It must be to do with Cazaly JV, there is no reason to go into a...

It must be to do with Cazaly JV, there is no reason to go into a TH for a reconstruction of capital announcement.

Consider:

From the GDA announcement on 4/1

Mt Caudan Iron Ore
Cazaly Iron Pty Ltd has advised that a first pass drilling program for iron ore has been completed on this prospect (M77/766) and results should be available later this month. "

Subsequent to this announcement, which contained other updates, HC readers will know that GDA has seen massive volume and price increase that have since retraced a little. GDA's price is still 2-3 times higher than it was prior to this announcement.


I've dropped my GDA and moved my profits into to CAZ. If news is good, I see more upside for CAZ.

Both have market caps of roughly $30mil, but Cazaly's share of the upcoming results is 80% while GDA's is 20%. Theoritically, Cazaly's market cap should move by a factor of 4 to 1 compared with GDA's on price movements following the Cazaly announcement due Monday for either good or bad news.

Here is an extract from CAZ ann. on 24/10/07:


24th October 2007
ASX Release

MT CAUDAN RETURNS HIGH GRADE
IRON SAMPLES UP TO 64% Fe

• Field work commences at Mt Caudan iron Project
• Initial work outlines continuous mineralised zone over 900m
• Rock chip results up to 64% Fe
• Drilling programme planned for November

Cazaly Resources Ltd (ASX:CAZ) entered into an iron ore farm-in agreement with Gondwana
Resources Ltd (ASX:GDA), covering the Parker Range Project. Details of the farm-in agreement
were announced by GDA on 3rd July 2007. Cazaly can earn 80% of the iron ore rights through
the expenditure of $1million over three years. The Parker Range Project lies approximately 15
kilometers south-east of the Marvel Loch town site and approximately 60 kilometres by road
south of the Perth–Kalgoorlie rail. Potential exists for the delineation of a substantial resource of
iron ore.


I believe the results will be good for both company's, however GDA may have already seen its run, while Cazaly has a long way to go.


Just my opinion. DYOR.

Milo.