ok, here it is then :P Key PointsCurrently drilling to upgrade...

ok, here it is then :P

Key Points
Currently drilling to upgrade resource from current 54mt to a target 100mt
Mining agreement currently in negotiation with Native Title owners, Heritage and Exploration agreement previously secured.
Resource upgrades to be reported throughout 2010 drilling program.

Based on an initial meeting with management and preliminary review of historical releases the question I have on this stock is; why has it been flying below the radar when its peers have been prospering from the recent price hikes in iron ore?
With an extensive drilling program in progress, known mineralisation and possible infrastructure savings this early stage iron ore play is an opportunity missed by the market.


Possible reasons behind the story not gaining market recognition could include;
The initial resource released was relatively small at 13mt then upgraded to 54mt at a relatively low grade (49% Fe). The current drilling program is targeting a 100-130mt resource with a higher grade component.
This initial resource was based on 6 broadly spaced drill holes and was diluted by inclusion of low grade material.
Limited promotion of the stock in mainstream media, support from institutions has been strong but limited retail support appears to be an issue.
The time frame to development is 3 years. This is a realistic time frame given the regularity processes required and the current level of project development.

Value Adding Activities

The company has been drilling through the wet season with one drill rig and as soon as the weather clears will be mobilising a second rig to the site.
The drilling rate has been slow due to cyclones halting work and the method of drilling being used.
Environmental and site conditions necessitate helicopter transported diamond drill rigs be used, which result in a slower rate than conventional truck mounted RC drilling.
On the positive front by undertaking the drilling this way PLV is proving their credentials as best practice operators in respect to environmental constraints, which will help with seeking the required ongoing approvals. Also the geological and geotechnical information gained from diamond drilling is greater than RC drilling, so whilst slower initially it will assist down the track in the feasibility study process.

News Flow and Proposed Project Timeline

Present ? October 2010 Ongoing drilling program
Throughout 2010 Resource upgrades
Throughout 2010 Environmental monitoring and compilation of EPA submission
Mid 2010 Settling of terms for the Mining Agreement with the Native Title holders.
Late 1Q ?11 Submit EPA approval
Late 1Q ?11 Complete PFS
4Q ?11 Complete BFS
Construction 2012-early 2013
First production Early 2013

Risks and De-Risking Process

Given the early stage of the project it is fair to apply a risk weighting to the project and the company. Key milestones are:
1. Complete environmental studies and get sign off from the EPA. This is one of the key risks with the project. The time taken for the EPA to assess the submission is an unknown variable outside of the company?s control.
2. Increase the resource and also improve resource definition. The target of 100mt should be easily reached.
3. Reach agreement with Native Title Claimants on a Mining Agreement, a Heritage and Exploration agreement was reached earlier and has enabled exploration to be undertaken. The next step is to settle on the terms of compensation.

Financials

Cash $16.8m (31/12/09)
Last raised $23m (SPP & placement in Oct/Nov 09, @ $0.40)
$5m spent on acquiring outstanding 50% of project

Previous analyst valuations by Austock were $0.86/share risked, and $2.04/share unrisked