HAR and exploring for iron ore reminds me of that old joke about...

HAR and exploring for iron ore reminds me of that old joke about the Irishman searching around for a lost contact lens:

'Paddy, what would you be looking for? Ah Mick, I am looking for my contact lens. I dropped it over there under that tree. Well, what are yer doin' looking over here for your contact lens? Ah, because the light is lot better over here, I'm sure to find it.'

Iron ore is like that. Not particularly rare stuff. It is all about the infrastructure and the costs of getting the finished product to the customer. So rather than go and find the best iron ore in the world, a 1000 miles from anywhere, it is better to start looking 'where the light is better'. Or in this case, near northern China, and close to existing rail and current operations. And even better, look near where there has already been economic deposits of iron ore found (and paid big $ for!) - 'nearology'.

Perhaps part of the trouble with lower grade iron ore juniors listed on the ASX is that the market is so used to hearing drilling reports of 60+% of hematite from the Pilbara. So the idea that you can mine lower grade ore closer to the customer, and through beneficiation get it to a saleable grade and rail it straight to the customer - well, as logical as that is, we Aussies aren't used to that kind of iron ore company. We like big meaty % grades, even if the only buyers are the Majors who are the gatekeepers to the rail and hence the market.

The first JORC should provide HAR a platform for buying. In the current market, with IO spot prices dropping and shipments beginning to be deferred, the market isn't flocking to an IO junior exploring in a country few Westerners have ever been.

But, I can wait until the message gets out and the tangible resource is booked. Small mcap, high probability of finding an economic ore deposit, and so close to the customers. The business model is robust. The template is there already.

I bought an initial parcel today on the pullback.

Yaq