GDA can earn a 20% interest in any iron ore from Mt Caudin.They...

GDA can earn a 20% interest in any iron ore from Mt Caudin.

They are however free carried until end of feasibility stage and will need to chip in some cash at some stage if production ever eventuates...which wouldn't be likely until say 2010.


8 samples back in November
results greater than 60% FE....thats not bad at all

Cazaly iron will have drill results from this target due by the end of this month.....tenement m77/766

Ok quick calculation

Past hits and studies show iron deposits anywhere from 5mt to 30mt......this could be more or less

So i will use 50%..... or 15mt

15mt @ $40mt after costs

= $600million

GDA 20% = $120 mill over say 5 years at 3mt year

= $24 mill year

current MCAP is about $30 mill.

I would say MC should be closer to $60mill if results indicate a resource of around 15mt

or roughly 10c a share

this does not allow for incoming option money
(cash for the company coffers)
will come in over the next few weeks

they also have Park Range with results due by the end of this month on 50% of over 11,000 samples taken for their gold project.

Then they have the Wallal Downs - Pilbara project which u can read about from latest announcements.

However one must allow for the consolidation and perhaps share price dilution with 1 for 8 shares offered and free attaching options.

Due to option money coming in and 1 for 8 I would allow 10% dilution so I have set a target price on shares as
8cents per share.

based on the ironore results only.

this is based on a find of 15mt......the SP could be higher or lower than this based on results re: iron ore and the gold from Park Range.....


cheers