They send out some geologist or 2 or 3 who puts together his/her findings based on previous data collected and the geology of the tenement.
This is what geologists are paid to do.
It is "conceptual" however.
Based on his knowledge gained by various sources as well as his own training and knowledge, he believes there should be between (x) and (x)mt of iron ore.
Doesn't mean hes right or wrong.....thats what we find out down the track.
The reason they give an amount??......This geologist probably gives his estimates based on his findings.....its up to the company whether to express them in an anns or not.
Im sure if he came up with 5mt they may not have been so open to state it.
They could have come out with...."the geologist thinks there is iron ore present in the area and we will now drill to see how much......and we would all spend the next 9 months trying to work out whether its 10mt or 10,000mt.
I guess either way it doesn't matter......so long as u research yourself as best u can before buying.
The fact FMG have inferred resouces abutting this tenement gives in my view a much higher probablility of iron ore present.
That along with the research i have posted ......especially the drills that were done in 2005 and also FMG's recent results.
FDL
flinders diamonds limited
