I rang the company today and spoke to Matt Gauci.I got an answer...

I rang the company today and spoke to Matt Gauci.

I got an answer to my question about the 31.4% grades. Most of you probably know all this but as a newcomer to iron ore stocks I didn't really know the difference between hematite and magnetite.

So now I know that normal grades for magnetite are 30 - 35% so anything within this band is fine in the current environment but compared to hematite it is more costly to mine/process as it needs to be brought up to about 70% Fe. So it seems that as iron ore prices have risen considerably these 30-35% magnetite projects have come into their own.

He was also keen on the uranium and mineral sands at Balladonia and said that all the market attention recently had been on the Mardie iron ore project.

I asked him about ARH and he said that their iron ore project is more advanced and there has been a lot of drilling there over a number of years.

Once epilson gets to this stage (maybe 2 years away, although he did not specifically mention this timeframe) you would think there would a significant re-rating as long as iron ore prices hold up.

I was quite impressed and they seem to have good contacts around the industry which is half the battle with smaller emerging companies.

So it looks like a 3 pronged approach so hopefully the market does not just focus on the iron ore but also the uranium and mineral sands.

IMO it seems to me like this is now an investors stock. It will be interesting to see where the share price is in 12 months after more drilling at Balladonia and by then you would think drilling would have commenced at Mardie and hopefully there will be a few sets of results by then.

As always patience is required.

Flipper