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Trading LEG:Cameroon Iron Ore and Sundance

Discussion in 'Shares' started by wdongli, 16th Dec, 2010.

  1. wdongli

    wdongli Well-Known Member

    Joined:
    31st Mar, 2010
    Posts:
    1,292
    Location:
    Perth
    Sundance recently has got the notice of the market since its IO project progress. Its IO project in Cameroon of Western Africa.

    LEG seems have missed the advantage of first movers historically

    [​IMG]

    But it bet out on IGO at the worst time, http://www.asx.com.au/asxpdf/20081216/pdf/31f6gx8yf2fwvb.pdf, which gave it about 300% profit.

    Its board shows the capability to take the right risks.

    LEG actually missed chances of the resource booming before GFC since it was in list. Its board seems very good for survival but fail to strike on some significant chance for long enough time horizon.

    LEG most bold acquisition in the ruins of GFC

    LEG has acquired in Cameroon IO projects on 4 September 2010. It has done "Extensive reconnaissance work including mapping, rockchip sampling, trenching and pitting has been undertaken"

    Encouraging rockchip iron results (+60% Fe) have been returned from a number of prospects.

    The rockchip samples fall into three broad categories based on rock type and associated assay results; 1) massive magnetite, 2) goethitic/limonitic material after itabirite, and 3) weathered itabirite with variable iron/silica content.

    The massive magnetite group is characterised by high iron values between 63-69% Fe with associated low silica, alumina, phosphorus and loss on ignition (LOI) values. The goethitic/ limonitic group has an iron range of 47-63% Fe with varying levels of silica, alumina, phosphorus and LOI. Iron values of the weathered itabirite group have a range of 29-47% Fe (average 37% Fe) with associated silica ranging from 10-51% SiO2 (average 35% SiO2), which is typical for itabirite bodies.

    [​IMG]

    Just at the very beginning of the IO dream

    All for LEG IO dream are just at the very beginning. No one know the final results. However GFC might just give it a perfect time to move into this field. If it could confirm the IO reserve big enough, it would be the target of the global investors since its IO project is very close to the port!

    Some said Cameroon could be another Pilbara, which could not be fully taken but exploration means some surprise.

    I bought it at $0.005 for 200,000 LEG share on 28 Oct 2008 and still hold in hand. It was one of 8 pennies I bought in with even initial capital allocation in two months.

    I would hold it until I worry the profit too big to lose!
     
    Last edited by a moderator: 17th Dec, 2010
  2. wdongli

    wdongli Well-Known Member

    Joined:
    31st Mar, 2010
    Posts:
    1,292
    Location:
    Perth
    Notice: I am LEG shareholder!

    Please note:

    I am an LEG shareholder. All of my views would be biased just because this fact.

    I cheer for it since firstly my buying price at $0.005 has provided a great margin of safety, secondly the potential for LEG to get the similar achievement is quite likely, thirdly the correction due to Australia political situation and worrying of the market about the impact of double-dip, has been there for more than years, the longer which it take, the stronger would the shooting of the market be.

    The last but not least is if GFC is bad black swan and the IO in LEG's Cameroon project could be a good black swan.

    However I would like to hold for the good black swan but would not put more money in LEG based on my diversification rules to put more risks to my portfolio.
     
    Last edited by a moderator: 17th Dec, 2010