The 53.6% Fe JORC resource for McPhee Creek relates to the Crescent Moon mesa. The main game here is not the Crescent Moon mesa, but the 8km long main range to the west. The reported drilling on the main range has been very exciting to date, and the suggestion from the company in the presentation is that they are targeting 100-140 Mt @ 57-60% Fe.
This to me is a huge game changer for GIR.
Depending on how much of this current drilling at McPhee Creek can be converted into a resource at this stage, at the current share price, the EV could again drop to a dollar or below per JORC resource tonne by year's end when the McPhee Creek updated JORC is expected.
Given that they have the option of trucking this ore (and Mt Webber) to Port Headland, GIR seems very modestly valued in my view.
Confirming port access (assuming it happens, of course) should see another re-rating in my view.
GIR Price at posting:
$1.30 Sentiment: Buy Disclosure: Held
