I agree that investors are very much focussed on the Andewa...

I agree that investors are very much focussed on the Andewa exploration right now, so not many care much about Tassie, but the FNT directors do and for a good reason.

FNT is first and foremost an exploration company. Its what they excell at. Having acreage only in PNG even with outstanding pedigree is risky. Peter still probably remembers the disappointment with the Kodu deposit fiasco where it was deemed to be too close to the Kokoda track. That was purely bad luck, but PNG is never easy. Its seasons are severe so exploration comes to a halt for about 1/2 of the year. Government is stable now, but that can change quickly. Its had its fair share of natural disasters, but the good part about FNT is that they have lots of experience and contacts in the country. The most important part is that the exploration so far is showing signs of big discoveries there. Peter also has derisked FNT's exploration somewhat by a hugely value adding partnership with OK Tedi who will do a massive amount of exploration on excellent ground for the benefit of FNT.

So why are FNT bothering with Tasmania? I think it comes to risk management and the fact that FNT is still an exploration company. They need acreage and preferably not all in the same country. They need it where they have experts on the ground and preferably in a world class metallogenic province. Its also very wise for an exploration company to have a commodity diversification strategy. They also need a place which can be explored during periods when its impossible in PNG. Tasmania fits the bill perfectly.

My understanding is that Graham Fish one of FNT's directors resides in Tasmania, and much of the work there falls under his direction. Many may say that there are too many tree huggers there and its hard work to get permission to do much. Many don't realise what a bouyant culture Tasmania has in its mining industry. It really doesn't deserve to be as underated as it is. The Wart Hill deposit may end being a huge asset for FNT. Its very interesting that relatively recently the Henty gold mine started operating and still does in the same Mt Read volcanics that the Wart Hill deposit is on. The area surrounding the Henty is very sensitive, but it was approved because of good management practices.

The Tasmanian govt needs a healthy mining industry and even more the money that it produces for the state. As far as I'm concerned, if the govt allows exploration drilling at a site like Wart Hill, there's always ways and means to go to the next stage, and thats all an exploration company needs.

Regarding the SP going down 0.5c on the day of the announcement, yes I'd agree that not many new buyers on the back of the Tassie news, but it seems everyone is hungry and some getting a little impatient for news on Andewa on a very cautious and negative general market. I'm expecting news this week on the drilling startup, but we could also be in for good news from OK Tedi and the Tasmanian drill results.

Ari