d & c counter offer by 2/10, page-18

South America is considerably underexplored at present (in comparison to other areas including Africa). I could never understand why companies were going so heavily into Africa and not South America.

If you Google there is quite a lot of information to suggest that this is changing (this morning I read presentations from both PWC and also from Austrade suggesting this - written in May 2012 and Sept 2011 respectively). The focus seems to be shifting to this region. Peru alone is still rated in the top tier of 'friendly' South American countries to do business and ability to explore (a little social unrest aside). According to PWC only 15% of Peru has been explored - and it's still a top producer in many metals.

The pullback in iron ore prices will only help Strike as it will remind companies of the importance to try and progress cheaper cost mining options - Asian countries still want to control more of their supply chain....and where else could they do this and as a bonus for a very cheap ongoing fixed cost base? South America. Hey how about a joint venture with a company that is well run (now) that looks to have good potential (already has about $500m tonnes iron ore with Cuervo)? If Strike can own 100% of AF it will be a very nice move.