nsl summary

A brief summary for those that are not up to speed with NSL’s current activities. My apologies for repeating info to regular readers. I expect this post is a lot clearer and more concise for all readers -

NSL director, Fladi, said it was 'unlikely' that the geologist report would be released this week.

We know that following NSL’s Joint Venture agreement with AustInd being declared unconditional, NSL will spend up to $400k on JV expenditure in order to earn a 25% interest in AustInd's project.

Following completion of the Stage 1 Exploration Program, NSL will then have an option to acquire 100% of Austind (the party with the rights to the Project).

Stage 1 is valid up to December 2008. It comprises of data compilation, reconnaissance field work, sampling and assay with a view to identifying an Exploration Potential (allowed by JORC and independently verified) of at least 200MT of iron ore @ Fe 60% (or equivalent thereof).

In my earlier conversation today with Faldi, NSL director, I posed the question on when he personally thought the independent geologist report would be released to the market. His opinion was hopefully by end of March.

However, a lot more has to happen before we see the report. Faldi mentioned the following :

1. AustInd are in London speaking to potential funders. AustInd are expected to return from London by next week.
2. NSL are to have a JV committee meeting with AustInd shortly. (One must assume that the geologist report will be part of the agenda).
3. Approx another further 80 samples of rock chips are being assay graded.
4. Easter holiday will naturally add to time delay.

There is no guarantee that we will see the report in March, however, we know that the necessary data to complete the report to meet JORC Code requirements is definitely under way.

AustInd’s current interests include :

1. Iron Ore Hill - Joint Venture with NSL Health who are contributing the $0.4 million to earn a 25% interest for the first phase of exploration;

2. Kerala Regional - Pursuing land access agreements to up to six potential prospects identified through geological data reviews in the Kerala region outside the area defined for the Iron Ore Hill joint venture;

3. Karnataka and Goa - Pursuing the evaluation and securing of option agreements over 2 additional major Iron Ore resources one in each State of Karnataka and Goa.

I know this sounds clichéd but Faldi did say he was ‘quietly confident’ regarding the potential resource they were looking at in Kerala. Being the largest shareholder, you would obviously be upbeat and positive about the potential of the project.

He appeared upbeat due to the extent of interests AustInd was involved with. Even though he said he was 'quietly confident' it was conveyed that if the Iron Ore Hill project was lower than NSL's expectations, NSL have the option to withdraw. NSL would then be in the position to consider AustInd's other interests - Regional Kerala, Goa and Karnataka.

Once we see the report hopefully Faldi's exact same sentiment will filter through to the ASX NSL buyers.

Good luck to all holders.