better than sdl: market cap $50m drilling july, page-4

Thanks Fiendship

I am locked and loaded also, doubled up on holdings last week. I hope it does well; that, a big deposit is there.

I am pretty nervous actually because I usually do not invest so much in something that has such a speculative component. Like, this morning, when i woke up, I was thinking: "Why didn't you just plough the cash into PEK?"

(I bought alot of PEK over the last few weeks and could have bought plenty more).

I suppose I am nervous because WGO is so quiet. There is no hype or publicity about it anywhere. It is basically a one man show, that is, William Witham

My nervousness lead me to phone Mike Young yesterday, just to get his opinion about the project. Mike is a geo, pretty grounded, and just said, for geos, nothing is known until it is drilled.

Mike praised William Witham as a geo and also said William's strong point was his relationship with the Congonese locals, including govt and villagers.

Reading Mike's appointment announcement (4 February 2011), it ends: "his appointment is an important part of the evolution of Waratah towards becoming a large scale iron ore producer".

I trust it is OK for me to say Mike said he was originally offered the CEO position in WGO but had to decline due to his BCI commitments.

That Mike was approached as CEO is a good sign about how WGO feel about the project.

I trust Terry Streeter is a shrewd operator. Terry has invested $3.6m of his own cash into the project (average 15 cents each). His holding is not seed capital.

Running thru the history of announcements, hightlights are:

"A metallogenic map of the project area indicates an iron quartz schist of approximately 20km in strike length. The local geology compares favourably with other nearby projects."

"Waratah proposes to partner with Solethu Investments (Solethu) as Solethu has played an important role in securing the project for Waratah. Solethu has a Joint Venture with Grindrod Limited [$800m net assets] in RRL Grindrod developing rail infrastructure on the African Continent."

"A portable XRF device was taken to the field which was able to confirm high-grade iron mineralisation over significant distances"

"one can follow the red haematite for about 1 km along the crest of the itabirite cliff [1950]"

"An estimate of an initial target of 1 - 2 Billion tonnes of DSO haematite grading between 60% and 62% iron based on the observed and/or expected strike, width and depth of mapped high grade iron mineralisation. An estimate of grade was made on the basis of numerous XRF readings taken in the area."

"The magnetic data confirmed the Youkou project site, where historical exploration by French geologists in 1936 discovered a haematite-rich area. The new geophysical data outlines the regional scale structures that seem to control the haematite rich area. Waratah is confident that a significant haematite target has been outlined. The iron appears predominately in a haematite form rather than magnetite as reported at some other Congo projects."

"The aeromagnetic survey has also identified two linear north-northwest trending target zones that will be evaluated in future field expeditions."