GDA 0.00% 10.0¢ gondwana resources limited

a bit more fatty

  1. 1,899 Posts.
    I have taken the opportunity this weekend to check out a bit more about the potential of Gondwana's new Wallal Downs iron-ore tenement in the northern Pilbara.

    I found some very interesting information. I read the latest W.A. Dept of Industry and Resources publication (dec 07) called "Prospect". On page 30 it has a summary of projects under consideration. I was looking for projects in an advanced stage of construction and proven resource in and around the Gondwana new tenement e45/3139 (I?ll refer to it as 3139, as I refer to flinders tenement 882). One of those that I saw some potential comparisons with 3139 is the Atlas Iron Ltd Pardoo Hematite DSO Mine.

    And what did I see?
    From the report.....
    "Atlas Iron is completing a Definitive Feasibility Study on the mining of 1 Mt/a from the Pardoo deposit 75km east of Port Headland. Atlas expects to commence mining at 1 Mt/a in 2008 (subject to government regulatory approvals) before increasing production to 3 Mt/a by 2010. The company intends to truck the ore to the public access berth at Port Headland for export. Expenditure $8.3m ....."

    If you re-read the Gondwana wallal downs news at the start of this thread there are a few important similarities...

    "Regional gravity and magnetic data indicates a significant anomaly extending ENE for 25 km of strike length within the application area (refer to attached figure 1).
    This anomaly may coincide with either a strongly magnetic mafic intrusion similar to the host units at Radio Hill (Fox Resources) with the potential to host nickel, copper and platinum group elements or at Balla Balla (Aurox Resources), with the potential for iron, vanadium and titanium.
    Importantly, anomalism may also relate to a near-surface extension of the Nimingarra banded iron formation, host to haematite iron ore mineralisation at Pardoo (Atlas Iron) and Yarrie/Goldsworthy (BHP). The ground is contiguous with
    Brumby Resources iron targets to the immediate WSW.
    The coastal area is covered by sediments of the Canning Basin and has never been effectively explored before."

    GDA's 3139 is east of the Pardoo deposit of Atlas Iron (AGO).
    I think Atlas is fully priced at around $1.80, but let's say I don't know enough about why the AGO price puts it with a market cap of $394m, let's pause for a moment to look at Gondwana at 3c compared to Atlas at $1.80. AGO has about 219m shares on issue once the 12.3 m AGOO (trading around $1.50 with a conversion price of 20c)are converted next month before their expiry.
    With 219m shares @ say $1.80 each gives Atlas a market cap of about $394m. Atlas has just picked up 7 Pilbara tenements from HDN but their stock price has been declining. I haven't completed my research into Atlas but on initial look, a comparison with Gondwana, should the 25km of strike target have even a sniff of iron-ore, GDA just on 3139, looks like a lot more than a 3c share (and a market cap of $18m with say 600m shares), let's say a 9c share if the news on some good Fe drilling results in the CAZ jv anticipated asx announcement tomorrow comes to pass.
    Even in early stages of resource identification if it?s similar to Pardoo, 3130 should push GDA's market cap to half that of AGO wouldn't it?
    If Gondwana fast track exploration and drilling the iron-ore target in Wallal, there might just be some comparisons with flinders 882 which I see as potentially better than AGO's Pardoo and whatever might be in the jv at Mt Caudian. There is a lot more to be told about this story as Gondwana advances its many tenements and commodity targets.
    The news tomorrow could be the start of a great story.
    Cheers Fatstocks.
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