wake up people!, page-3

The average EV to JORC DSO depends on the stage of the company. On my watch list of 17 IO companies the average EV to JORC is $8.73, however, some of those have large Magnetite deposits also. Of the 10 or most junior explorers with a JORC the average is just over $1.50 a ton.

I actually have GIR at $1.22 a ton Hematite (EV $162m / 132m tons), but I do not think all of that is DSO grade (57% +). (Anthiby and McFee Ck are about 53%)

In the presentation GIR conveniently provide the recent takeover valuations for DSO operations:

Sinosteel/MIS $1.3billion 172Mt $7.56/tonne
Lion/MIN/Polaris $143million 42.6Mt $3.36/tonne
BHPBilliton/UMC $204million 158Mt $1.29/tonne
Atlas/Warwick $82million 26.4Mt $3.10/tonne

If GIR had all their DSO tons in one location close to infrastructure then I'd be happy to rate them much higher that $1.22 a ton, but I can't just yet.

The upside I think is from exploration success. Just about all of their deposits are open, or expanding. They are absolutely sure to expand their DSO holdings imo. How much is a pluck though.

The summary of their current projects they provide make them look like one of the most prospective IO explorers out there.

Western Creek (100%) Mar’09: 29% increase in JORC resource to 52.4 million tonnes (‘Mt’) next to BHP Newman railhead.

Anthiby Well (100%) Mar’09: maiden JORC resource; 37.6 Mt, 220km to Onslow port.

Yerecoin (100%) Mar’09: first drilling, Exploration Target; 200-250Mt, Scoping Study in progress, existing rail within 1km.

Beebyn (100%) Aug-Sept’09: best drilling results to date; 28m @ 59.1% Fe at Beebynganna Hills, 3rd party rail proposed to ‘doorstep’.

Mt Webber-Daltons JV (75%) Aug-Sept’09: first drilling, discovery-first JORC resource; 40Mt, low alumina, trucking distance to Port Hedland. Scoping Study in progress.

McPhee Ck (100%) Sept’09: first drilling, discovery; 90m @ 58.6%Fe at main range, resource drill out for initial JORC resource by end 2009. 220km to Port Hedland.

Earaheedy (100%) Nov’09: 120 hole drilling program, results to come.