the bungy report

If I was to describe the latest Railway drilling update in
one word I would say have to say spectacular. I’m
sure that when Prodemas International calculated the 100Mt
in-situ potential target for Railway, they did not take
into account widths reaching 80m and 100m and if they did,
certainly not at the excellent grades we are seeing.

100Mt, or 150Mt for that matter, was always going to be
achievable. The underlying factor which is critical if an
ore body is to meet high tonnage DSO is simply the
proportion of high grade. In addition, typical high grade
Marra Mamba will differ to its younger sister, Brockman,
by a critical factor, that being far lower impurities,
especially phosphorous.

What is noteworthy in Barry's report is the significance
of "The large widths of high grade iron mineralisation
revealed by the recent assays are unusual for Marra Mamba
ore bodies where a more normal average width of some 25m
prevails (eg Marandoo) . Is the folding/fault together
with the probable micro platy hematite unique to
Railway? Much like the perfect storm?

Incidentally, the probability that 100m is the best width is still very low!

Please note that my estimate of 205Mt @ 60.59% Fe (fig 1
below) is not accurate, since the data is biased by the
fact that we are only getting the results of the best
intersections. In addition, the folding characteristics of
the Railway ore body will require far closer drill
spacings in order to establish the true potential tonnage
and grading. Having said that, 150Mt @ +59% Fe is looking good.

Fig 2 is a layout of the drill-out to-date and a
reasonably accurate calculation of the tonnage/grading for
the 6 best intersections. To help put things in
perspective, my estimate of 8.6Mt @ 62.2% Fe, represents
1/40th of the total Railway target area. At $10 per ton,
this area would be the equivalent to adding 57c value to the share price.


Fig 1



Fig 2