take over, page-17

bendo, none of that has any bearing on ADY's assets in Chile.

And on that note, I think WISCO declined to invest in ADY because although they had a truckload of 15% Fe rock, they didn't have a scoping study in place, or a mine plan, or anything.

Face facts guys, ADY was poorly run, and Vallenar iron was poorly run. Without a scoping study, you can get involved in a mining venture which is destined to lose money. You need a resource before you can do a mine plan, and ADY didn't have that when they started buying up Vallenar in 2007. They naffed around a whole year (2006) getting drilling done, and took nearly another year to figure out their Fe resource, and had no idea of the capital expenditures, operating costs, or even how they were going to get their ore from the pit to the port.

It was a similar story over at MON, who did their mining on Inferred Resources versus a Reserve. They went ahead with mining before they could prove the viability of the project, and this meant they took on a lot of risk in terms of their operations. It bit them in the backside, ust like at ADY.

ADY was doing Rincon the right way, except they seemed to think they could get out of the feasibility rocess cheaply. Other comparable deposits have Capex in the billions. This figure was never mentioned. If ADY had used its 20-60c share price to issue large slugs of equity they could have raised the cash to finance a real study at Vallenar and at Rincon. Sadly, like most other companies, dilution of director's stakes takes precendence over getting the venture funded first and foremost.