Why would u need a broker report for this? Fairly straight fwd...

Why would u need a broker report for this? Fairly straight fwd fundamentals.

This still has a long way to go b4 someone comes up with a valuation (as they need a JORC estimate), until then traders will b all over this.

The cuurent drill-program covered the southern part of this EPC, ie 32.3 sqkms with density of 1.6 & thk of 5m to give roughly 258 mT resource estimate. This figure will b modelled & fine-tuned by their consultants.

EPC1230 abuts Xstrata's Togara North & there's a rail line from Rolleston to Blackwater. For the first phase of drilling (19 holes as per Feb update), close proximity to infrastruc matters. Furthermore Xstrata-ENEX JV have a MLA70149 to develop TG North open pit which will b catered to by this rail line.

The second batch of holes should b in the northern block, east of Comet township. Once again, the main railway line frm Emerald to Blkwater runs through this. So should NRL find any decent coal intersections to the north, then they can operate 2 small pits in this EPC. Depth isn't an issue, sub 120m is what others r operating here. Problem is the wet season & access tracks.

Need a resource estimate first in the nxt few months & start of second phase of drilling, then this should come on everyone's radar IMO.

For now they r in the land of the heavies, u got Wesfarmers Curragh mine & BMA's Blackwater mine to the east, followed by Aquila's upcoming Washpool oen pit (in 2014) to the NE & Togara North to the south.

All NRL need to do, is keep hitting the coal & do the coal quality analysis. Coking coal is what they need & with CSN value of 8.5 frm some samples, they might b on to it.

Still early days in my view, but locationwise is good. Need more info in days to come.

All the best.