FWL has become essentially a 2 horse bet. First bet is the DSO. The Chinese obviously agree that there could be haematite there, so they've put up the money for the drilling. We should no the result by about this time next year.
Second bet is Oakajee. If Oakajee goes ahead, Yogi is likely to be one of the most economically viable projects in the region given proximity to port and existing infrastructure.
I dont think it's a coincidence that the agree with Taifeng was finalised on the same weekend that Premier Barnett was in China unofficially opening the door for Chinese investment in Oakajee. Oakajee will go ahead. The question is when. It might be up to 12 months before any Chinese interests make a commitment to its development.
Current Oakajee plans are too expensive. FWL could very fit into new plans. The point is that FWL didn't have the resource when initial plans for Oakajee were made. Now they have.
There is a list of projects whose development is contingent on Oakajee. With a market cap of <$10m, FWL would have to be the cheapest bet.
LCG Price at posting:
5.8¢ Sentiment: Hold Disclosure: Held
