Reconstructed from my contributions in another thread whose title may not be relevant:
The big plus here is the market cap. quite low before the announcement, and I guess not too many people knew of it upfront.
The railway is a HUGE positive compared to many other Fe juniors.
We will only know the prospectivity of the areas once we get a detailed report, and do some drilling, but it is encouraging that there is 'deep weathering' :
"Enrichment of iron occurs within deeply weathered iron-rich metamorphic rocks, that have been termed �Chapeau de Fer� Or hats of iron. A Chapeau de fer is a surface area consisting of an exposed and oxidized metal deposit. In the field it looks more or less like a honeycomb consisting of yellowish to reddish brown colours. The hat is rich in iron oxides and hydroxides formed by weathering. The primary iron minerals are haematite and limonite."
Subject to further details being released, a $1 share price is achievable in the short term, IMO.
Also, I am all for development in Africa where it is needed.
DMM's ann reads very similarly to SDL's initial announcement of 12 Jul 2006 14:09.
From SDL:
"Exploration conducted by the United Nations Development Fund and the Canadian International Development Agency between 1976 to 1984, and evaluated by reputable organisations including Bureau de Recherche Geologique et Minieres BRGM (France) and Paterson Grant Watson Ltd, Consulting Geophysicists (Canada), estimated the project to contain an initial Inferred Resource of 570 million tonnes of iron ore grading above 60% Fe. Sundance confirms this data has been reviewed and that as a consequence of this review, Sundance it is satisfied with its accuracy."
From DMM today:
"Much of the early geological information for the area was obtained from a UN sponsored program carried out in the Mayoko- Mount Lekoumou during 1974-75 by the GEOMIN staff from Bucharest Romania. PREVIOUS EXPLORATION WITH THE MAYOKO LICENSE Over 40 drill holes, assays and chemical analysis was carried out by I.C.E.S Geomin Bucharest (�ICES�) during 1974 and 1975. Further exploration work has been carried out by French company Bureau De Recherches Geologique et Minieres (�BRGM�) during the 1980�s. "
.. So we can see from that that BRGM was involved in the resource studies of both SDL and DMM's projects.
So if you call into question DMM's targets, surely you must call into question SDL's targets?
And DMM has a railway within 30km, whereas SDL has diddly in that regard.
So SDL 1.5 years ago looked similar to DMM in my opinion.
-> IF <- the deal goes through then comparisons below:
SDL today:
Cap: 934 Cash: 76 Options: 120@10c
90% Target 1bt Fe with Maybe 200mt high grade @ 60% Fe. 2 billion Capex. Eg 41m@63% Fe.
Please check these figures yourself, as my data is always slightly out of date. Do your own research - This is a VERY HIGH risk speculative investment.
DMM Price at posting:
0.0¢ Sentiment: Hold Disclosure: Held
(20min delay)