untradable forever, page-58

A few points on the announcement the other day.

1. Magnetite rich granites. So granite is an intrusive igneous rock. This means that it cools slowly in hot magmatic conditions. Over this cooling period, the hydrothermal fluids in the magma decrease in temperature along with the granite. Quite often the hydrothermal fluids will contain minerals such as magnetite because the source rock of the oxidised material is in the vacinity of the cooling magma. What does this all mean? Well magnetite rich granites are very common. Problem is, the grade is either far too low, or the occurance doesn't extend along an economical distance.

2. Coal bed. They would have mentioned the thickness if it was of any interest. Thin can mean anything, but judging by their avoidance of mentioning a specific width, it is fair to say that the seam/bed would be less than 1m in width in my opinion. Definately not economical. If it was important, they would have said the width. Besides, coal is simply an organic compound that has been weathered and compressed over many millions of years. You will probably find that most drill programs in Australia will trip across a little bit of coal, even if they are indeed looking for something completely different like Copper for example.

Long story short: I wouldn't hold any hopes for the coal and granite. They have sent the drill cores off for assaying simply so they can complete their final reporting in my opinion.

Dissapointing, but that's the risk you take with stocks like these.

Better to forgive and forget instead of holding out hoping.