on parallels to Nova/SIR. Undrilled at the moment while they focus on their flagship mineral sands project.

*Investors Mutual Limited, 4 billion dollar fund, has been buying up big after the share price collapse from 52 week high of 20 cents. Read more here: http://www.iml.com.au/IML/main/index.php

*Board has initiated a Strategic Review of the
Company after Koreans bailed, which will seek to attract new strategic shareholders (I'm thinking Russians or Chinese outfits) - this report will be completed and released by the end of April this month - I expect the market will re-rate upon a affirmation of its true valuation, similar to the Cockatoo Coal rebound.

*Board contains veterans from Woodside Petroleum, Moly Mines, Gindalbie as well as Ron Chamberlain from Iluka handling the mineral sands financing.