Venus Metals also drilled for haematite near Yalgoo last year. The results were so poor that, as far as I'm aware, they didn't bother announcing the results. They did however strike magnetite. They've now got an inferred 443.9m tonne resource and a market cap of $62m (compared to $12m for FWL with 572 inferred). Shows just how undervalued FWL is.
I think that the rationale for the current drill program targeting magnetite at "Tweety" is to ensure that it's not more attractive than "Sam". "Sam" is currently the preferred deposit for the Yalgoo Project, with 460mt inferred resource at a very economic strip ratio. They'll want to start diamond drilling at "Sam" soon to convert it to a measured resource as part of the definitive feasibility study. They'll want to discount "Tweety" as an option before they spend more money on "Sam".
I don't believe that this drill program is an attempt to arbitrarily increase their resource base and bolster the sp to enhance their negotiation position.
I think that it's a very good indication of their level of confidence in their negotiations that they are effectively engaged in a drill program aimed at contributing to the feasibility study.
LCG Price at posting:
13.5¢ Sentiment: Hold Disclosure: Held
