hidden iron ore potential

RSL is turning out to be a real surprise packet for me, the deeper you look into it the better it becomes.

what initially got me interested was that Ian Scott the former Chief Geologist/Mine Manager for Olympic Dam was recently appointed CEO, you must ask yourself why someone with so much industry credability/knowledge would end up at a spec play like RSL, when he could name his price at any of the major mining companies, it is obvious that he knows more about the RSL exploration tennements than the average investor.

then when you look at the uranium exploration potential they have tennements in all the prospective location in

-Malawi(south of Paladin's upcoming uranium mine)
-Northern Territory (right in the hear of the action)
-Western Australia (in a very prospective region)

but what really caught my attention when I dug a little deeper was the really exciting iron ore potential, for anyone that knows anything thing about TTY and their Frances Creek operation (FE 63.8%), RSL holds significant land in and around the currently operating iron ore mine, that has previously shown high grade FE grades.

With plenty of infrastructure around this location once RSL starts exploration early in the new year expect them to surprise the market with news of iron ore prospectivity on their leases and we know how the market reacts to unexpected iron ore news, just look at FDL,GNL,MDX,NSL etc, plenty of money on offer here for the smart investor.

now a closer look at RSL prospective iron ore tennements


Hayes Creek South

The area is a significantly under explored polymetallic target centred on the Hayes Creek fault and possible related splay structures forming structural corridors. In 1969 an iron rich bed was traced over 9.65 km

-Undrilled structural corridor on Hayes Creek Fault
-Iron-carrying breccia zones exposed over several hundred metres
-Exposed cliff of massive haematite
-Rock chips up to 57.3% Fe and 37.1% Mg, with up to 15 g/t Au
-Possible uranium


Marrakai

-In Rum Jungle Uranium Field
-Previous exploration for uranium, gold, base metals
-Iron expressions at surface and possible Frances Creek type structure

These two iron ore targets highlight the potential iron ore related upside for RSL, Hayes Creek South with a 9.65km strike with grades already discovered up to 57.3% Fe, and Marrakai a possible Frances Creek target (remember TTY is a $300 million market cap company)

The market doesn't even realise about the iron ore potential that RSL leases contain, and hence has ascribed no value to it. Infact RSL is already trading at a discount to its Malawi Uranium peers (see AGM presentation)

With a quality management, highlightly by the credability brought by Ian Scott, RSL is definately in the very early stages of a significant share price re-rating and in the short term will be driven by the awarding of the Malawi Uranium Tennements and news of the commencement of exploration.

RSL is certainly one to keep an eye, its not everyday a spec exploration company can compile such significant exploration targets and such a quality management all bundled up at a tiny market cap of $10 million, RSL has the feel of a company on the rise and once the broader market starts to catch on, it maybe re-rated significantly higher.