This fall is going to test the nerves! Some things to remember;A...

This fall is going to test the nerves! Some things to remember;

A global exploration target of 3.6Bn - 6.1Bn tonnes of IO, 700m - 1.2Bn of which is DSO. More than half of this exploration target comes from the tenement that already has rail and port access and is currently being drilled. That the infrastructure is already in place is of a huge benefit.

Favourable talks have been held with rail and port operators. We will get access to this infrastructure.

Drilling has well and truly started, and will be ramped up in the June qtr.

The company had $64m in cash as at 31 March 2011, and was planning on spending $2.8m in the June qtr, predominately on exploration/drilling. So, the company is going to have ~$60m in the bank at 30 June 2011 that will be used to ramp up drilling efforts at both tenements, with a view to wanting to be producing in 2013.

The market capitalisation of this company at the moment will prove to be ridiculously small if anything like the exploration targets can be hit. Even if, in a worst case scenario, only half of the exploration targets can be achieved, today's market capitalisation would still be way under the odds. It's whether you have the patience to ride out these troughs and hold until drilling starts providing results, and the company starts talking funding of CAPEX.

Long term the company still looks very good, providing we hit something with the drilling currently taking place.