And one more nail driven into the coffin by one of our own...

And one more nail driven into the coffin by one of our own newsletters...




The Iron Boom Begins Again
Friday, 3 October 2008 - Melbourne Australia

By Al Robinson



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The last time we talked about the iron junior market was in the first half of the year. Since then, most of the best quality reserves have been bought out. China's playing for keeps now. Midwest (ASX:MIS) went for a 53% premium. Portman (ASX:PMM) got a 19% better offer three weeks ago.

But there are still good reserves out there.

In fact, most of the iron plays out side of Fortescue (ASX:FMG), Rio Tinto (ASX:RIO) and BHP (ASX:BHP) are now back to pre-boom levels.

Guess what? You get to start from the ground floor again. So here's a quick money-map of the iron sector. There are three to look at this month, for three different reasons.

For sheer volume overall Gindalbie (ASX:GBG) wins. It simply has more iron. The company is sitting on a bunch of scattered tenements. The best is the Karara reserve, with over 500 million tones of economically mine-able iron.

A little more organized is Mount Gibson (ASX:MGX). It's the latest fending off takeover rumours. The company's producing - but it's finding more iron than its digging up. According its last reserve statement from last month it added another 2 million tonnes of iron to its reserves.

Atlas Iron (ASX:AGO) just upgraded its indicated resource by 756 million tonnes yesterday. That's not necessarily all money in the bank. It's just a huge upgrade in a market that doesn't care at the moment.

Kris Sayce has an over-sold, under-loved favourite iron play too. He just told his premium small-cap readers about it.

By the way, here are two to avoid: Strike Resources (ASX:SRK) and Territory Resources (ASX:TTY). They've both had recent troubles with loans or financing. In this credit (and equity) market, that's not worth the risk for retail investors. Juniors need financing.