I do like the look of FRS, have been watching it closely along...

I do like the look of FRS, have been watching it closely along with two others and feel timing here is the key, other holders care to comment please??



EMERGING East Pilbara iron ore hopeful FerrAus has added its name to the growing list of juniors targeting consolidation in the sector to unlock infrastructure and provide an alternative source for China.

The South Australian-based explorer announced yesterday it was restarting iron ore exploration, adding that its objective was to promote the consolidation of the junior sector in the Eastern Pilbara.

Its shares received a boost on the back of the news, jumping 4.44 per cent to 47c.
FerrAus chairman John Nvylt agreed further consolidation in the sector was needed to create a sufficient resource base to underwrite the construction of connecting infrastructure.

"That infrastructure, which would be rail, could logically connect to one of the existing rail lines in the region," he said.

Mr Nvylt said the cost of a rail build could be around $500m, which would require a resource of more than 500million tonnes to support that expenditure.

"Working together is a faster way to target that tonnage," he said.

FerrAus would not confirm if it was in talks with any other players in the region, but said a "move in that direction was under way".

Industry speculation has suggested that the iron ore explorer could be the next to make an announcement regarding consolidation. But rumours vary, and include a suggestion that FerrAus could either be taken out by a bigger player such as Fortescue Metals Group or Atlas Iron, or could itself target a rival junior.

It is understood that FerrAus was interested in Hannans Reward's iron ore assets before it locked itself into a deal with Warwick.

Pilbara majors BHP Billiton and Rio Tinto, which announced a massive $US116billion ($145.2bn) merger of their West Australian iron ore operations earlier this month, have control of most of the infrastructure in the Pilbara. Following the merger announcement, the juniors have intensified discussions on how they can benefit from the new joint venture by consolidating and entering negotiations with the major players to access infrastructure.

FerrAus said yesterday it was restarting regional exploration to evaluate targets to boost its resource inventory.

Mr Nvylt added that it was the perfect time to accelerate exploration, following renewed interest in the sector after BHP and Rio's proposed merger.

"We sense that there has been a change in the market, not just financially, but the game has changed following the proposed joint venture between Rio and BHP," he said. "We see more interest from steel mill end users seeking to diversify supply."

Also on FRS website there is a very good broker report that potential holders should read, just my own thoughts only.
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Hold GGG..GDN..PRE

Watching FRS..III..FAR )