# UMC - United Minerals Corporation



## JJP (2 December 2006)

You probably need to go to ASX disclosures for this company......to confirm for yourself the very bullish tone that I will present here for this stock.

$25 million company....they have almost $5 million cash. 

Six weeks ago, they announced the acquisition of iron ore exploration tenements in the Pilbara, one kilometre away from BHP Mining Area C (C mine). BHP is ramping up production to 43 million tons per annum from the C mine, which is about annual revenues of $ 3.5 billion for the mining giant.

Other very large proven BHP deposits, also with a few thousand meters of UMC ground.....known as areas A,B,D,E,F & R, all being part of Mining Area C.... surround the area to the north, west and south of the license now owned by UMC. Originally this area was owned by Goldsworth Mining, prior to BHP taking over their operations. According to UMC this area was surrended in the 1990's during a commodity downturn, when iron ore mining was barely profitable.

FMG unsuccessfully took United Mining Company to the Wardens Court in 2005 to try to bulldoze their way into securing these tenements from the much smaller company.

There is a chance that given the ground owned by UMC.....they may indeed prove up reserves comparable with the 1,500 million tons that the $3 billion FMG now claim.

I would suggest, a great opportunity here for investors in this sector.


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## chops_a_must (2 December 2006)

When are they looking at coming into production?


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## JJP (6 December 2006)

$25 million company.......adjoining BHP's Mining Area C. BHP biggest iron ore mine and probably at full production in 18 months will generate $1.5 billion profit for the mining giant.

When are UMC going into production......does it really matter?

To grasp what we may have here......well there is solid chance they will prove up a couple hundred million tons of direct grade ore. Roads/rail run through UMC property. With that quantity of resource production, they could maybe produce  up to 8 mtpa of direct grade ore. 

Market cap of $1 billion......which means a share price of $4.

It would take 2 years and $200 million(plus prove up the resource). Probably they could secure those funds with little further dilution however.

Location is within the heart of the Pilbara. Different to IOH and JMS.

Research it for yourself.....and be surprised.


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## exberliner1 (19 December 2006)

*65% fe - a new JMS only better*

Huge ann today.....upto 65% fe......no wonder Fortescue took them to court to try and get their hands on the the ground.

Anyone read the ann???

Any comments

EB


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## Broadside (19 December 2006)

this is a special, for the bottom drawer and come back in a couple of years and it will be multiples of current prices, holding shares and options


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## exberliner1 (19 December 2006)

bit quicker than a couple of years imo.....Sp up 28% today alone.

EB


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## exberliner1 (19 December 2006)

bit quicker than a couple of years imo.....Sp up 28% today alone.

EB


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## JJP (21 December 2006)

Story from last week about US based iron-ore company, Cleveland Cliffs - well known to Australia investors (they own 85% of Portman Mining).....paying A$160 million for a 30% stake in a 6.5 mtpa iron ore mining operation. They are also now up for their share of capital costs to get the operating running.

UMC a $33 million company may have rail and ports options already available to them.

Read the story below and try to understand what we may have here with this company. 


Cleveland-Cliffs Acquires 30% Of MMX Iron Ore Project
Woensdag 13 December 2006 17:05 
SAO PAULO (Dow Jones)-The U.S.-based iron ore pellets producer Cleveland-Cliffs Inc. (CLF) has acquired a 30% stake in an iron ore project in Brazil's northern state of Amapa, controlled by Brazil iron and steel company MMX Mineracao e Metalicos SA (MMXM3.BR), MMX said in a statement Wednesday. 

Cleveland-Cliffs paid $133 million to acquire the stake held previously by Centennial Amapa. 

According to MMX, Cleveland-Cliffs will also assume 30% of investments in the project, called Sistema Amapa. 

In Amapa, MMX plans investments of $275 million to develop the project, which includes a mine, port facilities at Santana and a 198-kilometer railroad line linking the mine and port. 

The mine and railroad are expected to be operational by December 2007, while the port facilities will be ready by March 2008, MMX said recently. 

MMX estimates that the projects will produce 6.5 million metric tons each year.


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## stiger (22 December 2006)

exberliner1 said:
			
		

> bit quicker than a couple of years imo.....Sp up 28% today alone.
> 
> EB



This is one to watch in the new year. Sitting on hard fought prime mining real estate.


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## JJP (26 December 2006)

Story below refers to BHP's mining area C expansion..... BHP iron ore mine being less than a kilometre from UMC's new mining tenements. According to the story, BHP will build a conveyor from their mine C to mine E, to allow for the big expansion. 

If you check UMC plan of this area....you will note that the distance of the BHP conveyor is actually further than mine C is to the UMC property. 

Means little.....maybe their is no iron ore on UMC land. Except for one thing...UMC last week released outstanding rock chip sample results from this immediate area....average 62% FE. Some investors may still wish to wait for drill results. 

Sobeit....regardless of different investment approaches.....should this company prove up deposits similiar to that of BHP's mining area C ( I think they may)...it is likely this stock will be the best performer of the local bourse in 2007.  

Watch it carefully.

___________________________________________________________________
BHP sets $1.3b to hike iron ore mining by 2007
American Metal Market,  Oct 21, 2005  by Jo Clarke

Find More Results for: "bhp mining area c expansion 2006 "
BRIEFING - ASIA ENERGY...
SYDNEY, Australia -- Anglo-Australian metals giant BHP Billiton has unveiled a 20-million-tonne-per-year expansion of its Western Australian iron ore mining and port capacity a day after rival Rio Tinto announced its own 16-million-tonne expansion.

BHP will spend $1.3 billion to increase the capacity of its Area C mine to 42 million tonnes per year by the fourth quarter of 2007 as part of its Rapid Growth Project 3 (RGP3) expansion. The port and rail facilities also will be expanded, resulting in 30 million tonnes of excess latent capacity at BHP Billiton's Port Hedland facilities, which will be used as more mine and rail expansions come on-stream.

RGP2, the previous expansion, is still being built. It will be commissioned in the middle of 2006 and will take BHP Billiton's Pilbara mining capacity to 118 million tonnes per year. RGP3 will take total system capacity of the Western Australian operations to 129 million tonnes by the end of 2007, with the ramp-up taking 18 months.

"We will increase Area C by 20 million tonnes per year, but at some time in the future the Yarrie Mine will stop, although there is no timeline on that yet," a BHP Billiton spokesman said. "The original Nimingarra and Yarrie deposits are starting to run out, so expanding Area C will pick up some of that lost capacity."

The RGP3 expansion is based on developing the E deposit within Area C. The ore will be sent on a conveyor from the E deposit to the existing crusher at the C deposit, which will be upgraded with new crushing and screening facilities.

"By going to deposit E, it allows us to expand the infrastructure and access other deposits in the area," the spokesman said.


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## dj_420 (28 December 2006)

has anyone looked at these guys?? some excellent surface samples and drill targets identified for drilling next year.

i like the looks of a number of iron ore explorers namely UMC, JMS and YML. with iron ore price increase again (10% so much smaller) so indicates that there is still a huge demand for iron ore.

i think these explorers all with large tenements will be ones to benefit. UMC tenement especially was sought after with a number of other companies.


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## greggy (3 January 2007)

dj_420 said:
			
		

> has anyone looked at these guys?? some excellent surface samples and drill targets identified for drilling next year.
> 
> i like the looks of a number of iron ore explorers namely UMC, JMS and YML. with iron ore price increase again (10% so much smaller) so indicates that there is still a huge demand for iron ore.
> 
> i think these explorers all with large tenements will be ones to benefit. UMC tenement especially was sought after with a number of other companies.



i feel that all the above stocks mentioned will do well.  I currently hold YML and am looking at other iron ore stocks as well.  YML are awaiting drilling results at its iron ore project. Its project is surrounded by all the majors. Should they be promising, it will interesting to see how the market reacts in this bullish environment.
DYOR
DYOR


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## greggy (3 January 2007)

dj_420 said:
			
		

> has anyone looked at these guys?? some excellent surface samples and drill targets identified for drilling next year.
> 
> i like the looks of a number of iron ore explorers namely UMC, JMS and YML. with iron ore price increase again (10% so much smaller) so indicates that there is still a huge demand for iron ore.
> 
> i think these explorers all with large tenements will be ones to benefit. UMC tenement especially was sought after with a number of other companies.



i feel that all the above stocks mentioned will do well.  I currently hold YML and am looking at other iron ore stocks as well.  YML are awaiting drilling results at its iron ore project. Its project is surrounded by all the majors. Should they be promising, it will interesting to see how the market reacts in this bullish environment.
DYOR


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## dj_420 (4 January 2007)

found buying support this morning at 0.28, has tested this support level twice now and held. once it hit support a lot of off screen buying pushed it back up.

i want to see this stock get above 33 - 34 cent mark and close above there. 

todays movement could indicate end of second retracement from breakout from last ann regarding iron ore tenements.


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## dj_420 (11 January 2007)

just to further expand on the breakdown from JJP.

BHP originally owned these tenements. when BHP took over company Goldsworthy part of the deal was that BHP has to relinquish several exploration tenements back to the state.

DFD Rhodes then acquired these tenements in 2004. FMG took DFD Rhodes to court over the application, DFD Rhodes subsequently won and retained the tenements. 

www.doir.wa.gov.au/documents/mineralsandpetroleum/wardens_decisions/2005WAMW23.pdf



UMC acquired 100% of these tenements in 2006 from DFD Rhodes for $200 000, 5 million shares and a 1.6% royalty on the tenement.

http://www.ukd.com.au/documents/154.pdf


the land that is adjacent to UMC is BHP tenements and has been previously reported at 500 million tonnes plus grading at 60% plus.

the potential for UMC tenements containing extensions to this defined resource are great and grab samples have already shown that there is great potential for these tenements to host marra mamba and brockman high grade deposits.

another advantage of these tenements are that they are in close proximity to:

- BHP area C iron ore mine
- Pilbara ore railway
- BHP railway
- Great Northern highway



in addition to the massive potential of these tenements the company has also identified bauxite in couchman range and grass hill with grades greater than 25% alumina. currently awaiting ann regarding further drill results for bauxite deposit.


lastly UMC have tenements for diamond exploration in phillips range
moonlight valley diamond prospect.

company had 5 million in bank as at 30th sept 2006.


IMO this company has two great projects in particular the iron ore tenements in the pilbara. also waiting on ann for company to begin drilling program. shows similarities to JMS and YML, except iron ore mineralisation has been on surface which pending the definition of resource would be much more financially viable to get out.


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## Pat (11 January 2007)

Posting My first chart guys, hope it works. Looks to be in a short downtrend, just around the last high. However a breakout Could be looming, like to see some more volume...
Any suggestions welcome  
Also, could someone tell me what the MACD is indicating with the crossover?


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## dj_420 (11 January 2007)

i see a couple of candles forming, needs confirmation however.


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## dj_420 (11 January 2007)

just wondering kennas whats your take on the UMC charts?


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## Sean K (11 January 2007)

Pat said:
			
		

> Also, could someone tell me what the MACD is indicating with the crossover?



Hi Pat,

MACD crossing over like that is a bearish sign indicating momentum has changed to the downside. If this occurs around the centre signal line this is more bearish. 

Remmeber though that all the technical indicators are just tools in the overall picture. Using a few will give you a better picture of the stock and entry exit points. 

For example, this looks to becomming oversold on Slow Stochastics, and it's in the middle of the Bollinger Band (albeit going down) but it's not an overly bad picture. When these things all line up saying 'ouch' then it's a better indication of where the sp might be headed. 

kennas


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## Sean K (11 January 2007)

DJ, Maybe a harami cross, but would like to have seen the previous day with a longer body and even shaddows and the doji to be a little smaller and even, perhaps.....with stochastics oversold and RSI still above 50 this might confirm a potential reversal. Kennas


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## dj_420 (12 January 2007)

looks like today maybe confirmation of short term trend reversal. nice big white candle for today. 

short term down trend with support at 27.5 and 28 cents. i agree kennas harami cross candle body should completely engulf cross however shadow of doji does not extend past previous canlde. 

however could be harami cross or doji followed by solid white candle.

any other thoughts?


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## Pat (12 January 2007)

I agree DJ, does look like a break in the trend, next week will confirm.
However still lacking in volume, like double than what today saw, will contribute to a conformation.
Thanks Kennas, Good feedback is always helpful.
I'm new to Stochastic's and MACD so here goes....
Looks like a reversal and the buy's are taking advantage as below, What else can these tell me? Anyone


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## mick2006 (15 January 2007)

Might be worth having a look at, this is an article from the resource stocks mag January 2007, thanks to bungy234 on HC for the article.  Looks like it has some great potential.



> Resourcestocks Jan 2007 Issue
> Pages 75 & 76
> 
> United Minerals'
> ...


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## mick2006 (17 January 2007)

with the jump in share price of JMS yesterday and CAZ today it seems iron ore explorers are in demand at the moment.  To me it seems UMC has a fair bit going for it some nice tennements in what they call Pilbara Central, with the quarterly report due soon we may start to see some action in regards a drilling campaign.  This should attract a fair bit of attention to the company, as there landholding borders some of the largest iron ore deposits in WA.  Already have some rock sampling with grades around 65% Fe, so we know there is iron ore there.  They just need to prove up a decent resource and it will make the major sit up and take notice.

If anyone has any time your thoughts would be appreciated.


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## mick2006 (18 January 2007)

up strongly today on very big volume for this one, looks like people in the know are jumping in before the quarterly report which should be out next week.  The quarterly should contain news about a major iron ore drilling campaign which could certainly draw attention to this one.


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## dj_420 (18 January 2007)

bauxite drill results are coming also, grades look excellent so far, just need UMC to identify a decent sized resource.

up 3.5 cents on large volume.

agree the drilling program will really start to bring this one to light.


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## dj_420 (18 January 2007)

ok so previous charts indicated a descending triangle to smallish breakout. i see some decent support at 28 cents and some short term support at 30 cents.

UMC sp up on open making a open window gap (i think). not enough of a gap up to be breakaway or runnaway gap.

however huge increase in volume already over 1 million up to mid day trade.

possibly media coverage of late has brought this to attention of market.


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## dj_420 (18 January 2007)

sorry forgot to add sp will see some resistance around 34 - 35 cents area. a break above this would mean no overhead resistance.


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## mick2006 (18 January 2007)

32c seemed to be a short term resistance lately, and that was taken out quickly today, everytime today it dips to 33c and some large buy orders come back in, it might not break 35c today but you are quite right when it does there is not much resistance to stop it.


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## Pat (18 January 2007)

Agree with you guys... DJ and Mick.... and thanks for the article on UMC, good read. 
Sellers starting to come on, seems sellers are comming in now at 0.33-0.35. Like the volume though. And MACD looks a little more +ve.
I wonder how long it will take to break through the 0.35 mark ?...


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## Pat (18 January 2007)

Soulda attatched a chart.... Does look like a trend reversal too eh?


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## dj_420 (18 January 2007)

well the increase in volume indicates interest has picked up, recently we have seen some media coverage on UMC, this could have helped. iron ore explorers have shown a good increase lately also. CAZ back under spotlight with shovelanna fiasco. 

some good drill results ann for bauxite and begin drill program on iron ore will only further justify the UMC story. a lot of investors will have this on watch list however and only buy in on confirmation of drill results.

agree with resistance through 33 - 35 cents. will take some more solid volume to get through that.


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## dj_420 (18 January 2007)

yeah MACD crossing as well as much larger than average volume, this all following breakout from descending triangle pattern. 

does any one out there know when bauxite drill results are due?


is there anyone else on this one? does not seem to have much coverage on ASF so far.


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## mick2006 (18 January 2007)

seems to be flying under the radar still, is very encouraging that it is now trending higher on decent volume with the floor price moving up along the way.  Sometimes it is better to have a move orderly rise rather than a huge rise followed by a massive sell off.  It seems that there are a couple of choices in the junior iron ore explorers at the moment, JMS, YML, UMC. Each of the companies have their own positives and negatives and anyone of them could be the star for 2007.  Initially I was on the YML bandwagon and made a nice profit selling before the release of the drill results, seems to be consolidating now before the Nickel scoping study is released.  As for JMS I missed the boat on this one, has some very good projects and seems to have caught the eye with the Chinese JV.  

As for UMC I currently hold a couple of thousand heads and a few oppies, it seems to be a few months behind in terms of major news but reading some releases from the company it seems a JV for the Bauxite project might not be far away, leaving it open to concentrate on the very promising and possibly massive iron ore deposits.  
They have got themselves in a very good position where they have a potentially world class Bauxite Project and 3 major Iron Ore exploration areas where rock chip samples have been taken and average grades are around 62% FE.  Any of the Iron Ore tennements could contain massive reserves and they are already taking about delivering to the gate of one of the majors, so it wouldn't surprise if they have had some informal discussions with either BHP,RIO,FMG regarding the potential Iron Ore developments.

So for me its UMC but either of the other two have the potential to be huge as well.

What do you guys think?


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## Pat (18 January 2007)

For me too Mick. UMC is my pick and i guess DJ is on this one too...

As soon as more funds are available i'll top up, but it has to be at the right price, I'd like to get in before 0.35 is broken. I just hope it does't run before I do.

I'm haven't studied up on JMS or YML too much, seem to of already run a bit.

I guess the lure for me was, UMC winning it's case in court (The tenement seemed to be highly sought after and i guess the little guy got lucky) and the logistics, great location for Iron deposit. If they can unload this stuff to BHP, Rio etc, well it's easy $$$. This is why UMC is my pic.

However, I'm a bit wary of the bauxite project though, What significance does the power/gas project of the coast have in relation to the feasability of this project? Just logisitcs?
I guess I'm "wary" of the unknown. I am human  

Also, anyone out there with an idea who's dumping those large number of shares? They are the resistance.


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## robjb5 (19 January 2007)

Agree on UMC prospects.I imagine major energy source only really necessary
if it is decided to on process Bauxite to Alumina..If only Bauxite is to be mined then it is really only like a big market garden..Dig,crush,ship..Much like iron ore, only not as dense a material..However, that said, it is the Pilbara Fe deposits and specifically their location that is the main attraction for the moment in the eyes of the investors/punters/gamblers, et al...


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## mick2006 (19 January 2007)

Having a quiet volume day today after yesterday's large volume, seems to drift lower with small volume then shoot back up with larger volume, I guess people are just positioning themselves for the newsflow ahead.  When it hits the 30c mark buyers seem to step in so hopefully 30c will hold and will push through resistance at 30-34c when drilling in the Pilbara starts.


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## mick2006 (22 January 2007)

Some early buying today, up nearly 7% working its way back up towards resistance at 34c.  Should be a big week with the quarterly due, as said before could be a real sp driver with details about iron ore drilling and hopefully some lab results from their bauxite project.

There might even be something said about a possible JV involving the bauxite project so they can concentrate on their Iron Ore.

Anyway should be an interesting week for this one awaiting news.


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## powerkoala (22 January 2007)

break alltime high at 35c
could be the starting point for outstanding break out?


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## mick2006 (22 January 2007)

currently sitting at 35c with the resistance dissapearing quickly, good to see it moving forward without news as the quarterly should draw a few more investors in with news regarding their two potentially world class developments.

Someone is seriously buying this one up now with only 400k left on the sell side and if sellers come in they are snapped up very quickly.  

Could it be institutional interest snapping up the small float left on over?


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## powerkoala (22 January 2007)

it could be institutional buyers
look at the number they bought
at least 80k each transaction
36c now
even seller starts to run away


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## mick2006 (22 January 2007)

something is certainly going on, has been going up solidly on good volume for the last couple of weeks, 1 million plus shares on the good days and only small volume on the down days.

There has been alot of off screen buying which is why I thought it might be institutional buying, where they have a price in mind and they buy upto it and let it settle for a couple days and have another go.

What do you guys think?


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## powerkoala (22 January 2007)

well, we got blue sky here
lot of buyers and less seller
breach 38c now...
guess something is really nice going to happen soon


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## dj_420 (22 January 2007)

UMC has broken through a number of resistance points in recent trading. first level of resistance was at 32 cents. i now see this 32 cents level as a new base of support. has gone above 32 cents several times but on a number of occasions failed to close above this level.

second resistance level broken was 34.4 cents. broke through this area on higher than average volume. i would like to see some new support form around this old resistance level of 34.5 - 35 cents to form a new higher level of support.

sp needs to close above these old resistance levels for a number of days to build new support and confirm breakout to new highs.

large increase in volume and MACD indicator looking good for indication of uptrend resuming.


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## mick2006 (22 January 2007)

buyers now seem happy to defend the 37c mark, buying up anytime it falls to that level.  If the quarterly contains any unexpected goodies it could send the stock skyward, can't see to many willing to sell before the company updates its major projects.


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## dj_420 (22 January 2007)

a close at 38 cents. great increase of 22% today. very bullish IMO closed one cent of the intraday high of 39 cents. huge day for volume with 2.2 million traded.


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## mick2006 (22 January 2007)

could the following article explain the takeoff in UMC shareprice, FMG had previously tried to get they hands on UMCs Iron Ore tennements and would make sense if they a trying to shore up reserves for the future.

If you read the last line that FMG are already in discussions with third party users for their iron ore infrastructure, could this mean a potential tie up with UMC?

If UMC don't have to fund their own port and rail it would be a massive boost for a junior miner, it simply would be a matter of dig it up and ship it out.  Low cost because mineralisation is poking through to the surface, high profit with current high iron ore prices.

Also would it be possible one of the majors is slowly accumulating UMC stock to get a seat at the table when UMC shores up a major reserve?

FMG offers to help on ore port upgrade 
19th January 2007, 8:00 WST

Andrew Forrest’s Fortescue Metals Group has backed its pledge to bust open transport access in the Pilbara with an offer to build key infrastructure that may underpin a $186 million upgrade of public wharf facilities at Port Hedland. 

Fortescue has always guaranteed third-party access to port and rail infrastructure now under construction as part of its $3.7 billion Pilbara iron ore empire. 

But it yesterday confirmed it might also build a dedicated ore conveyor linking its own facilities at Anderson Point with a multi-user public wharf planned by the Port Hedland Port Authority at neighbouring Utah Point. 

Fortescue government affairs manager Julian Tapp said the public wharf was vital for the development of new mines in the Pilbara. Fortescue also believed a conveyor from its own rail-unloading facilities could make both the wharf and Fortescue’s own railway more attractive to prospective users. 

“We wrote to the port and said we’d be interested in using it (the public wharf) and . . . if there’s reasonable demand, we could stick a conveyor across to Utah Point,” he said. 

The proposed kilometre-long conveyor link could dramatically improve the efficiency of the planned 16 million tonnes a year public wharf, which will otherwise be accessible only by road unless mining giant BHP Billiton is forced to provide third party access to its passing Goldsworthy-Finucane Island railway. 

Under a long-standing expansion plan, the PHPA aims to cater for an expected increase in third party bulk mineral exports, including iron ore produced by junior miners such as Atlas Iron, by building the new wharf adjacent to BHP Billiton’s Finucane Island facility. 

The new wharf will replace the small public wharf on the eastern side of the port, which will instead handle higher value materials such as oil and consumables, significantly reducing truck movements through the centre of the port town. 

The upgrade is expected to be approved in the next few weeks so that the facility can enter service late next year. The project would be underwritten by user fees and commitments from prospective users of the facility. 

A further $200 million Stage 3 expansion is also believed to be under consideration that would include dedicated rail access to the public facility. 

Mr Tapp said the proposed conveyor would give Fortescue greater flexibility. Its Anderson Point berth would be reserved for Cape-size vessels, while shipments destined for Fortescue’s smaller customers could be loaded onto Panamax vessels at the public wharf. 

Emerging miners were also more likely to use only smaller Panamax vessels, he said, while conveyor access to the public wharf would give Fortescue additional loading capacity during any expansion or maintenance work at its own facilities. 

Mr Tapp also confirmed Fortescue may launch a fresh application to the National Competition Council to have BHP Billiton’s Goldsworthy railway “declared” a service under the Trade Practices Act and opened to other users. 

Last month the Federal Court ruled that neither BHP Billiton’s Goldsworthy nor Newman railways should be exempt from national competition laws, while the Australian Competition Tribunal is expected to hear Fortescue’s appeal against the Federal Government’s refusal to declare the Newman railway before the middle of the year. 

Fortescue has also begun negotiations with prospective third party users of its own rail and port operations. 

JOHN PHACEAS


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## dj_420 (23 January 2007)

qtrly out today, not much more than we already knew, a number of additional leases have been granted, with another two (from memory) that are pending approval.

UMC has stopped diamond exploration, and decided to focus efforts on the two main projects bauxite and iron ore. sensible move IMO, no point in wasting time with the diamond exp. these two projects are potential company makers and should have full focus of company.

so we are still awaiting some bauxite results, tenements to be granted and the drilling program to begin in pilbara.


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## dj_420 (24 January 2007)

just a chart updating movements since breakout. sp has held critical support level of 34.5 cents. from market depth it shows that this area has large amounts of bids increasing.


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## Pat (24 January 2007)

UMC is finding some good support as DJ said, Closed at 0.355 today, However resistance is forming at 37-40 cents. More volume will break these levels, a good ann on drill results should help UMC's fight.

The Quarterly didn't add much to the equation, gotta wait for those drill results. And I guess conformation of the 2 other tenements.

The chart, Forming a nice 4 month trend, and looks to me like its riding the top Bollinger Band, when will it retrace to the bottom band?

MACD, I'm still learning how to use this indicator to its full potential, so any critisism is welcome... anyone?

Stochastics says it isn't over sold just yet so they all look good to me.

Go UMC!


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## JJP (27 January 2007)

Usually not logical to even attempt to work out iron ore reserves from surface sampling......of course it just can't be done, without depth measurements for a start.

However, its hard not to get excited about the results of their mapping and rock chip sampling, reported via the ASX on the 19th December, 2006........expecially in view of the central Pilbara location - and some old drill data reported in the same area from Goldsworthy Mining.(in 1987)

On page 3 of that 19th December release (Fork North brockman)......it seems that the UMC geologist has located surface mineralisation of some 2.5 km in length and up to 300 metres in width. They undertook widespread 7 samples from various locations within this zone.

Results of which, I have shown here:

U1025RC  65.5%
U1004BRC  64.3%
U1004RC  62.5%
U1018RC  63.4%
U1001RC  62.5%
U1002RC  60%
U1005RC  65.5%

and a significant 8th sample from a location 500 metres to the north of 62.7% (U1006RC).....which does not seem to be part of the surface zone. (no other of these iron ore small caps have these sort of chip results

Now if we take it one step further, just for purposes of this exercise.....lets just use a mineralisation depth of say 15 metres across this 750 sq km zone(ie 2.5 km x 300 metres) - remember this is whats on the surface only.....and a iron ore density of a fairly typical 3 tonnes for each sq metre.........comes to 33 million tonnes of high grade ore.....from one location.

Could be a load of hypotical rubbish......except for one thing......in the 1987 drill, up 100 million tons of high grade ore were reported in this same area by Goldsworthy. (UKD ref 4/10/06 announcement)


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## JJP (27 January 2007)

Typing mistake of course in the last post......should 750 sq metres, not 750 sq kms.

By way of trying to value what a discovery of 33 million tons of high grade fe would be worth......company like MGX started off with about that amount of reserves at Tallering Peak. MGX when up to a market cap of $300 million as exports got underway.......at the start of the iron ore boom.

Pilbara has port and rail facilities much cheaper than that of MGX's mid-west location. Most interesting stock - which in my opinion cannort be compared with all the other smaller iron ore plays, that ofter get a mention here.


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## JJP (30 January 2007)

Here is a 1987 drill report for what is now BHP's Mining Area C.....soon to be largest iron ore mine. As we have said, on a number of times......UMC leases are right in the middle of these high grade proven deposits.

http://geodocs.doir.wa.gov.au/viewer/multipageViewerAction.do?documentId=37431&viewMarkId=0&ct=true&at=none&btv=true&atv=false&vmtv=false&ac=ff0000&cabinetId=1200&pg=3&scl=64&bds=0|0|2560|3584

The 1987 results are noteworthy because of the huge quantities involved over a number of locations..........but what is of particular interest however.....is the fact that BHP even today still quote a reserves figure of 890 million tonnes at Mining Area C..... the 1987 report actually refers to 880 million tonnes at Area C.. 

BHP handed back to the Crown.....(what is now UMC leases) in about 2002 prior to the boom.....it would seem possible therefore, that a decision to relinquish parts of Area C was made on a 1987 drill programme. 

If true.....I would suggest a definate positive...... you would consider it likely that with improved exploration technology, UMC may also made some major iron ore discoveries on their land.


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## dj_420 (30 January 2007)

agreed, although im sure the directors have more of an idea of whats on the land than we do.

i would like to know the drill locations of goldsworthy, that would make it a little easier to understand what sections lie on whose land.

interest seems to have dropped a little, however i am expecting another two tenements to be granted in the area, this may help pick up interest again when granted.


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## dj_420 (30 January 2007)

UMC chart looks great. last few times UMC has broken resistance the support has held on retracement. i see major support levels at 32 and 34 cents. 

the next area of resistance will be the 38 - 39 cents mark. a break above here on volume would be blue sky for sp.

sp increases have been on large volume and retracements on small volume, this an indication that large volumes have not been dumping their stock on retracements.

the UMC story is starting to unfold with a lot more interest been generated with a sustained increase in volume as compared on a historical basis.


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## powerkoala (30 January 2007)

indeed,
sellers seems dry up and buyers start pushing up.
39c will be next resistance with support on 35-36c.
nice week to see where this will go


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## dj_420 (1 February 2007)

well broken out now to new highs i believe. 40 cents. been on this one for a while, dont know how many people are on it but its run well over last month or so.


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## JJP (3 February 2007)

Always in the back of investors minds, is the question - well if these tenements are so good.......how come UMC managed to secure them in the first place.?

I have asked this question of management....as to why BHP released these odd shaped parcels in the first place. Seems to draw a blank with them.....they either don't know or won't say....or its too complicated. 

However.....MIGHT and I stress might, have now come across the answer......and probably UMC management may not be aware of this situation also.

BHP got serious about looking to develop Mining Area C in about the year 2000. Previously the project had been owned by Goldsworthy Mining (remember the 1987 drill results undertaken by Goldsworthy). 

BHP looked for any State regulations that applied to this area. In fact there was a State government act called ......MOUNT GOLDSWORTHY AGREEMENT ACT 1964.... (maybe there was a proposal to mine around then- I do not know). Anyway I have come across a copy of this legislation on line.......updated in 2000 with details of BHP's joint venture partners in the project, etc 

It definately refers to what we know as Mining Area C.

Under the terms of this legislation......very specific mention (and included in a latter modification) - is made to the aggregate area not exceeding 300 square miles within the mining lease.

Here is an extract: 

4) If and when the Minister has approved or is deemed to have approved the Joint Venturers’ proposals pursuant to this clause the Joint Venturers may apply for a mineral lease of mining area “C” or any part or parts thereof (not exceeding in aggregate area 300 square miles inclusive of the areas of the original mineral lease granted under clause 8(2)(a) hereof and the second mineral lease if granted under clause 11(6) hereof and in the shape of a parallelogram or parallelograms) and the Minister shall cause any necessary survey to be made of the land 

http://72.14.253.104/custom?q=cache...tion+mining+area+c+survey&hl=en&ct=clnk&cd=16


--------------------------------------------------------------------------------------------

Without going to a huge amount of effort....it does look like BHP remaining parcel, lease number ML281A....or whats left of Goldsworthy original TR3156H does consist of about the required 450 sq kms. 

Might have been a situation in about 2000, whereby BHP undertook a desktop survey to provide compliance with the legislation. 

Would also held to explain this somewhat strange circumstance that UMC discussed....how could this come about....maybe we now have the answers......UMC quote follow: 



• Two of the tenements have previously documented substantial iron ore mineralisation. The centre of these mineralised locations (as plotted on Government data) fall inside the UKD tenements although close to the boundary with BHP’s adjacent Mining lease. It is the opinion of the UKD board that substantial portions of these two mineralised areas are on the UKD tenements, although some will inevitably fall onto the BHP Billiton ground. 

They are referring to 140 million tons of FE at Camp Hill and Fork Hill.
__________________________________________________________________________

These posts have a very bullish tone.......I would honestly suggest however that you do your own research and obviously be careful....especially with exploration companies.l


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## dj_420 (5 February 2007)

i would like to see if UMC plan on releaseing previous drill results as done by goldsworthy or BHP. i may call them today and ask a few questions regarding tenements.

so we already know there is substantial tonnage there, then it is just a case of proving up this tonnage.


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## dj_420 (7 February 2007)

ok heres a bit of a breakdown on tenements so far.

E47/1429 - Pending
Recommendation: Grant, 19/09/05

E47/1431 - Live
Granted: Live: 26/07/06

E47/1432 - Pending
Recommendation: Grant, 19/09/05



So the one tenement that has so far been granted has Fork North on there. the fork north area has a previously documented tonnage of 100 million tonnes of fe at 60% + grade.

so not sure if anyone is aware of this but they already have massive deposit, i dont think this is a JORC compliant deposit yet, BUT given that this area is already live they just have to submit application to mine and the drilling program can begin.

here is the document stating there is 100 million tonnes at fork north.

http://www.unitedminerals.com.au/documents/154.pdf


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## dj_420 (13 February 2007)

ok now we have some news guys!!

two more tenements have been granted and gone live as of today!

this is huge news for UMC as we can now start drilling program. 

E47/1429
E47/1431
E47/1432

are now all live. i will find estimates of resources after work and post up on this. so now its just a case of waiting for drilling to begin.

IMO i expect to see a large increase in UMC due to these tenements that FMG tried hard to get hands on are now been granted.


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## dj_420 (13 February 2007)

i dont think many people are actually on this but IMO this company is now undervalued. the reasons are due to the fact that UMC have just had another two tenements granted (which means they are live and drilling program can begin).

if you look at the report here:

http://www.unitedminerals.com.au/documents/154.pdf

you will notice that the two tenements just approved are right smack bang in the middle of BHP mining area C. a substantial amount of the mineralisation runs from area C onto UMC grounds. the centre of mineralised locations fall inside UMC tenements.

previously documented estimated iron ore tonnages are shown.

Camp Hill - 19 million tonnes at 62.8% fe
Fork North - 100 million tonnes at 60% + fe

previously i think market was holding back as one tenement E47/1430 had been rejected (dead) as it fell inside national park bounds.

the importance of these last two tenements cannot be overated, the application of these tenements was contested by FMG, so we know that a large mining house tried very hard to get their hands on this area.


these tenements went live today so we should expect an ann from UMC in the next couple of days. 

to get access to current tenements status go to:

http://www.doir.wa.gov.au/

and register, you can then access the tenegraph program which allows you to view all the current mining status.

this program is very good for checking on the progress of current tenements and you can often find out which ones are granted before release of ann to the market.


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## dj_420 (13 February 2007)

ok trading channel has shown clear uptrend since announcing the pilbara acquisition and grab samples.

lately movement is towards the bottom of the trading channel. slight triangle could indicate momentum swing back uptowards top of trading channel. see movements hitting top of trading channel falling down hitting bottom and movement upwards again.

looking good technically and based on fundamentals could provide catalyst for breakout. only time will tell. so far stock has increased around 50% since pilbara ann and breakout. 

downside i see bottom of trading channel around 36 cents, support at 34.5 cents. resistance is at 40 and 42 cents.


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## dj_420 (14 February 2007)

sp touching on 40 cents now. first level of resistance. a lot of people are starting to get set on this one, ann not out yet but tenements have been granted.

i would like to see a break of the first level of resistance at 40 cents and then build some support there. IMO the next ann will help to do this.


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## Pat (19 February 2007)

Not too sure what to make of this, DJ any ideas? 

I see new support at 35 cents, but it seems to of come out of DJ's trading channels. Still some good gains though.

MACD is on the move...down
Stochastics is not confirming a continuation of the trend either....


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## spottygoose (19 February 2007)

http://www.theage.com.au/news/busin...l?page=fullpage

YML part of an alliance to pressure for infrastructure access....


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## Pat (20 February 2007)

Pat said:
			
		

> Not too sure what to make of this, DJ any ideas?
> 
> I see new support at 35 cents, but it seems to of come out of DJ's trading channels. Still some good gains though.
> 
> ...




Well yesterday sucked!

I guess it needs to closed at or above 35 cents to form a good base of support.

Now support is? 30 cents? But only minor support at that....


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## spottygoose (20 February 2007)

spottygoose said:
			
		

> http://www.theage.com.au/news/busin...l?page=fullpage
> 
> YML part of an alliance to pressure for infrastructure access....




Oops that should read UMC part of an alliance ......


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## Pat (28 February 2007)

Seems to be holding tight in this share storm on the last day of summer!
When will these guys stick a drill into the ground?


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## Pat (28 February 2007)

Definate change in the trend here. Any thoughts guy's?


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## Pat (2 March 2007)

Well, beaten with an ugly stick! 
Hope theres no more beating to come.

Down trend in an uptrend I hope!

Support at 22.5 cents.

MACD way down, not looking good.

Stochastics has been on a slow and steady decline.

Where do we go from here UMC? With some great tenements, seems to be an unwanted, unloved stock now.


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## Pat (22 March 2007)

So no one here like UMC?
So unloved.
Anyway some great action for these guy's, "\broke the trend" and held.
Soon these guys will be drilling and then the market will find out what they've missed.
I wonder what has caused the price to go up today?


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## dj_420 (23 March 2007)

wow what a turnaround. i still held these guys do to tenements, eventually sentiment had to turn.

from a low of 26 cents yesterday we have touched 39 cents today. glad i held on to this one, should have topped up more at those lower levels but had no idea we would see such a turnaround!


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## dj_420 (23 March 2007)

possible a combination of alan birchmore returning, bauxite tenements been granted, drilling on fe to start soon.

only wish i got some on lows!


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## Pat (23 March 2007)

I think it may settle @ 33-35 cents today, huge run, but need an ann to sustain.


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## saltyjones (23 March 2007)

For months this little rock star has been pulsing buy on the merits of past 1980's goldsworthy drilling : 120m tonnes (non-jorc) of Fe minimum! Right in the hub of the Pilbara action.


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## haemitite (24 March 2007)

saltyjones said:
			
		

> For months this little rock star has been pulsing buy on the merits of past 1980's goldsworthy drilling : 120m tonnes (non-jorc) of Fe minimum! Right in the hub of the Pilbara action.



Exactly.

Non-jorc, low to moderate FE, high impurities.

The 19Mt of marra mamba at Camp Hill has some promise - its the same ore BHP mine at mining area C, but  the other tenement sounds like the standrad high phos medium iron found pretty much everywhere in the Pilbara.


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## Pat (27 March 2007)

haemitite said:


> exactly
> 
> non-jorc, low to moderate FE, high impurities.
> 
> The 19Mt of marra mamba at Camp Hill has some promise - its the same ore BHP mine at mining area C, but  the other tenement sounds like the standrad high phos medium iron found pretty much everywhere in the Pilbara.




Haemitite,

Your posts on UMC at other forums suggest you are not optimistic of the potential in the Pilbra or the Kimberly's.

Is this due to the high phos in the brockman and the small amount of marra mamba? 

Any thought on the Bauxite project? Other than it's been tried before?


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## haemitite (29 March 2007)

Pat said:


> Haemitite,
> 
> Your posts on UMC at other forums suggest you are not optimistic of the potential in the Pilbra or the Kimberly's.
> 
> ...



I'm not pessimistic, just not excited at the info to-date. I think the marra mamba has potential, from the grades quoted so far the brockman material sounds high phos. This may change with more info

I looked briefly at the potential of kimberly bauxite some years back when i worked in a consultancy specialising in evaluating mining projects. We gave it a first pass filter and then let it go. Again further drilling etc may change the project viability.


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## Pat (29 March 2007)

Hopefully Haemitite. Drilling provides the answers.

But does anyone have any explanation of the MASSIVE buy today?
$345k is a lot to invest in something highly spec... just a quick punt buy someone with $$$ to burn?


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## Pat (10 April 2007)

UMC...

Volume up today, what’s with that? Market expecting some drilling soon?

Chart looks good too... on the presumption that it break's 43 cents and the bumps are smoothed out in a couple of years. Slow and steady with an abundance of bauxite


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## Pat (19 April 2007)

So unloved and it's testing old highs....

"They" say UMC to drill in mid April, well thats now and no news.

Anyone else here still on this roller coaster? Or too scary for ya's? :


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## dj_420 (19 April 2007)

yeah im aboard this one, still patiently waiting. good to see UMC volume picking up of late and slight sp increase.

i think there are a lot of people waiting for an ann on this one, come on lets start drilling!


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## robandcoll (21 April 2007)

dj 420
Can u post one of your charts? Looking at topping again.


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## dj_420 (21 April 2007)

ok from a short term chart i think UMC has broken through resistance at 40 cents. this time the sp actually closed above the resistance level, which is a good indicator, i want to see the sp hold this 40 cents mark and close above it for a few days to build a new base of support here.

last time it broke above 40 cents the trading range was a lot larger and more volatile, this time the sp increases have been with a much tighter trading range and we have seen some small increases each day.

i like what this chart is doing and it does not seem as volatile or rapid increases as we have seen in the past.

downside i see support around 35 cents and then 30 and 32 cents mark. 

i think the increases of late have been on the back of anticipation of drilling to start for iron ore and also news on bauxite deposits.


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## dj_420 (26 April 2007)

not a huge amount of interest in this one BUT i think it has huge potential.

qtrly released today stating UMC is now the largest bauxite tenement holder in kimberley region. BHP had done historical work there finding grades of around 39% which is great grades, bauxite can be financially viable down to 20% grades.

major development happening in that region soon with gas and oil fields of the kimberley to start been developed. so bauxite potential is huge, i think alan birchmore has thought long and hard into the future and has snapped up all these bauxite tenements very quickly.

drill rig has been secured for upcoming drilling on the iron ore tenements. pre jorc figures have estimates around 100 million tonnes of hematite here.

company is going from strength to strength and i believe can eventually develop into a great producer (couple of years down the track).


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## dj_420 (26 April 2007)

UMC now trading at an alltime high, broken through resistance and is in blue sky.

recent trading has seen a tight pennant formation trending upwards, todays trade showed that sp has broken through previous resistance at 41.5 cents.

although on lower volume the sp has been steadily increasing each day 1-2 cents with no huge volatile movements. the MACD is looking good because of this slow uptrend and is in a good position (ie hasnt run away from itself and broken right out). 

slow stochastic also indicated that although it looked recently overbought has come off a bit due to slow and steady increases.

not many sellers left at all on this one indicates to me that stock is been tightly held and day traders wont be entering in or out easily on this one.


todays increase has come off the back of a positive qtrly stating that UMC has secured a drill rig for iron ore tenements and that UMC has also secured a vast amount of bauxite tenements. 

i think alan birchmore has been planning these bauxite acquisitions for quite some time as now UMC is the largest land holder in the kimberley region for bauxite. this coupled with the fact there are some major gas and oil fields of coast of kimberley could in the future see major development meaning that the bauxite would then become financially viable.

UMC have shown great focus the past few months and now sp is beginning to show it. UMC are focusing on two projects bauxite and iron ore. they have got rid of diamond exploration (great move) this IMO is a much better use of shareholders funds rather than putting drill holes over the whole country in the hope of hitting something big.

either one of these projects could be a company maker in its own right so exciting times ahead for this junior.


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## JJP (26 April 2007)

They look the real deal...its not complex for commodity investors to work out, what we may have here.

Previously the contract geologist had idientified three zones of outcropping high grade iron ore......one of these areas had previously been drilled with a reported 100mt of high grade iron ore, in that location. UMC also say that zones of iron-enrichment show a clear structural control. (structural control to what....BHP proven deposits of 900mt - thats what they are referring to)

Now we here today following some aerial electo survey...there are further anomalies that will be drilled next month. 

UMC said today in the ASX release......."It is planned to drill as many targets as possible......." 

Just how many targets do they have (next to BHP's Mining Area C)!!!!


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## Pat (27 April 2007)

dj_420 said:


> i like what this chart is doing and it does not seem as volatile or rapid increases as we have seen in the past.
> 
> downside i see support around 35 cents and then 30 and 32 cents mark.
> 
> i think the increases of late have been on the back of anticipation of drilling to start for iron ore and also news on bauxite deposits.




I disagree DJ, looks to have run pretty hard here since hang seng dropped, the majority are updays, this mean anything?

PS. Dont know what it is with my laptop, But charts upload as Jpg's not gif's


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## dj_420 (27 April 2007)

Pat said:


> I disagree DJ, looks to have run pretty hard here since hang seng dropped, the majority are updays, this mean anything?
> 
> PS. Dont know what it is with my laptop, But charts upload as Jpg's not gif's




i think it looks that way on your yearly chart, take a look on a 6 monthly or 3 monthly does not look quite as steep. lol.

i think a lot of this was when it dropped to a low of 23 cents then recovered very quickly.


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## Pat (27 April 2007)

Yes I see what you mean.

Though if it closes up near 50 cents Monday then i'd say its running away. I may get my re-entery.


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## dj_420 (3 May 2007)

UMC chartwise looks great. i believe it closed at its highest closing price today.

chart wise the last time i posted we wanted to see UMC hold the 40 cents mark. it has done that well and has now closed over 40 cents for over a week. great to see new support building around this new base.

downside i would put short term support at 44 cents and some more support at 40 cents.

UMC has been trading in a channel and has had several false breakouts of this channel formation. it however has held in this channel and continued the uptrend. 

MACD is looking good, its not breaking away at all, stochastics pointing that it is coming off from slightly oversold from the break of 40 cents a couple of weeks ago and sp has still held its position. so the increase is actually looking very steady and without huge volatile sp movements.

all of this i believe are on the back of upcoming drill program to prove up a historical 120 mt iron ore resource estimate (pre JORC), as well as the fact that UMC are now the biggest bauxite tenement land holder in kimberley.

what i also like is that major oil and gas fields off coast of kimberley are soon to be developed which would mean bauxite production could become feasible when energy becomes available.


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## dj_420 (7 May 2007)

this one is breaking out very nicely. not many sellers plenty of buyers, news is starting to get around about the potential in the iron ore tenements that are due to start drilling later this month.

also will point out the relevance in the bauxite tenements and major development plans going ahead for the area.


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## dj_420 (8 May 2007)

UMC hit 60 cents on close today all time high. gapped up last couple days from last weeks run.

very tightly held still hardly any sellers. drilling is supposed to start within two weeks. looking great for longs.


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## dj_420 (9 May 2007)

new iron ore discovery on UMC tenements, this one is turning into a monster!  

http://imagesignal.comsec.com.au/asxdata/20070509/pdf/00719514.pdf


this one looks great with great grab surface samples 60% plus fe, this one is shaping up to be a real winner, drilling these new discovered targets and others at the end of this month.

only wish i bought more a week ago! 

40 odd cents last week now over 70 cents. am very surprised not many people actually on this one. have been raving about it for a few months now and only a couple people from this forum are on board.

oh well each to his own. i think im talking to myself but oh well. this one will be in the spotlight soon.


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## Simmo (9 May 2007)

I have some, picked up some couple of months ago in the high 30's only to see them fall on lack of news. Held on as like the potential, so set loose stop.

The rise from the lows of March has been pretty spectacular.

Picked up UMC as wanted exposore to an Iron Ore junior and like the location and historical resources on their tenements.

Happy with that decision now...


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## dj_420 (9 May 2007)

Simmo said:


> I have some, picked up some couple of months ago in the high 30's only to see them fall on lack of news. Held on as like the potential, so set loose stop.
> 
> The rise from the lows of March has been pretty spectacular.
> 
> ...




i agree with that. UMC also are going to have huge exposure to bauxite in the future, now biggest bauxite tenement holder in kimberley region.

all we need for bauxite development is major infrastructure and energy development which will come from oil and gas been developed in region.


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## robandcoll (9 May 2007)

DJ.
Hang on to them long term. Was talking to a State Manager in the infrastrucutre industry today and Broome is expecting up to 10,000 workers over the next five years as part of the Gas complex of the coast up there. A bit of panic is starting already as WA is in a massive skills shortage as project after project hits the ground running.


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## dj_420 (9 May 2007)

dont worry i wont sell them for about another 5 years! maybe longer if they start producing iron ore and bauxite


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## kransky (9 May 2007)

Bought in at 28.5c a few months ago... the iron ore tenements alone look fantastic. I too wish i had bought a few more at the time


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## dj_420 (11 May 2007)

well congrats to holders this one is going from strength to strength.

btw i found a table that compared iron ore juniors and their relative market caps compared to their deposits.

UMC was second lowest on 19 mt proven. goldfields reports state 119 mt pre JORC figure. when UMC start proving up this resource we will see a significant depreciation in the price per tonne this company is valued on.

i will find the table for everyone and post it up. cheers.


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## Broadside (11 May 2007)

and as scorpio pointed out with that table, the all-important infrastructure is right on their doorstep


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## Broadside (15 May 2007)

iron ore, bauxite and still a low market cap though obviously it is running today on this news



==========================================================


MAJOR ANNOUNCEMENT - BAUXITE PROJECT
MOU SIGNED WITH NORSK HYDRO (A FORTUNE 500 COMPANY)
FOR A POTENTIAL BAUXITE MINE AND ALUMINA REFINERY
The Directors of United Minerals Corporation NL (UMC) advise that a Memorandum of Understanding (MOU) has been reached with Norsk Hydro’s (“Hydro”) subsidiary, Hydro Aluminium AS (“Hydro Aluminium”) to form a joint venture. Norsk Hydro is a Fortune 500 Company with market capitalisation of approximately US$41 billion. It is one of the world’s largest integrated aluminium producers and is owned 43% by the Norwegian Government.
Hydro Aluminium has established an excellent record in Australia’s aluminium industry through its smelter operations in the Hunter region of New South Wales, where it wholly owns and operates the 170,000tpa aluminium smelter at Kurri Kurri and is a joint venture partner in the Tomago smelter.
The purpose of the joint venture will be to develop an integrated bauxite mine and alumina refinery in the Kimberley region of Western Australia. The cost of such an initiative is estimated in the order of A$4 – 5 billion including associated infrastructure. Success will depend on achieving a large and reliable supply of bauxite at an acceptable grade and an equally large and reliable supply of gas at commercially viable prices.
For the last 12 months, UMC’s 100% subsidiary Bauxite Australia Pty Limited, has been exploring in areas adjacent to the Mitchell Plateau bauxite deposits. A year 1 drilling program commencing in 2006 made a successful start in identifying extensive bauxite mineralisation on the Company’s leases.
The potential for a substantial integrated bauxite mine and alumina refinery is heavily driven by forthcoming developments of gas projects which have been announced for the Browse Basin off the Kimberley coast. The WA Government has created the policy framework to ensure that sufficient reserves of gas from these projects are dedicated to onshore domestic use. The joint venture will endeavour to take advantage of this historic availability of major energy sources in the Kimberley for the first time.
1
The joint venture is subject to completion of satisfactory due diligence and formal documentation. Hydro will hold 75% of the joint venture and UMC 25%. Once bauxite and energy requirements are generally satisfied, Hydro will contribute 100% of feasibility expenditure with respect to the alumina refinery through to the conclusion of a bankable feasibility study (BFS). UMC will have the opportunity to participate in the project up to its 25% share.


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## dj_420 (15 May 2007)

yeah UMC is looking better and better, i thought the bauxite tenements would be very valuable, and i was right.

project infrastructure estimated between 4 - 5 billion, now good to have NORSK onboard and UMC retain 25% of the project.


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## Broadside (15 May 2007)

This will probably get culled as a ramp but when you look at the projects this company has on the boil...bauxite, high grade iron ore next to rail infrastructure...I know this has had a big month but I think this is only the beginning.  The next 12 months could be huge if they keep moving forward with each of these projects.  I am certainly holding these long term until they come close to realising their potential.


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## dj_420 (15 May 2007)

im holding this one until they prove up 500 mt of high grade direct shipping ore, are producing bauxite with their new JV partner and the market cap is well north of $1 billion dollars.

ok i will justify my rantings, 

so far UMC have a pre JORC figure of 119 mt for one area of their iron ore tenements, they have also discovered a new area previously unidentified with high grade ore at surface also.

bauxite tenements recently acquire have around 40% alumina, which at current prices is very viable and obviously so as NORSKA have signed the JV with UMC.

so the two projects are both indeed company makers and now it seems UMC is proving them both up


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## kransky (24 May 2007)

I was appalled to see directors sell close to 1M shares this week so after seeing her start slipping i sold out and am waiting to get back in at a lower price.


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## dj_420 (24 May 2007)

been holding since 31 cents, im not selling this one for CGT reasons, topping up on weakness. 

appalled that directors sold? they still have significant holdings.

from what i have actually heard UMC has already been approached by a major for iron ore, signed JV with Norsk hydro, are about to start drilling on elephant ground, discovered new targets - jocelyn and all in the last month!

they have significantly added to shareholder value, if i held that many i would take some profits along the way also!

good luck getting in on lower price, may have just finished retracing today, will put up a chart later, but strong buying found in the mid 70's.

trying to time things like this is very hard. best way to do it is sell right into strength ie over $1 then buy on retrace, not sell when it is retracing as you can miss the bounce and pay a higher price for what you sold at.

just my opinion


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## dj_420 (1 June 2007)

looks like its just you and me on this thread broadside!

UMC showing good increase today up around 15% on higher volume. drilling campaign to start next week ive been told, been delayed by a week or so.

first targets are fork north and jocelyn. will post chart tonight.


----------



## GoYouGoodThing (1 June 2007)

Well done to holders of this share. I bought them when they were ukd at 15.5cents. Sold a couple of weeks later at 16 cents. Kicking myself now. Enjoy the profits all


----------



## dj_420 (15 June 2007)

UMC been consolidating for a few weeks now, saw a descending triangle to breakout two weeks ago, dropped back after breakout though. now starting to form again. i think an ann is needed to push this one through to next levels.

good short term downside support around 76 cents and 80 cents, been tested on a number of occasions and held.

fundamentally we have drilling program about to start, will be good to see what hits we get especially on newly discovered target "jocelyn".


----------



## Broadside (18 June 2007)

looks good dj.................

========================================================

ASX Release 18th June 2007 ASX Code: UMC
Iron Ore Project – Drilling Commences
• United Minerals Corporation NL (UMC) is pleased to announce that drilling has commenced at the Company’s Pilbara Iron Ore Project.
• Targets include areas of outcropping iron ore mineralisation at the Jocelyn, Camp Hill and Camp Hill West Prospects. Further targets include areas of hidden mineralisation associated with these areas of outcrop.
• The drill campaign is anticipated to be approximately 3-4 weeks. Full assay results will be a further 3-4 weeks. It is anticipated that results will be announced once all assays are received and compiled.
Figure 1: UMC Pilbara Iron Ore Tenements
Please direct enquiries to:
Jim Richards - Phone (08) 9481 0911 Matthew Hogan - Phone (08) 9481 0911
Chief Executive Officer Executive Director – Commercial/Corporate
BSc Hons (Geology), MAusIMM

===========================================================

18th June 2007
The Manager
Companies Announcement Office
ASX Limited
Level 4
Bridge Street
SYDNEY NSW 2000
Via Electronic Lodgement
Dear Sir / Madam
PLACEMENT
United Minerals Corporation NL (UMC) is pleased to announce a placement of
4,500,000 ordinary fully paid shares @ $0.75c each.
The issue is subject to formal documentation and will be predominantly subscribed to
by Institutional Investors.
An Appendix 3B will be lodged in due course.
Yours sincerely
UNITED MINERALS CORPORATION NL
Matthew Hogan
Executive Director


----------



## dj_420 (18 June 2007)

yes UMC now looking good, started drilling so we just have to sit back and watch results come from jocelyn, camp hill and camp hill west.

also good to see a placement at 75 cents. should set a nice floor IMO and coincidentally is pretty much the bottom of the retrace we had from highs of $1.10.

extra cash for drilling and some institutional investing is always good. cant wait till they start proving up some of those historical resources from goldfields original estimates.


----------



## dj_420 (20 June 2007)

UMC chart looking like a double bottom formation or teacup, how long does it need to be a double bottom?

anyway trading range around 15 cents in this short term channel. has tested support line on a number of occassions and sellers have failed to see it close below it. has broken through the tope of the trading range on todays action.

IMO i would like to see $1 broken and held. although no real definitive resistance there i would think that the $1 point is a phsychological barrier more than anything. next point of resistance would be the 1.10 mark. which is the altime high.

MACD looks like it has just crossed over (or about to).


----------



## dj_420 (21 June 2007)

broke through the $1 mark and $1.10 also. closing at an alltime high today actually making the high on close at $1.135.

sellers were few and far between for a great deal of the day. from here want to see sp hold the $1 mark.


----------



## maxi68 (24 June 2007)

Another strong close for Friday 22 June'07 @ $1.21 Seems that its running in a strong bull run in current conditions and the coming week will see more of the same as drilling continues for the next 2 weeks or so, further results pending about 3 -4 weeks after the conclusion of drilling , as announced by the Company. We should see the price continue to rise as its been doing consistently.... there has been a big function for all UMC share holders at the panorama house at Bulli ....a couple weeks back now, for the $1target price( a lot of flaming Sambuca's were drunk that night with many burnt lips to go with the dare, over all fun had by all ) . Another function is set to be held in Broom for the $2 target price... this stock is very hot at the present and things look like getting hotter. So far its risen 0.355c since 15 June'07(6days of trade)


----------



## moses (29 August 2007)

UMC resisted the trend quite strongly today with a 23% rise; and golly goodness me, look at the after market depth queue! Only 2 real sellers left!

No news of course...


----------



## juw177 (31 August 2007)

I see people only post in this thread when the SP is doing well. So whats in stall for UMC? The last 2 days have seen some big bars. A strong one followed by a weak one. 60c looks to be support.


----------



## Santoro (12 September 2007)

On 22 Aug ann stated that results from Pilbara Iron Ore project would be released once received and assessed, surely this is not too far off?


----------



## dj_420 (12 September 2007)

juw177 said:


> I see people only post in this thread when the SP is doing well. So whats in stall for UMC? The last 2 days have seen some big bars. A strong one followed by a weak one. 60c looks to be support.




i have not been posting since i sold out before the last correction, got out around avg of 90 cents, original purchase at 30 cents so not too bad.

in hindsight i should have jumped back in when they were back down to 40 cents!

this company has incredible tenements, however considering the markets now this company does not match my risk profile, i pumped money back into GBG who have proven resources and JV partner.

good luck to longs


----------



## kransky (12 September 2007)

with than many targets drilled on great tenaments in a rich iron ore area i expect the results to be good!

and as a safety net the bauxite agreement/MOU must have this company worth more than the current 80M..


----------



## spooly74 (13 September 2007)

kransky said:


> with than many targets drilled on great tenaments in a rich iron ore area i expect the results to be good!
> 
> and as a safety net the bauxite agreement/MOU must have this company worth more than the current 80M..




Short term it`s all about the initial results from the iron ore, the drilling was only to about 50m but covered a large area, some decent hits here would be a fantastic start.
As for the bauxite, it has the makings of quite an impressive safety net.
Below is an article from the FR about a month ago.
(Broken up for file size)


----------



## kransky (21 September 2007)

up around 8% to 68c on larger than normal volume today... might be a sign that the iron ore drilling results are going to be released very soon.. or the bauxite talks are going really "well"


----------



## yuyry002 (29 September 2007)

Hi all im new to this forum and this is my first post (im here to learn and make money)



kransky said:


> up around 8% to 68c on larger than normal volume today... might be a sign that the iron ore drilling results are going to be released very soon.. or the bauxite talks are going really "well"




Been holding umc for a while and im still waiting for those iron ore drilling results. Hopefully its good results.


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## kransky (29 September 2007)

well its finished the week at 94c. 
We just have to wait and see... it was 194 drill holes so i guess that is a lot of lab work.... 

but isnt this a pretty picture?


----------



## yuyry002 (4 October 2007)

still no ann out.dont know how long do we have to wait.

going very strong this afternoon from low 0.84 to 0.935 now.maybe ann is very close.

holding


----------



## Broadside (4 October 2007)

My guess is we'll see an announcement in the next week or so...not far away at all.  Fingers crossed but no reason to think it will be bad.


----------



## yuyry002 (4 October 2007)

finished at 0.97 today. going really strong this afternoon.

dont what was going on today but it is definitely a good sign.


----------



## kransky (12 October 2007)

Quarterly is out. It says the Iron Ore drilling results will be out next week.

could be a big week


----------



## aussieboy2010 (14 October 2007)

Has the ship sailed on this one? 

Price could start at a premium tomorrow when the market opens as traders get in anticipating/hoping for a great report.


----------



## spooly74 (15 October 2007)

aussieboy2010 said:


> Has the ship sailed on this one?
> 
> Price could start at a premium tomorrow when the market opens as traders get in anticipating/hoping for a great report.




Sure did aussie ... Big gap up today to $1.40 past all time high.

Interesting to see if it can hold onto the gains through the day


----------



## michael_selway (15 October 2007)

spooly74 said:


> Sure did aussie ... Big gap up today to $1.40 past all time high.
> 
> Interesting to see if it can hold onto the gains through the day




Does anyone know the mine life of UMC and when it is expected to be producing?

thx

MS

*United Minerals Corporation NL (UMC, formerly United Kimberley Diamonds NL) is an exploration company with the projects located in Western Australia. The company added iron ore and bauxite to its diamond exploration interests and consequently changed its name in November 2006.*


----------



## spooly74 (15 October 2007)

michael_selway said:


> Does anyone know the mine life of UMC and when it is expected to be producing?
> 
> thx
> 
> ...




No resource yet Michael.

The current hype I suspect is over Iron Ore results due from 'Jocelyn'.

Map of their tenements and neighbours.


----------



## Santoro (15 October 2007)

michael_selway said:


> Does anyone know the mine life of UMC and when it is expected to be producing?
> 
> thx
> 
> ...




thx - funny cause THX own 20% of UMC...maybe not funny depends on your sense of humor..............................


----------



## aussieboy2010 (16 October 2007)

spooly74 said:


> Sure did aussie ... Big gap up today to $1.40 past all time high.
> 
> Interesting to see if it can hold onto the gains through the day






Got in at $1.38, certainly risky since i'm going off a high base. Trading halt atm on UMC, hopefully good news either tomorrow or Thursday. THX holds a lot of UMC stock so if you're bullish on this one then THX might be a way to get in through the back....


----------



## Broadside (16 October 2007)

aussieboy2010 said:


> Got in at $1.38, certainly risky since i'm going off a high base. Trading halt atm on UMC, hopefully good news either tomorrow or Thursday. THX holds a lot of UMC stock so if you're bullish on this one then THX might be a way to get in through the back....




the drums are beating loudly that this is going to be a ripping result tomorrow morning, good luck to holders.  :


----------



## wipz (17 October 2007)

Broadside said:


> the drums are beating loudly that this is going to be a ripping result tomorrow morning, good luck to holders.  :




If this is the case UMC will definately have a ripper of a day.  See attached chart, SP today has smashed upper band & MACD looking very strong.


----------



## Sean K (17 October 2007)

wipz said:


> If this is the case UMC will definately have a ripper of a day.  See attached chart, SP today has smashed upper band & MACD looking very strong.



RSI is in overbought territory too and it's shot out the top of the BB. Caution is warranted IMO if thinking short term trade.


----------



## Broadside (17 October 2007)

kennas said:


> RSI is in overbought territory too and it's shot out the top of the BB. Caution is warranted IMO if thinking short term trade.




I believe what happens today will be determined by the fundamentals revealed in the drill results 

It's the age old argument.  I agree it is best to be prudent but it has excellent prospects going forward.


----------



## BigJohnny (14 November 2007)

Norsk Hydro has taken 75% partnership with UMC to recover bauxite and produce alumina in WA. 

http://money.cnn.com/news/newsfeeds/articles/newstex/AFX-0013-20938618.htm


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## kransky (15 November 2007)

yes.. and the SP did practically nothing in response to it.. this stock seems much unloved after those initial drilling results..


----------



## tony73 (31 December 2007)

What are the thoughts on this stock for 2008, where will it go. Its certainly finishing the year off with a bang.


----------



## Broadside (10 January 2008)

tony73 said:


> What are the thoughts on this stock for 2008, where will it go. Its certainly finishing the year off with a bang.




It flies under the radar of most in the market but its location is hematite central with rail infrastructure.  Just produced more outstanding drill results open to north, east and west...low impurity.  They need to quantify tonnage and then every man and his dog will be on it.

I reckon it will at least double this year, not factoring in good news on the bauxite front with the JV with Norsk Hydro, which could be massive in its own right.

=========================================================

ASX Release 10 January 2008 ASX Code: UMC
PILBARA IRON ORE PROJECT
RAILWAY PROSEPCT DELIVERS OUTSTANDING HIGH GRADE DIAMOND DRILL ASSAY RESULTS
HIGHLIGHTS
Outstanding high-grade drill results from the recent diamond drilling program are as follows:
• 36.0m at 63.2% Fe from 40.7m in hole UI034 (includes 12m at 65.0% Fe from 43m)
• 23.4m at 63.2% Fe from 74.6m in hole UI031
• 20.3m at 62.2% Fe from 43.0m in hole UI033
• 13.2m at 59.1% Fe from 46.0m in hole UI032
• The results confirm the continuity of high-grade iron ore mineralisation between drill holes UI031 and previously reported UI035 (20m at 61.1% Fe from 35m)
• Significantly, mineralisation is open to the north of UI031 as well as to the east and west of all drill holes
• The high grade intersections all have corresponding very low levels of Si02, Al2O3 and P, confirming the mineralisation to be high grade direct shipping Mara Mamba ore.
COMMENT
The Directors are highly encouraged by these results. The mineralisation is now shown to be thick, continuous and of very high grade. This result has a material impact on the scoping study that is currently in progress.
Diamond drilling is scheduled to recommence around the 20th January 2008. With the excellent results in all holes, the priority is to drill both north of UI 031 to determine the northerly extent of mineralisation.


----------



## tony73 (10 January 2008)

Yes, I am extremely happy with the ann but can't work out why there was a sell off at the end of the day? Is this going to happen after every drill result? Obviously tonnage is the key!


----------



## Broadside (11 January 2008)

tony73 said:


> Yes, I am extremely happy with the ann but can't work out why there was a sell off at the end of the day? Is this going to happen after every drill result? Obviously tonnage is the key!




I can't see anything wrong with the results that would warrant a sell off but it usually happens when they release good news, only to run higher later.  The odds are very much in favour of a substantial high grade resource at Railway but only further results can prove that.  I am very much looking forward to further results that define the resource plus the scoping study plus the 20,000 m drill program....Railway is but one of their prospects.  This is my biggest holding by a long way.


----------



## tony73 (6 February 2008)

Starting to fight back well. Sellers are starting to drop off. Might be news on the way, thats how it normally works with this stock eh!


----------



## Broadside (21 February 2008)

tony73 said:


> Starting to fight back well. Sellers are starting to drop off. Might be news on the way, thats how it normally works with this stock eh!




They announced today a target 100m tonnes ore after 40m visible mineralisation.  That's Railway alone, they have plenty more targets to drill.  Glad to see someone else at ASF following this one.


----------



## Santoro (1 March 2008)

Broadside said:


> They announced today a target 100m tonnes ore after 40m visible mineralisation.  That's Railway alone, they have plenty more targets to drill.  Glad to see someone else at ASF following this one.




UMC looking good, positive samples at the railway prospect indicating a possible 100 million tonnes of DSO. Directors believe the discovery is impotant and significant enough to commission the first phase of a pre-feasibility study which is based on accessing the Fortescue Metals multi-user railway located 110km north of the prospect and associated multi-user port facilities at Port Hedland.

Given that Mount Gibson Iron Ore (MGX) publicise _from recent geological surveys and resource in-fill drilling programs that Koolan Island has resources of 62.8 million tonnes @ 63.2% Fe, including reserves of 29.9 million tonnes at 64.8% Fe.  the Extension Hill Hematite deposit has JORC-compliant Probable Reserves of 12.8 million tonnes and Resources of 19.5 million Tonnes,and with Tallering Peak already operating at its targeted hematite production rate of 3 million tonnes per annum (Mtpa)._

Given that MGX has a market cap in excess of 2 billion and UMC at 110 million there is plenty of upside here considering the iron ore deposit may be of a similar quantity/quality and infrastructure as relatively convenient.


----------



## haemitite (1 March 2008)

Santoro said:


> UMC looking good, positive samples at the railway prospect indicating a possible 100 million tonnes of DSO. Directors believe the discovery is impotant and significant enough to commission the first phase of a pre-feasibility study which is based on accessing the Fortescue Metals multi-user railway located 110km north of the prospect and associated multi-user port facilities at Port Hedland.
> 
> Given that Mount Gibson Iron Ore (MGX) publicise _from recent geological surveys and resource in-fill drilling programs that Koolan Island has resources of 62.8 million tonnes @ 63.2% Fe, including reserves of 29.9 million tonnes at 64.8% Fe. the Extension Hill Hematite deposit has JORC-compliant Probable Reserves of 12.8 million tonnes and Resources of 19.5 million Tonnes,and with Tallering Peak already operating at its targeted hematite production rate of 3 million tonnes per annum (Mtpa)._
> 
> Given that MGX has a market cap in excess of 2 billion and UMC at 110 million there is plenty of upside here considering the iron ore deposit may be of a similar quantity/quality and infrastructure as relatively convenient.



I hold both

But their markets caps are in noway directly comparable. MGX is in the market now, and has no transport infrastructure at all to worry about at Koolan. UMC are still proving up what looks to be an excellent resource - but the transport issue needs to be resolved


----------



## Santoro (2 March 2008)

haemitite said:


> I hold both
> 
> But their markets caps are in noway directly comparable. MGX is in the market now, and has no transport infrastructure at all to worry about at Koolan. UMC are still proving up what looks to be an excellent resource - but the transport issue needs to be resolved




Agreed haemitite, I did mean upside over time (although not stated), MGX and UMC may have similar size resources  at different stages of development/production, however with the chinese looking to acquire MGX and CFE (32% magnetite) and UMC having tenements in the bauxite zone of the Kimberleys with an MOU already signed with Norsk Hydro if significant resources can be proven for a smelter, you couldn't discount that the chinese may take a strategic look at UMC.


----------



## Broadside (6 March 2008)

They've identified a good potential target with aeromagnetic survey, Jumbo Junction, gives them a focus for their big drilling campaign commencing soon.  Very close to BHP Area C.  haemitite, if you read this, how reliable is this kind of survey in picking a target?  They reckon it has a bigger signature than the Railway prospect.  thanks.


----------



## Markcoinoz (30 March 2008)

I am surprised there hasn't been a lot more interest in UMC.
Obviously the market is interested.

Anyone have an idea if we are due more results to come through before the Jorc?  Update on top 20 shareholders which comes out within the next couple of days may give us some indication where the accumulation is coming from.

Cheers markcoinoz


----------



## Markcoinoz (31 March 2008)

Just finished reading a fantastic report on the future for UMC.

Amazing assets and good liquidity.


http://www.minesite.com/fileadmin/c...r_08/United_Minerals_Corp_-_28th_March_08.pdf

Ocean Equities Report.

Magix from another forum first posted it.

20 pages of riveting stuff.

Excellent read.

If you were planning on holding UMC for the medium to longterm i doubt you would not see a multi-bagger.  Stronger for longer.

They have given a short term price of $2.39 (Conservative) with a review after the Jorc comes out within the next few months. 



Cheers markcoinoz


----------



## Broadside (2 April 2008)

hi markco, for a while there I thought I was talking to myself, at least there are a few of us out there!  more high grade drill results today and identified a further 14 targets, that should keep their hands full.  I want to see them drill Jumbo that could be interesting.  Definitely a long term hold for me.


----------



## Markcoinoz (2 April 2008)

Hi Broadside,

Good to see you posting.

UMC is my favourite longterm stock with the most potential in the I/O sector.

I bought some more this morning on open.

This Opes Prime mess has kicked it around a bit.

Yet, very strong fundamentals going forward.

Just finished reading the announcement.

Appears pretty good and overall average still pretty close to the 60% Fe.

Its interesting no mention of Jumbo.

Given their last announcement they sounded very keen to drill a few holes and find out how big it is.

Could they be leaving the Marra Mamba to last given the interest that UMC has generated with its high grade I/O so far and of course its positioning around the majors?

We don't want to see a T/O too early in the piece now do we

If the Railway can prove up 100mln tns and then we have the others this stock could easily get there.  Thats why i am in accumulation mode for my SMSF.

That Ocean equities report was brilliant.
Yet the stock got sold down.

What a joke.

Cheers markcoinoz


----------



## robert toms (2 April 2008)

Well I bought a small parcel of these today..Had been watching them for a few months,and todays promising announcement was enough for me take the plunge.
I have not had a mining share since Western Mining sold out to BHP,just before the mining boom....rats timing that was.
I looked at Territory iron,but their resource seemed limited,and UMC seems to have a lot more potential.
I hope that we all enjoy the ride !


----------



## Markcoinoz (2 April 2008)

Hi robert toms,

I have hung onto BHP over the years through thick and thin.

Olympic Dam was a major milestone for BHP.

IMO, you have made a wise choice if you plan on holding UMC for the longterm.  Short term it will do well.  

However, the spoils are a couple of years down the track where the real money is likely to be made IMHO.

In the Report i posted:


http://www.minesite.com/fileadmin/co...h_March_08.pdf

Page 1:

The general strategy of the company is to develop its iron ore prospects in the medium term which will help fund the development of its bauxite/alumina assets in the medium/longer term. UMC's iron ore assets have the potential to develop the company into a multi-million dollar enterprise, whilst its bauxite JV has the potential to create a multi billlion dollar company.

Pretty impressive when you consider that this fledgling has a JV with Norsk Hydro being the third largest integrated Aluminium producer in the world.

When i first checked them out, my interests were in the I/O only.

However, it soon became apparent the importance of the JV with Hydro.

It still has a low M/C with massive upside for both I/O and Bauxite.

As well, it has a very switched on Management Team that can get it there.

I also read up on TTY.  Even though they will be hunting for T/O's, what put me of was when TTY bought into WVL.

MK joins WVL board as Chairman and then dumps them less than 2 months later making a $4mln profit for TTY along the way.  

That type of thing does not give me good vibes even though they did well out of it.

IMO, UMC are a better long term investment.

Cheers markco2


----------



## robert toms (2 April 2008)

Thanks for that...yes I read that report a few posts back before I bought...no I do not expect anything rapid with these...If they build a rail spur,if feasible,will be a couple of years at least.Not that there is any comparison in the size of resourse,but Fortescue ,I believe,have not made a cent as yet and ther SP went bonkers....we all hope that China keeps on keeping on with their demand.
Someone has been reading the posts on UMC after all! and I will keep on reading them.


----------



## Markcoinoz (3 April 2008)

Hi robert toms,

This is an addition to the other report i posted.

It covers UMC along with other I/O hopefuls.

I also posted it in the general I/O thread as i believe it was relevant.

A good read.

http://www.capelam.com.au/aurora/assets/user_content/File/IN003_IronOreSectorReview_March08.pdf

Cheers markcoinoz


----------



## vine (10 April 2008)

I am fairly new to trading and can't work out why UMC  has fallen 30% in the last week or so, there has been no ann.  I have been watching this share and thought it would be a good buy around $1 but am I missing something that could cause this drop. Thanks for any info.


----------



## Markcoinoz (10 April 2008)

Hi Vine,

I too am perplexed as too why this selling has been happening.

At first, i thought it might be some of the Opes fallout.

However, considering the London Roadshow it could be C/R.

Apart from the I/O, they also have the 25% JV with Norsk Hydro for Bauxite.

I am just wondering if it would be for the Phase 1 & 2 of the Mitchell South Plateau project as they did mention a wide area drilling reconnaissance in the January Quarterly for the field season 2008.

Just the other thing to note, in the original JV, UMC did state:

"UMC is confident of maintaining its 25% share despite the project's very large size potential with estimated multi-billion dollar capital requirements."

I would expect a big drain on funds especially if they are wanting to fast track the project to capture the expected increase in Bauxite prices over the next few years.

Thankfully, Hydro are wearing the greater burden of the Feasibility Studies once they get to that point.

IMO, its still one of the best long term I/O stocks with top class management.

Both projects are first rate.

If i had some more funds i would be looking at topping up around this level.

Unfortunately i don't

Therefore, i will seek patience

Cheers markcinoz


----------



## Broadside (10 April 2008)

vine said:


> I am fairly new to trading and can't work out why UMC  has fallen 30% in the last week or so, there has been no ann.  I have been watching this share and thought it would be a good buy around $1 but am I missing something that could cause this drop. Thanks for any info.




I'm old to trading and can't for the life of me work it out either.  Frustrating as hell.  

markco you may be right but haven't heard any whispers of a capital raising.  Nothing seems to make sense the JORC has been brought forward which should increase the urgency to accumulate.


----------



## Markcoinoz (27 April 2008)

Hi Broadside,

Since there has not been any discussion for 2 weeks i thought i would bring it back up the top.

Good to see that UMC has rallied again over the last fortnight.

Before the plunge, there were a lot of Bot trading which looked like accumulation.  Over this last week, the Bot has been back again.

Is there a major seller and accumulator?
Perhaps the updated Top 20 will shed some light on it.

If you look at Friday's trades there were a lot of very small trades and then there were a couple of very good trades around 11.20am.  Actually, that was the heaviest time of trading between 11 -12. 

I will have a look in the morning and see if there is similar trading around that time frame.

Expecting a good week ahead.

Cheers markcoinoz


----------



## Broadside (29 April 2008)

hi markco, looks like the bot is at it again today, I suppose we should be flattered, now that I have all the want I am hoping the handbrake gets released soon!  the quarterly last night looked good and bauxite drilling expected next quarter....bungy still reckons we're in line for 100m-ish tonnes as you would have seen.

Plenty to look forward to, I just need to fund my options conversion.


----------



## Markcoinoz (1 May 2008)

Broadside said:


> hi markco, looks like the bot is at it again today, I suppose we should be flattered, now that I have all the want I am hoping the handbrake gets released soon!  the quarterly last night looked good and bauxite drilling expected next quarter....bungy still reckons we're in line for 100m-ish tonnes as you would have seen.
> 
> Plenty to look forward to, I just need to fund my options conversion.




Hi Broadside,

It looks like the BOTS have had their fill and gone away in May.  

Hope so.

Yesterday was the start of the breakout IMO.

Today's volume seems to confirm it.
1.13mln shares traded to close at 1.45.

Noticed the options are trading at a decent discount now.
1.17

Doubt that will last long.

Has been a couple of good sessions with alot more to come.

Enjoy the ride

Cheers markcoinoz


----------



## Santoro (2 May 2008)

Markcoinoz said:


> Hi Broadside,
> 
> It looks like the BOTS have had their fill and gone away in May.
> 
> ...




Volume solid today, admittedly a strong across the board, but has been strong for the last few days for UMC.


----------



## Markcoinoz (2 May 2008)

Santoro said:


> Volume solid today, admittedly a strong across the board, but has been strong for the last few days for UMC.




Hi Santoro,

Yep, it has has finally broken through.

The BOTS were running hot again this morning knocking everything down in its path.  However, after lunch time the Bots disappeared and the buyers started soaking up the sellers.  A key resistance target got broken at 1.60.

Finished for the day @ 1.605 with 2.82mln traded for the day.

Looking very positive for next week.

Someone on another forum also mentioned there might be a Broker Report coming out within the next week or two.

I would be surprised if there is a Broker Report coming out given we are so close to the all important Railway Jorc announcement.

Cheers markcoinoz


----------



## robert toms (2 May 2008)

What are the bots ?
I see that the options are up to $1.37.Anyone know what price and date they are exercisable etc.
I did a search but could not find the info....anyone know where to find it.
So far so good with this one...plenty of blue sky


----------



## Markcoinoz (2 May 2008)

Hi Robert Toms,

Here is a handy sight to bookmark anytime your wanting to find out if a company has options.

http://tradingroom.com.au/apps/qt/quote.ac?code=UMCO

They expire July 2008  Exercise price .20

BOTS = Algorithmic Trading

Sometimes used by Brokers.

They set a string of small buy and sell parcels which automatically triggers when it reaches the price the Broker wants.  You will usually see very small parcels of shares.  Sometimes, they can be buying and selling to themselves to make it look like active trading.  As well, they don't pay brokerage fees.

Therefore there is no cost to them.

UMC has been riddled with Bot trading for along time.

With small trades they can force the price up or down.


However, the most important thing to realise is they are there to serve a purpose.  There has been a lot of accumulation recently.  That is also why you would have seen Becoming a Substantial Shareholder notice in yesterday in the ASX announcements.

Its not a level playing field no matter what the Corporate Watchdog says.

BOTS are used to shake out the loose sellers to accumulate shares for their clients.

Its not a big issue if you are holding long term.

However, it is annoying watching the games being played.

Cheers markcoinoz


----------



## Santoro (3 May 2008)

Markcoinoz said:


> Someone on another forum also mentioned there might be a Broker Report coming out within the next week or two.
> 
> I would be surprised if there is a Broker Report coming out given we are so close to the all important Railway Jorc announcement.
> 
> Cheers markcoinoz




markco

Yes, it is getting close to the JORC for the Railway Prospect and fortunately the second drill rig may ensure this happens as announced. Should the JORC confirm around 100 million tonnes *DSO*, this would put UMC [market cap @ 186 million] with similar iron ore reserves to say MGX [market cap 2.5 billion] and with production expected to begin in late 2009 one could assume over the next twelve months that UMC will continue to appreciate.

Will be good to move one of the drilling rigs to Jumbo Junction which is along strike from BHP's Area C (5km east of JJ) and confirm the aeromagentic indication that it may be a similar size to the Railway Prospect.

This will put UMC in an enviable position moving forward over the next couple of years, what with the huge JV opportunity with Norsk Hydro in the Kimberleys. Should energy prices continue to rise which seems likely and the abundance of energy off the Kimberley coast, UMC seems a likley strategic play of the future.


----------



## Markcoinoz (3 May 2008)

Hi Santoro,

The I/O will take care of itself for future funding with Norsk Hydro.

IMO, the Bauxite potential is outstanding if they can pull it of.

The difficulty will be the sensitive issue of the environment around the Mitchell Plateau.  I was reading a report not that long ago that predicts Aluminium demand will be increasing from 2009-10 onwards.  Its a long bow for UMC.
But it is one that would make UMC a major in years to come if they were successful.

Regarding the Railway, i am hoping for between 50 - 100 mln tns initial Jorc.

Even though they have stated they are aiming for 100mln tns, more often than not JORCS tend to be overstated in the initial run up.  

Even 50mln tns of DSO would still be an outstanding result.

Have they mentioned when they will start drilling Jumbo?

Its in a prime position.

Something else to keep an eye on is the I/O contracts for China - BHP/RIO.
I read they are aiming for 84%.  If that becomes the case, it will be a first for  a major to not conform to other majors who agreed to 71% increase.
The contracts must be agreed to by June 30th. 

Excellent times for outstanding juniors.

Cheers markcoinoz


----------



## robert toms (4 May 2008)

Thanks for that Marknoinoz...I shall look further .When these prices move without any further info,either someone has info or someone is playing games!


----------



## Broadside (7 May 2008)

robert toms said:


> Thanks for that Marknoinoz...I shall look further .When these prices move without any further info,either someone has info or someone is playing games!





It's a long overdue rerating plus the fact that iron ore prices are set for further substantial rises this year.  I think UMC is slowly but surely getting on the radar of more investors looking for quality ore (high grade DSO) close to production.  We can expect a JORCed resource released in combination with a scoping study in the next couple of months so it's not surprising we are seeing rises on little news: time is running out for early bird investors to jump on board.


----------



## Broadside (21 May 2008)

they've completed Phase 1 drilling program of Railway and commencing Phase 2.  JORC will be released for Railway in late June/July ditto scoping study.

Unfortunately this isn't exciting news, all they are doing is drilling holes and finding Fe, the market would have preferred if they just left it undrilled and peered over the neighbour's fence and announce some "conceptual" targets a la FDL and EPS.


----------



## spooly74 (21 May 2008)

Broadside said:


> they've completed Phase 1 drilling program of Railway and commencing Phase 2.  JORC will be released for Railway in late June/July ditto scoping study.
> 
> Unfortunately this isn't exciting news, all they are doing is drilling holes and finding Fe, the market would have preferred if they just left it undrilled and peered over the neighbour's fence and announce some "conceptual" targets a la FDL and EPS.




LOL ... maybe they need to buy one of these new fancy computer programs.

The appropriate boxes are getting ticked mate. Can`t fault managment at all.
Phase 2 infill had already commenced.



> RAILWAY PROSPECT
> PHASE ONE DRILLING COMPLETED
> LOGGING SHOWS WIDESPREAD IRON ORE MINERALISATION
> The company is pleased to announce that the Phase One drilling program on a 100m by 160m grid at the Railway Prospect has been completed. This has involved 110 holes of RC drilling for 10,015 metres.
> ...


----------



## Broadside (21 May 2008)

good to see you're still on board spooly!

the next big question once Railway is defined is what does Jumbo Junction hold?

the X factor is the bauxite JV with Norsk.  Happy days anyway for the Fe alone.

Worst case scenario they road haul 2mtpa initially and build a rail spur.  Scoping study may answer a few questions for us, if I recall correctly they modeled for 2mtpa and 5mtpa.


----------



## Santoro (21 May 2008)

Broadside said:


> good to see you're still on board spooly!
> 
> the next big question once Railway is defined is what does Jumbo Junction hold?
> 
> ...




_The following project development concepts will be examined:
•
A 2 million tonne per annum direct shipping ore (DSO) operation using contract mining, crushing and screening, with road haulage of the DSO products to a railhead on the multi-user FMG railroad for rail freight to Port Hedland for export.
•
A 5 million tonne per annum direct shipping ore (DSO) operation using contract mining, crushing and screening, with a purpose built spur rail haulage of the DSO products to connect with the multi-user FMG railroad for rail freight to Port Hedland for export.
•
A 10 million tonne per annum direct shipping ore (DSO) operation using contract mining, crushing and screening, with a purpose built spur rail haulage of the DSO products to connect with the multi-user FMG railroad for rail freight to Port Hedland for export._

If the numbers turn out big enough and Jumbo Junction results (no drilling yet) are similar to the Railway Prospect only then would you think 10mtpa would be considered an option.


----------



## Markcoinoz (22 May 2008)

Updated version of the Ocean Equities Report as of 21st May 2008.

http://www.minesite.com/fileadmin/content/pdfs/Brokers_Notes_May/UMC_Iron_Ore_Update_-_210508.pdf

All coming together now.

Looks like June/July are going to be exciting times.

Cheers markcoinoz


----------



## Markcoinoz (23 May 2008)

Good to see a few here are still in UMC.

Today's action i feel is just a precursor as UMC stretches it's legs in preparation for the main run.

I am very encouraged as to the way management has kept us informed without any hype.  They have a very good idea as to what can be expected for our maiden Jorc.  

Anywhere around 100mln tns will be fantastic.

The best part is thats only the beginning.

This was taken from the above Ocean Equities Update:

Phase 1. Full essay results expected to be sufficient to enable an inferred Jorc compliant resource calculated by early July.

Phase 2. Infill drilling original Railway target zone 50 RC holes 100m x 80m grid to be complete by mid june. Expected to be sufficient for an Indicated Jorc compliant resource expected to be calculated by end of July.

After Phase 2 programme is complete at Railway it is expected the drill rig will be used to accelerate UMC's exploration activities with Jumbo Junction - Northern CID prospects and Railway East prospect.

Key Events/Valuation Triggers:

Raiway - phase 2 drilling programme is ongoing and expected to be complete mid-June. The programme includes a further 5,000m of RC drilling, at 100m x 80m grid, which should be sufficient for an indicated Jorc compliant resource.

Railway - Announcement of a maiden inferred Jorc expected late June/early July.

Railway - Announcement of indicated Jorc expected late July.


Railway - Full scoping study to be published once a Jorc compliance report is completed which is expected to lead to a further acceleration in the development of the Railway project. (eg: Port & Infrastructure Negotiations)

14 new exploration targets - Low level geophysical surveys and ground geophysics have been commissioned and expected to be complete in June to outline further detailed drill targets

Exploration drilling - diamond drilling is expected to commence in July at Jumbo Junction, Northern CID deposits and Railway East Prospect.

Bauxite Project:

Kimberley drilling programme is scheduled to commence in mid-June 2008.

On going WA Government review on the future of the Mitchell Plateau Bauxite project temporary Licence.


Then you add on top of that:

4 high priority Marra Mamba targets (Includes Jumbo Junction)
A large Channel iron deposit target
7 further Marra Mamba targets
2 Brockman iron ore tagets

That can only mean alot of exciting times ahead.

Then of course down the track the Bauxite will come into play.

We have a very piddly shareprice IMO with enormous upside.

Cheers markcoinoz


----------



## rob (24 May 2008)

Broadside said:


> good to see you're still on board spooly!
> 
> the next big question once Railway is defined is what does Jumbo Junction hold?
> 
> ...




Have been listening and reading interesting things about UMC, as well as cfe. hace got some ago and would like to own some umc too for the long hall, what do you think


----------



## Atma (24 May 2008)

i also have just made my first post on the Ferraus(FRS) thread. UMC is bearing similarities to FRS. I have mainly these two in my shares account . Lets see how they go long term.

UMC is a bit closer to FMG than FRS, has similar ore(60% marra mamba )

tonnage also looks like 60-80mT @ railway could be higher. i am more interested in their other targets. progress has been good , they drilled railway in only 1 month.


----------



## Broadside (24 May 2008)

rob said:


> Have been listening and reading interesting things about UMC, as well as cfe. hace got some ago and would like to own some umc too for the long hall, what do you think




Hi rob, personally speaking I intend to hold UMC for the long haul.  Railway is the first resource but they have targeted many others for further investigation (eg Jumbo Junction), and they're in the right neighbourhood to find plenty more iron ore.  I think it's only early days.

First things first though - JORC the Railway resource and get it into production, then let the exploration upside unfold in time (and the bauxite).


----------



## xabialonso (26 May 2008)

continuing the upward move today..and i agree this one is a keeper.

anyone know anything about this major shareholder?

A.


----------



## Broadside (26 May 2008)

xabialonso said:


> continuing the upward move today..and i agree this one is a keeper.
> 
> anyone know anything about this major shareholder?
> 
> A.





Not really.  But Bahrain has a sizeable aluminium industry because of their access to cheap energy, I wonder if that fits into the puzzle.  They were the recipients of the placement at $1.70.

Anyway it's good news and puts more of a squeeze on a tight share register.


----------



## Markcoinoz (26 May 2008)

Al Rajhi Group

Al Rajhi Holdings W.L.L. and Al Rajhi Partners (together "Al Rajhi") represent the business interests of Sheikh Abdulrahman Saleh Al Rajhi and his immediate family in Saudi Arabia.

Al Rajhi has a substantial portfolio of assets under management, comprising investments in financial services; infrastructure; telecoms and utilities; real estate; oil, gas and petrochemicals. Key investments include Bank Al Bilad, DanaGas; Saudi Telecom; Saudi Cement Company (Khalid al Rajhi, CEO of Al Rajhi, is a director of each of these companies);

I think i will just call him "Sheikh Raj" for short.

Welcome to the party Sheikh Raj.

Cheers markcoinoz


----------



## Markcoinoz (28 May 2008)

United Minerals ges positive assays at Railway
09:56, Wednesday, 28 May 2008

Sydney - Wednesday - May 28: (RWE Aust Business News) - United
Minerals (ASX:UMC) has assay results from 21 of the 110 hole phase one
drilling program at the Railway prospect.
The results form the basis for the ongoing inferred JORC resource
calculation currently underway.
The company said two particular drill hole results,(the best in
the program so far), are regarded to be particularly noteworthy and
material.
These are 160 metres apart and give 79m grading 60.5pc iron (from
45m to 124m) with the hole ended in high grade material grading 65.6pc,
and 57m grading 63.1pc.
Both show low levels of impurities.
ENDS


Now, that is impressive.

Cheers markcoinoz


----------



## xabialonso (28 May 2008)

hey markcoinoz - do think there is a new strategy in play by UMC in play by providing ongoing updates? and if so why?..as this announcement really wasnt done out of necessity.

Xabi


----------



## Markcoinoz (28 May 2008)

xabialonso said:


> hey markcoinoz - do think there is a new strategy in play by UMC in play by providing ongoing updates? and if so why?..as this announcement really wasnt done out of necessity.
> 
> Xabi




Hi xabialonso,

In their announcement they made the point that they do not normally give progressive updates.  However, this was an exception given the size and quality of the grades.  They also made a point that they will need to drill deeper to see how far it goes.  As well, they also said that it was "Material".

Now how would you interpret that?

IMO it will be Material to the actual size and grading of the Initial and Indicated Jorc when they are released.  Initially they were aiming for a Jorc of 100mln tns for the Railway alone.  Given that we are looking at Marra Mamba with high grade and low impurities it is an excellent sign that we are well on track.

Al Rajhi Holdings W.L.L. must be feeling pretty comfortable knowing that they bought in at $1.75.

Its an extremely encouraging result.

I would be surprised if they announce further results until the maiden Jorc unless they find other Drilling that warrants further encouragement to the market.

Cheers markocinoz


----------



## xabialonso (28 May 2008)

Thanks for the insight markcoinoz - i have the feeling they are quitely confident of hitting the 100mt target as well. 

July for the madien JORC?

xabi


----------



## gfresh (28 May 2008)

I think 100mt will be on the low side now, but we shall see...  All DSO, dig out of the ground, straight on a ship. Very low costs. 

The results are exciting as well because it was 65% right down to end of depth 124m.. It's possible that there is more to play at depth that hasn't been drilled so far right across the tenement.


----------



## frogen (28 May 2008)

gfresh said:


> I think 100mt will be on the low side now, but we shall see...  All DSO, dig out of the ground, straight on a ship. Very low costs.
> 
> The results are exciting as well because it was 65% right down to end of depth 124m.. It's possible that there is more to play at depth that hasn't been drilled so far right across the tenement.




Great grades and at depth. Just what you want in an IO prospect. I also think it will be a larger than most expect. Just got to figure out the best way to get it to the port I guess. Hope this rail alliance works out.
 I hold


----------



## Markcoinoz (28 May 2008)

frogen said:


> Great grades and at depth. Just what you want in an IO prospect. I also think it will be a larger than most expect. Just got to figure out the best way to get it to the port I guess. Hope this rail alliance works out.
> I hold




Hi frogen,

I notice your not that far from the action being in Port Hedland.

The Railway is only the first cab of the rank.
Don't forget we have Jumbo Junction which hosts a larger signature than Railway and then we have Railway East - Southern Flank and many others to keep UMC very busy for along time to come Jorcing up high grade Fe.

As previously mentioned 100mln tns will be an excellent result.
Anything above that will be exceptional.

I also think our rail & port issues will be resolved very soon.

Which companies could be looking over our shoulders waiting to see just how big the resource and of course the grades are?  Well, i think FMG for a starter.

Lets face it, they don't need a resource with similar grades in comparison to their own resource.  However, higher grades would certainly add value to their lower grades.  

Then again, i don't think UMC management are going to rush into anything too quickly.  Too much unlocked value for that.

Nope, i feel the London Roadshow was a very good place to get the ball rolling
and for a few large institutions to get involved once the maiden Jorc is released.  Having "Ocean Equities" following UMC is a fantastic opportunity for UK investors to get on board.

We are only at the beginning stage imo.

Cheers markco2


----------



## frogen (29 May 2008)

Markcoinoz said:


> Hi frogen,
> 
> I notice your not that far from the action being in Port Hedland.
> 
> ...




Hi Markco2,
                Been up here for fifteen years and seen the IO industry in the first seven when they couldnt give the dirt away. A lot has changed in the last seven. At this end we see the shipping side of things and may I add, I think there will be some interesting times ahead with quite a few small Co's jostling for port and shipping access. The sooner the logistical details for transport a sorted by UMC, the better off they will be. Port Hedland has the potential for bottle necking with shipping, in the near term.
                UMC has been focused on they're IO tenement for quite some time now, just quietly drilling up a rescource.
               It will be interesting to look back in six years time and see who actually is shipping dirt and who isn't.
              As for us mug investors, will be interesting to see if we have made  decent quid out of these small companies. Thats what we are really here for ...     cheers


----------



## Broadside (29 May 2008)

frogen said:


> Hi Markco2,
> Been up here for fifteen years and seen the IO industry in the first seven when they couldnt give the dirt away. A lot has changed in the last seven. At this end we see the shipping side of things and may I add, I think there will be some interesting times ahead with quite a few small Co's jostling for port and shipping access. The sooner the logistical details for transport a sorted by UMC, the better off they will be. Port Hedland has the potential for bottle necking with shipping, in the near term.
> UMC has been focused on they're IO tenement for quite some time now, just quietly drilling up a rescource.
> It will be interesting to look back in six years time and see who actually is shipping dirt and who isn't.
> As for us mug investors, will be interesting to see if we have made  decent quid out of these small companies. Thats what we are really here for ...     cheers




that's an interesting insight frogen and it parallels what uio has alluded to on another forum.....that there are infrastructure bottlenecks and limited access to transportation, therefore it is the premium stuff that will get prioritised as it is highly prized for blending etc.  When push comes to shove some of the lower grade ore operations might face difficulties.  UMC seems well placed do you think?


----------



## Markcoinoz (29 May 2008)

Good evening Broadside and Frogen.

Just a couple of things.

Al Rajhi Holdings W.L.L. now owns 8.80% of UMC after today's announcement.

As well, it was mentioned on another forum that at the back of yesterdays Financial Review that Alan Birchmore was a guest of Twiggy's in China for the inauguration of the first shipment of I/O.

Frogen, i have heard about the possible bottlenecks that could very well happen.  That may also provide UMC to sell it at the gate.

One thing, if the Railway proves to be as big and as high grade as some of the results suggest, i tend to agree with Broadside that ours will be a priority above many hopefuls.  If yesterday's announcement is anything to go by we are in the box seat imo.

I am looking forward to what the scoping study mentions in regard to rail and port.

Good times ahead.

Cheers markco2


----------



## frogen (1 June 2008)

Markcoinoz said:


> Good evening Broadside and Frogen.
> 
> Just a couple of things.
> 
> ...




Markco2
             As far as the shipping goes, the Port Hed. Port Authority is supposed to have the new multiuser shipping berth up and going by the end of 2009. It should work in with UMC timeline, as long as there aren't too many delays. The biggest problem with this is that the construction times tend to blow out in this part of the world. The port authority's last expansion blew out by 6 or so months.
            From memory, 15 mt p/a available capacity so once up and running, should be ok. The individual companies enter into agreements with the port authority for shipping capacity so first in best dressed. 
           No doubt the management of all these IO juniors including UMC are well aware of these issues so by the time they get to releasing scoping studies, they should have these issues sorted.
        I hold                                            cheers


----------



## Broadside (10 June 2008)

PILBARA IRON ORE PROJECT 100% 
OUTCROPPING CHANNEL IRON MINERALISATION DISCOVERED AT 
YANDI HEADWATERS TARGET AREA 


The Company advises that outcropping Channel Iron mineralization has been discovered six kilometers north-east of the Company’s Railway prospect in the Pilbara Region of WA.  

Geological investigations were carried out in a target area identified on E 47/1429 as the potential headwaters to the Yandi Channel Iron deposits. The Yandi Channel Iron deposits, some thirty kilometers to the east, form major iron ore production centres for both BHPB (Yandi) and Rio Tinto (Yandicoogina). These two centres are producing over 80m tonnes per annum collectively of high grade iron ore from resources exceeding 2000 million tonnes of Channel Iron Deposit.  

Channel Iron deposits (CID) are exciting exploration targets with large tonnage and production potential. 

Reconnaissance work has outlined a twenty square kilometer target area for initial drill testing. Field mapping and sampling is underway to select initial drill targets.


----------



## Markcoinoz (11 June 2008)

Hi Broadside,

The Yandi Headwaters target area is 2.5 times the size of Rio's (Yandicoogina).

The market won't wake up until they see some drilling results.

Will be massive for UMC once we get an indication the sheer size of the resource.  That i would expect would be towards the end of he year.

I think they were dropping a bit of a hint.

"Channel Iron deposits (CID) are exciting exploration targets with large tonnage and production potential."

Cheers markcoinoz


----------



## Broadside (11 June 2008)

given the location of their tenements there was always a good likelihood they'd find a fair bit of iron ore (to put it mildly) but it looks like luck has smiled upon us.


----------



## Markcoinoz (18 June 2008)

Looking very promising Broadside.

Reached an intra-day high of 2.23.

Hopefully the $2 shackles have been left for dead along with the Bots.

Also noticed our cousin THX has shown a fair bit of interest today.
Still plenty more to come.  Wait till UMC really moves, then we should see some decent gains with THX.

We should finally have our maiden Jorc within 2 or 3 weeks.

You never know, it may surprise and come out earlier.

Cheers markco2


----------



## Broadside (24 June 2008)

this stock is an absolute powerhouse markco, those hits today are unbelievable.  This is only scratching the surface, they have a shallow 3km length target for priority drilling.

Gets better and better.  When we get the JORC in a week or two it will be a big green light for institutional buying but the share register is already tight as a fish's wattsit.  Could be fun.

============================================================

OUTSTANDING HIGH GRADE DRILL RESULTS / RAILWAY PROSPECT
Assay results for two further drill holes have been received that are particularly noteworthy and material. Holes UI 274 and UI 273 set new standards for Marra Mamba mineralisation discovered at the Railway Prospect during the 110 hole Phase One drilling program. These holes are 100m
east of previously announced drill holes UI 221 and UI 257 respectively and form a continuous mineralised zone between these holes. 

*Drill Hole UI 274: 100m grading 61.1% Fe (from 57 to 157m)
Drill Hole UI 273: 80m grading 64.4% Fe (from 70 to 150m)*

Previously announced results:
Drill Hole UI 257: 79m grading 60.5% Fe (from 45m to 124m)
(The hole ended in high grade material grading 65.6% Fe)
Drill Hole UI 221: 57m grading 63.1% Fe (from 52 to 109m)
Drill Hole UI 034: 36m grading 63.2% Fe (from 41 to 77m)
Drill Hole UI 035: 20m grading 61.1% Fe (from 35 to 55m)

.
.
.
.
.
.
GRAVITY SURVEY TARGET AREAS / RAILWAY EAST
The Company has received a report from Hawke Geophysics Pty Ltd regarding the results of aground gravity survey over the Railway East target area, 3 km east of the main Railway prospect. Gravity data was collected on a 40m by 400m grid in the area.   *Based on a combined interpretation of regional aeromagnetic data and the newly acquired ground gravity data, Hawke Geophysics have defined a 3km long shallow Marra Mamba Iron Formation target as a Priority One drill target area (see Fig 1).* In addition, the survey has defined two gravity anomalies as buried hematite detrital targets (Fig 1).

An initial 20 hole drill program of up to 3000m of RC drilling is expected to commence in thesecond week of July.


----------



## Markcoinoz (24 June 2008)

Hi Broadside,

UMC is by far the best I/O play in the Pilbara.

That might be a big statement.
However, they have continued to show amazing results in not only the Railway Project, but also there other projects.

Yet this appears to be only the beginning of the story.

Massive upside.

Anyway, i know where my money is on.

Just looking at the Railway East area, it looks about 1 1/2 times the size of the main Railway Project.

I think they have hinted all along that the Railway's Maiden Jorc result will be alot higher than their initial target of 100mln tns.

How high??

That is the big question.

Then we have the other targets including Yandi Headwaters which could host a massive resource.

By far the most exciting iron ore stock to be in.

Cheers markcoinoz


----------



## doogie_goes_off (24 June 2008)

Looks like one of the best plays in an overall bullish I/O market whilst other base metal and precious metal stocks get caned. Quality results, quality share price appreciation.


----------



## Broadside (24 June 2008)

yes doogie the Railway target alone will be 100m(ish) tonnes high grade low impurity DSO.  Logistics is the key now but the quality of the resource will give them plenty of options

- 100km rail spur to FMG
- mine gate with BHP

? who knows, Railway ore can be a win-win for other major parties so a favourable deal could be cut.

Railway alone it's great value but then there's Railway East, Yandi Headwaters, Jumbo Junction and who knows, bauxite with Norsk.

This is the best spec I have ever seen and the story is getting better.


----------



## the veg man (24 June 2008)

hopefully this stock can get me to the bahamas. Wish I had held some of the stock I sold. Any way dont worry  BE HAPPY. The UMC story geys better and better.


----------



## spectrumchaser (24 June 2008)

Hi Markcoinoz,

    The "Ocean Equities report" you posted back in March led me
to holding this stock.

      Sure looks like interesting times ahead

   so Thanks a Million mate  !!!


----------



## michael_selway (24 June 2008)

spectrumchaser said:


> Hi Markcoinoz,
> 
> The "Ocean Equities report" you posted back in March led me
> to holding this stock.
> ...




Yeah this company has done well

Wish i had some 

thx

MS

--------------------------------------


----------



## Gekko (25 June 2008)

2008 looks to be the year of UMC. Quick question: are we now capped larger then FDL? Must be getting close if not surpassed


----------



## grace (25 June 2008)

Gekko said:


> 2008 looks to be the year of UMC. Quick question: are we now capped larger then FDL? Must be getting close if not surpassed




Shares and options on issue 153 million odd.  SP = $2.55
MC = $390 mill  (correct me if I'm wrong).  Options expire 31/7/08.

Don't know how to value this one yet.  Bauxite deposits - haven't studied yet.  

Market seems to be valueing the iron ore that they know is drilled.

Although, if initial jorc is 100 - 150 mill tonne high grade, low impurity DSO (which looks like coming from drill results),  could still be some upside.  Say at $5 tonne, we get $500 - $750 mill.  What do others think?


----------



## Broadside (25 June 2008)

grace said:


> Shares and options on issue 153 million odd.  SP = $2.55
> MC = $390 mill  (correct me if I'm wrong).  Options expire 31/7/08.
> 
> Don't know how to value this one yet.  Bauxite deposits - haven't studied yet.
> ...




in ground values aren't the ideal way to value iron ore because it depends on logistics and grade/quality but a $5/tonne value seems very reasonable (conservative).  They are doing a scoping study at 2mtpa/5mtpa and 10mtpa and various options including road haul early on and a rail spur coming later.  Once the scoping study is released we'll be in a better position to judge but at 5mtpa that would be big cash flow relative to their current market cap.  I look at it this way - on the Railway resource alone and its potential profitability - the stock is still compelling value.

But then you have additional targets which if the probabilities win out, will dwarf Railway in time.

I couldn't put a value on the bauxite, too many uncertainties.

A deal on the logistics side is the key, the resource itself is in the bag, and quality.  They are aiming for production in 2009...would have to be late 2009 I guess.  Then the focus would shift from in ground value to forward earnings.

The Ocean Equities Report is the best summary and it's still relevant, although we've had significant exploration success since then.


----------



## frogen (25 June 2008)

Absolutely correct Broadside. The real key to this project is the logistics and I suspect they have a plan already. The dirt is a given. Some legs left in this one


----------



## Gekko (25 June 2008)

grace said:


> Shares and options on issue 153 million odd.  SP = $2.55
> MC = $390 mill  (correct me if I'm wrong).  Options expire 31/7/08.
> 
> Don't know how to value this one yet.  Bauxite deposits - haven't studied yet.
> ...






Your numbers are very fair grace. However, I do think the market is expecting a lot more then 100mt. The results yesterday were nothing short of phenomenal.


----------



## Markcoinoz (25 June 2008)

michael_selway said:


> Yeah this company has done well
> 
> Wish i had some
> 
> ...




Hi Michael_Selway,

Its still not too late to get UMC.

The initial Inferred Jorc for the Railway Project will be the catalyst.
We should be looking at $3-$5 mark.

The company has already said that we will have an Indicated Jorc followed by the Scoping Study end of July.  That should also elevate the price.

On top of that, they will be continuing their drilling campaign at the Northern Flank - Railway East - Jumbo Junction & Yandi Headwaters and releasing updates as they become available.

By far the cheapest entry point for a slice of UMC at the moment would be to buy THXO which has a strike price of .19 cents and expires June 2009.

THX are the biggest shareholders 16% 20.4mln shares.

Where the value will start to come into play will be when more drilling is done and instos start seriously looking at UMC after the JORC.

Ocean Equities has already made it very clear that they are running with UMC.
This has opened the door for overseas investors.  Similar to the recent placement for the Arabian Prince who has bought 8% of the company, i would expect more placements over the coming months given the interest that UMC will achieve.  UMC has proven to be a very tightly held registry and this is one way to inject more funds without Capital Raising.

After the Initial Jorc, Ocean Equities will be putting out a new report.

One of the other things which is becoming very interesting.

Have you noticed many of the Pilbara Fe hopefuls have formed alliances and have promoted backing FMG for the Railways to be opened up?

UMC has done no such thing.

Also, if you look at this link you will notice that BHP has double pegged some of UMC's tenements on the 11th June for a Railway with Design , Plan, Maintenance,Infrastructure.

Now why would they do that?

Also noticed, there has been no objections coming from UMC.

http://www.magicmetzgers.com/pdf/https___emits.doir.wa.gov.au_emits_enquiry_report_report.pdf

Could it be for future MGS?

Finally, this is what was written in an article with BHP's response.

http://www.thewest.com.au/default.aspx?MenuID=32&ContentID=80214


"Although Rio and BHP do not want to co-operate with other miners, they consider haulage far less threatening to their businesses than allowing third-party trains on to their tracks, which they claim will cause billions of dollars of damage."


Whilst all the other juniors are jumping over themselves with the alliances and supporting FMG to open up the railways this little company i believe will do a deal with BHP.

Why would BHP do a deal with a minnow?

1) Its high grade low impurity Marra Mamba Fe (DSO)
2) BHP's willingness to deal with MGS rather than allow them to use its Railway.

We shall see.

Cheers markcoinoz


----------



## grace (25 June 2008)

Markcoinoz said:


> Hi Michael_Selway,
> 
> 
> Also, if you look at this link you will notice that BHP has double pegged some of UMC's tenements on the 11th June for a Railway with Design , Plan, Maintenance,Infrastructure.
> ...




Could you just explain that to me (late and tired) .  L47/256 Mitsui Iron ond application by BHP.  Sorry, just started to research this company last night.  Thanks Grace.


----------



## Markcoinoz (25 June 2008)

grace said:


> Could you just explain that to me (late and tired) .  L47/256 Mitsui Iron ond application by BHP.  Sorry, just started to research this company last night.  Thanks Grace.




Put simply.

They are planning on constructing a Railway on UMC's tenements of which are very close to BHP Area C.  UMC has obviously been in talks with BHP as there was no objection by UMC for a construction of a railway on their tenements even though BHP are fighting tooth and nail with RIO not to have the Railway system opened up for the juniors.

Gate Sales are one of the most important talking points for any of the juniors to get Ore to their Customers.  If UMC strikes an early deal with BHP for Gate Sales of their Railway Prospect, that would put them way ahead of the other companies currently forming alliances in the hope of RIO & BHP opening up their Railways.

We may find out in the next month or two.

Cheers markcoinoz


----------



## Markcoinoz (25 June 2008)

spectrumchaser said:


> Hi Markcoinoz,
> 
> The "Ocean Equities report" you posted back in March led me
> to holding this stock.
> ...




No Worries Spectrumchaser,

They will be updating their report once we have received the Jorc.

Hope you make a Million.

Cheers markcoinoz


----------



## Broadside (25 June 2008)

Yes UMC is keeping its options wide open and not ruffling any feathers...why burn bridges and take sides in the rail access debate if it isn't necessary?  they have a quality deposit which is a win/win for 2 or 3 other parties.


----------



## grace (26 June 2008)

Markcoinoz said:


> Put simply.
> 
> They are planning on constructing a Railway on UMC's tenements of which are very close to BHP Area C.  UMC has obviously been in talks with BHP as there was no objection by UMC for a construction of a railway on their tenements even though BHP are fighting tooth and nail with RIO not to have the Railway system opened up for the juniors.
> 
> ...




Mind my ignorance, I'm still learning about this one.  Where is L47/256 per application, as then I checked to UMC plots, I couldn't find it.  Thanks Grace.


----------



## frogen (26 June 2008)

Markcoinoz said:


> Put simply.
> 
> They are planning on constructing a Railway on UMC's tenements of which are very close to BHP Area C.  UMC has obviously been in talks with BHP as there was no objection by UMC for a construction of a railway on their tenements even though BHP are fighting tooth and nail with RIO not to have the Railway system opened up for the juniors.
> 
> ...



   As far as I can see, gate sales is the ideal option and a very real possibility. AXO have just sured up port access for 6 m/t per year from 2010 onwards, ramping up to 10 m/t. According to the media release by the government, this takes the capacity accounted for up to 16.5 m/t per annum. The new facility is only capable of 20 m/t so there is little room for others like UMC.
   Gate sales with BHPB in theory,would see dirt on the boats quickly on existing modern handling systems. No queing for shiploading access as there will be at the PHPA berth. This scoping study is going to be very interesting.
I hold


----------



## Markcoinoz (26 June 2008)

grace said:


> Mind my ignorance, I'm still learning about this one.  Where is L47/256 per application, as then I checked to UMC plots, I couldn't find it.  Thanks Grace.




Grace,

I gleened this from AUBoat from another forum.

He sums it up much better than i could.

Is UMC negotiating a double wammy rail infrastructure play?

L47/256
This rail infrastructure corridoor starts exactly over the Jumbo project where a large area has been defined (ie. the rail 'loop'). This rail infrastructure licence starts to move in a Southeast direction for approx 10km then vears East for approx 30km through BHP's Soutern Flank deposits. It then vears in a Northeast direction to the Port Headland / Newman rail.

L47/257
This rail infrastructure corridoor starts directly to the east of the Railway East prospect on UMC E47/1429 where a large area has also been defined (ie. the rail 'loop'). This rail infrastructure corridoor then moves in a North-Northeast direction for approx 25km then moves in an eastly direction for approx 20kms, where another large area has been defined in conjunction with the Yandi deposit. The corridoor then does a dog-leg turn for approx 25km before joining the Port Headland / Newman rail.

The rail infrastructure corridoor approx distances:
L47/256 - 93km
L47/257 - 70km

Remember:
1. Railway prospect should contain from 100 - 200mt of ore.
2. How much is in Railway East?
3. Better still, how much Channel Iron is there in the Yandi Headwaters?
4. Judging by the size of Railway and Jumbo magnetic structure, Jumbo has the potential to be between 2 and 3 times larger than Railway

Within the next few years, UMC could potentially JORC 400mt.

Thoughts....
1. It appears that negotiations has taken place with BHP in conjunction of 1 or 2 rail spurs
2. Will there be 2 rail spurs?
3. If there was 2 spurs perhaps UMC fits the bill for the 70km rail (approx $350mil) and BHP fits the bill for the 93km rail ($465mil) and both UMC/BHP have full access to both spurs....

win-win situation for both parties......

UMC could easily rail 10mt per annum minimum..... 40 year mine life @ 10mt per annum on the assumption that UMC JORC's 400mt from all deposits...


Cheers markcoinoz


----------



## the veg man (1 July 2008)

its lookin very interesting ! cant wait until the rest of the drill results come out. then comes railway east and the rest. does any one think that THX  has much upside on very good results.


----------



## Broadside (2 July 2008)

the veg man said:


> its lookin very interesting ! cant wait until the rest of the drill results come out. then comes railway east and the rest. does any one think that THX  has much upside on very good results.




yes if you look at THX's market cap and take out the value of cash and their 20.8m UMC shares, the market has attributed zero value to their other projects.


----------



## grace (2 July 2008)

Hopped on board this one today prior to what should be plenty of nice news later in the month.  Holding up pretty well all things considered I guess.


----------



## Santoro (7 July 2008)

Just a couple of things from todays investor presentation;

_MINING TITLES AFTER DROP OFF
• BHPB was required in 2003 to drop off 264 sq km from TR
3156 granted in 1964
• UMC bought 3 EL’s from D F D Rhodes Pty Ltd who pegged the
vacant ground.
• This is the first time since 1964 that a junior ASX listed
company has held tenements in this area.
• Both Rio Tinto and BHPB plan for large production increases
from this Central Pilbara iron ore region.
• UMC leases are central to the production plans of both these
major companies._

Have UMC been in discussions with BHPB and RIO?? 

and
_
DEVELOPMENT OPTIONS
• Economic evaluation study to be completed after initial JORC
results obtained
• Study to assess a number of options
• Road haulage of 2mtpa of DSO to Port Hedland
• 5 to10 mtpa of DSO to FMG multi user rail
• 5 to 10 mtpa mine gate sale to BHPB or RIO_

Haven't seen the gate sale option published before (supports above statement......central to the production plans...), anyone else 
and

_Initial inferred JORC resource due July / August_

Maybe another month to wait


----------



## Markcoinoz (8 July 2008)

Hi Santoro,

Yes, i think it is becoming much clearer now that Mine Gate Sales are going to be a way forward for UMC.   It would also explain the reason for BHP to double peg  with the view to one or two Railspurs outside our front door.

The Railway Jorc i expect to be impressive.

However, a deal with BHP for MGS would put us in a brilliant position.

4 rigs drilling through till the end of 2008 is also a big plus factor.

The only short term downer is having to wait another month or so before the Jorc is released.

Can't really complain.

Management have been excellent.

Cheers markcoinoz


----------



## redsmartie (9 July 2008)

Got in on UMC early in the show, really didn't put much weight into iron ore intially but now the share price really shines. The ore is well discussed in their presentations, looking good for some annoucement frenzies.

HIGHLIGHTS OF THE RAILWAY DISCOVERY
• High grade mineralisation discovered over a zone 1.5km long
by 1km wide
• Zone is open to the north-west and south-east
• Impressive drill results include
UI 274 100m @ 61.6% Fe 0.05%P
UI 273 80m @ 64.4% Fe 0.06%P
UI 257 79m @ 60.5% Fe 0.07%P
• 15,000 m of drilling completed
• Initial inferred JORC resource due July / August 

DEVELOPMENT OPTIONS
• Economic evaluation study to be completed after initial JORC
results obtained
• Study to assess a number of options
• Road haulage of 2mtpa of DSO to Port Hedland 
• 5 to10 mtpa of DSO to FMG multi user rail 
• 5 to 10 mtpa mine gate sale to BHPB or RIO 

http://www.unitedminerals.com.au/documents/354.pdf


----------



## Markcoinoz (9 July 2008)

The Oceans Equity Iron Ore Report is out.

UMC gets some excellent coverage as expected.

http://www.minesite.com/fileadmin/c...n_Ore_Sector_Update_July08_Ocean_Equities.pdf

Once Railway is Jorced then i would expect a further update on UMC.

Cheers markcoinoz


----------



## grace (24 July 2008)

IOH have just secured mine gate sales with RIO.  With the grade on this one, I don't think it would be too hard to do the same here!

http://aspect.comsec.com.au/asxdata/20080724/pdf/00862786.pdf


----------



## Broadside (24 July 2008)

redsmartie said:


> DEVELOPMENT OPTIONS
> • Economic evaluation study to be completed after initial JORC
> results obtained
> • Study to assess a number of options
> ...




mine gate chances have soared given the IOH announcement...we have massive tonnage compared to them and higher grade....we also share a couple of the same directors.  JORC is due within a week then deals can be done.


----------



## spooly74 (28 July 2008)

Initial JORC resource for Railway prospect released this morning -

84MT DSO @ 60.1Fe and a total resource of 111MT.


----------



## grace (28 July 2008)

grace said:


> Shares and options on issue 153 million odd.  SP = $2.55
> MC = $390 mill  (correct me if I'm wrong).  Options expire 31/7/08.
> 
> Don't know how to value this one yet.  Bauxite deposits - haven't studied yet.
> ...




Initial jorc out of 113.3 @ 57.7% with 84.5mill tonne @ 60.15%.  Pretty much within my expected range.

At $5 tonne (plenty of infrastructure - rail tracks everywhere around with the big players)
MC should be $565 mill at $5/tonne minimum (it is nice low impurity highly sought after DSO)

Share price should be $3.70 based on my figures.  Still plenty of upside in this one, and lots of iron ore yet to find.

I'll continue to hold while the story continues to unfold, and into production.

http://aspect.comsec.com.au/asxdata/20080728/pdf/00863513.pdf



> The high grade DSO resource shows very low levels of impurities.
> 
> • The deposit is near surface, shallow and has a low strip ratio of approximately 1:1 or less.
> 
> ...






> The Company has refrained from any marketing initiatives to date, preferring to wait until an initial JORC compliant resource had been calculated. That has now been satisfactorily completed and is the subject of this ASX release. The Board will now sanction an approach to major producers to determine their interest along the lines of mine gate sales or other variants on a rail access
> agreement.


----------



## Markcoinoz (28 July 2008)

Hi Grace,

It might take a couple of weeks before the market wakes up.

IMO, it was a good result and i like the emphasis on the potential Minegate Sales.

On a 100mln tns i expected the price to be at least $3.50 as well.
That imo was the bare minimum.  Well, the market had other ideas.

We can look forward to another Ocean Equities update very soon now we have the Initial Jorc.

Alot of good things to come.

Cheers markcoinoz


----------



## Santoro (29 July 2008)

FMG SMH Article

Grace/Markcoinoz,

I agree, seems undervalued, insto's or chinese will wake up here (wonder if THX to sell holding, closer to production??), FMG stated they are selling for $90 per tonne, costs of $20 per tonne, profit of $70 per tonne.

10-20 year mine life depending on annual target (5-10 mtpa) and this just for railway prospect.

With their close proximity to BHPB and RIO, high tonnage and high quality ore seems like a no brainer.

How long before a deal is done with BHPB and RIO and they start digging this ore out of the ground is the key now.


----------



## spooly74 (29 July 2008)

http://www.minesite.com/fileadmin/c...July_08/UMC_Iron_Ore_Update_JORC_-_280708.pdf

Ocean equities report.

"Iron Ore Update - Initial JORC resource differentiates UMC from its peers"


----------



## Markcoinoz (29 July 2008)

Good one Spooly74,

Ocean Equities were obviously keen to get out a bit of an update.

Give it a few more weeks and they may have more news to digest and bring to the table.

I like this.

Initial Jorc resource differentiates UMC from its peers in terms of tonnage and grade.  Railway's initial resource gives UMC the largest high grade DSO deposit held outside of the majors in the Pilbara, a region which currently produce 35%
of the World's seaborne iron ore.  This size provides the flexibility to develop the project on a scale which would warrant production of at least 5mtpa to 10mtpa.

Jumbo Junction should prove to be a real crowd pleaser as well.


Cheers markcoinoz


----------



## magix66 (12 August 2008)

article found on MiningNews.net (first published in Resource Stocks)


*Railway hopes high for iron ore explorer  *


Tuesday, 12 August 2008

PERTH-BASED EXPLORATION company United Minerals Corporation is highly confident that its 100%-owned Pilbara Iron Ore Project has the potential to give it a very rosy future indeed. By Wally Graham - RESOURCESTOCKS* 



United Minerals' Pilbara iron ore project 

The company has three tenements covering 263.8 square kilometres in the middle of one of the world’s greatest iron ore provinces, surrounded by two of the biggest players in the iron ore industry – BHP Billiton and Rio Tinto.

But in order to fully understand the significance of these tenements and just how they could contribute to the future for United Minerals, it is necessary to take a quick look at their history.

The ground area of the company’s tenements is underlined by Brockman and Marra Mamba type formations, which host two of the major ore types, namely Brockman and Marra Mamba supergene enriched iron ore, that are shipped from the Pilbara.

United Minerals originally acquired the tenements in October 2006 from DFD Rhodes, a company that is synonymous with the Western Australian iron ore mining industry.

The three tenements, E47/1431, ELA47/1429 and ELA47/1432 were all originally part of the Goldsworthy Mining Temporary Reserve TR70/3156, which dates back to 1964.

A substantial portion of this temporary reserve was in turn retained by the BHP group as its Area C mining lease, part of the Mount Goldsworthy joint venture, which is currently being mined.

The tenements comprise a number of discrete areas that BHP was unable to retain.

“When BHP Billiton applied for a mining lease for Area C they had to drop their tenure back to a maximum amount of 400 square kilometres,” United Minerals chief executive Matthew Hogan told RESOURCESTOCKS. 

“Back then iron ore prices were different and if it wasn’t obviously popping up out of the ground, they really didn’t want to know about it.

“So this project is basically the first time a small company has got tenure in the heart of the Pilbara iron ore region.”


Being right in the middle of the Pilbara iron ore heartland has given United Minerals a big advantage over tenements of a similar nature that are usually held by other junior exploration companies.

The tenements encompass some of the Pilbara’s major points of infrastructure and either pass directly over or lie adjacent to them. These include the BHP Area C iron ore mine; the Rio Tinto group Pilbara Iron railway, including the West Angelas mine spur line that links to the Lang Hancock Railway from the Hope Downs mine; the BHP iron ore railway; and the Great Northern Highway to Port Hedland.

United Minerals wasted no time in beginning a substantial reconnaissance program across its tenement area, quickly identifying four areas of outcropping high-grade mineralisation during initial mapping and sampling programs.

These included three Marra Mamba type ore targets in Jocelyn, Camp Hill and Southern Flank and the Fork North Brockman type ore target.

The subsequent drilling campaign carried out by United Minerals last year encountered extensive iron ore mineralisation at multiple locations within E47/1429.

Drilling at the Jocelyn prospect defined mineralisation at depth including 33m at 56.1% iron while drilling at Camp Hill confirmed high and medium-grade mineralisation including 46m at 57.8% iron, which was confirmed as the extension of BHP’s neighbouring mineralised body.

The most exciting result from the initial drilling was the discovery of the Railway prospect, an area of high-grade mineralisation under 40m of cover. This included 20m at 61.1% iron in a centrally located part of the Mount Newman member of the Marra Mamba Iron Formation.

SINCE the initial discovery, the result of an aggressive drilling program of more than 15,000m of reverse circulation (RC) and diamond drilling, United Minerals has outlined high-grade iron mineralisation over a zone 1.5km long by 1.5 km wide. 


Aeromagnetic data has shown that the Railway deposit, which occurs at the eastern nose of the Milli Milli anticline lying beneath 20–40m of cover, appears to have a distinctive aeromagnetic signature, which is largely coincident with the high-grade Marra Mamba mineralisation that was defined by the drilling program.

Assay result highlights from the early 2008 drilling include 79m at 60.5% iron from 45m to 124m, 57m at 63.1% iron from 52m to 109m, 36m at 63.2% iron from 41m to 77m and 20m at 61.1% iron from 35m to 55m.

It is two of the latest drillholes that have particularly sparked United Minerals’ interest. They returned exceptional intersections of 100m at 61.1% iron from 57m to 157m and 80m at 64.4% iron from 70m to 150m.

“These holes were drilled 100 metres east from our previously announced drillholes,” Hogan said.

“They are noteworthy as they set a new standard for the Marra Mamba mineralisation we have discovered at the Railway prospect forming a continuous mineralised zone between the holes.”

The assay results from these two holes are very significant as they demonstrate the existence of a strong lateral continuity of thick, high-grade iron mineralisation over 300m in an east–west direction and 160m running north–south.

The thickness of the mineralised zone has been increased from an average of 30m to 90m providing an outline for an open-pittable body with low strip ratios.

The large widths of high-grade iron mineralisation that United Minerals’ recent assay results have revealed are considered to be unusual for Marra Mamba ore bodies where average widths of around 25m are more common.

The widths received at the Railway deposit have given the company cause to think structural folding and fault repeats therein could have a very positive influence on iron ore distribution in the central part of the deposit.

Since the commencement of drilling in early April 2008, United Minerals has completed 135 holes for 13,200m of RC drilling at Railway. Approximately 20 holes for a further 1500m of drilling remain to complete the phase two 100m by 80m drill-out.

“We want to accelerate our exploration of Railway because we want to find out, by the end of the year, what the global tonnage could potentially be at some of these other targets,” Hogan said.

“We want to push the exploration along. Obviously Railway is a fantastic discovery, but for us, it could be one of many.”

The aeromagnetic data also revealed a similar, but larger, aeromagnetic signature at the western covered nose of the Weeli Wolli anticline, which was named Jumbo Junction.

The Jumbo Junction target area represents a high priority exploration target for the company for additional high-grade Marra Mamba mineralisation as it lies just 5km directly along strike to the west from the BHP Area C mine.

United Minerals recently announced it had received a report from Hawke Geophysics regarding the results of a ground gravity survey over the Railway East target area, which is located 3km east of the main Railway prospect where an initial 20-hole drill program of up to 3000m of RC drilling was commenced in July.

Gravity data was collected on a 40m by 400m grid in the area based on a combined interpretation of regional aeromagnetic data and the newly acquired ground gravity data.

The ground gravity survey defined a 3km long shallow Marra Mamba iron formation target as a priority one drill target area. The survey also defined two gravity anomalies as buried hematite detrital targets.

“We aim for an initial inferred JORC resource at Railway by the end of July,” Hogan said.

“If exploration is successful at our other targets, we hope to be drilling out new resources elsewhere before the end of the year.”


----------



## Spaghetti (12 August 2008)

Just wanted to ask if anyone knew if brockman ore at the Fork deposit was anything worth considering. Marra ore is great news but brockman ore would be a killer. Looked on map and it says "brockman ore" but cannot find any mention of drilling to confirm anything. Still looks not too shabby for explorer.


----------



## Markcoinoz (16 August 2008)

Hi Magix66,

Been away a few days and just noticed your post.

Have put it on HC.

Apology about the delay.


Also noticed Ocean Equities has put out a new report on the Iron Ore Sector.

38 pages of great research with UMC being one of the main focus.

http://www.minesite.com/fileadmin/c...g_08/Iron_Ore_Sector_Update_Aug08_-_Macro.pdf

Look forward to your return Magix66

Cheers markcoinoz


----------



## magix66 (17 August 2008)

thanx mate

and it has obviously attracted a reincarnation of an suspended FMS clown...

well just put him on ignore...

I'll be back tomorrow

cheers


----------



## Pat (9 October 2008)

I may just get my re-enty on this at 40 cents 
I've been waiting so long after buying this at 30 cents then selling at 40 cents. 
I watched it grow to almost $3


----------



## Broadside (9 October 2008)

the market's taken leave of its senses...$1 a tonne for high grade low impurity JORCed iron ore....in hindsight (and don't we all love that) $2.90 was a tad ahead of itself....sub $1??  crazy

And the resource (Railway I am talking about) WILL get bigger, refer last Friday's monster drill results.

I will hold through to production if that's what it takes to realise the value.

Pretty disappointing market though, to think where this would have been 2 years earlier in the cycle.  That's life.


----------



## Pat (9 October 2008)

Broadside said:


> the market's taken leave of its senses...$1 a tonne for high grade low impurity JORCed iron ore....in hindsight (and don't we all love that) $2.90 was a tad ahead of itself....sub $1??  crazy
> 
> And the resource (Railway I am talking about) WILL get bigger, refer last Friday's monster drill results.
> 
> ...



No real future demand? Anyhow I'll be waiting till 40 cents or till the market recovers... Could be waiting a while huh...


----------



## Broadside (9 October 2008)

Pat said:


> No real future demand? Anyhow I'll be waiting till 40 cents or till the market recovers... Could be waiting a while huh...




no real future demand for iron ore? that's why they paid 80% more just a few months back....I will bet on Chinese economy to continue with moderated growth....even zero growth is huge real demand for iron ore.  Govt is using stimulus package --> infrastructure.

Who knows, anything is possible, even 40c, but it would be ridiculous.


----------



## dontbelievethem (9 October 2008)

Hi, I have been investing in a number of these smaller commodity plays and am getting pretty fed up with management saying one thing and then delivering something totally different.  Any idea with these guys about their reliability.  There are various topics about prices that could be paid for their resource, the question is if you were a buyer you could pick up as much of this as you want in the market for a fraction of suggested prices, or am I missing something??


----------



## Broadside (9 October 2008)

dontbelievethem said:


> Hi, I have been investing in a number of these smaller commodity plays and am getting pretty fed up with management saying one thing and then delivering something totally different.  Any idea with these guys about their reliability.  There are various topics about prices that could be paid for their resource, the question is if you were a buyer you could pick up as much of this as you want in the market for a fraction of suggested prices, or am I missing something??




The management is conservative and then delivers, in my opinion.  They didn't overhype Railway with conceptual numbers and desktop models, they drilled many holes and then targeted a 100m tonne resource.  They JORCed it and it's still getting bigger.  In terms of stock specifics I couldn't be happier, the resource is very high grade and low impurity.  Now they say Jumbo Junction could be bigger again - we're waiting first drill results on that.

It's the macro which is hurting all iron ore stocks.

Further exploration success would of course help UMC but what is critical now is finding a route to market, really that's all that matters.  That's something that goes on behind closed doors.

I don't know if that helps.


----------



## Markcoinoz (15 October 2008)

dontbelievethem said:


> Hi, I have been investing in a number of these smaller commodity plays and am getting pretty fed up with management saying one thing and then delivering something totally different.  Any idea with these guys about their reliability.  There are various topics about prices that could be paid for their resource, the question is if you were a buyer you could pick up as much of this as you want in the market for a fraction of suggested prices, or am I missing something??




Hi dontbelievethem,

Firstly, as Broadside has pointed out, Management underhype and overdeliver with their announcements.  They have also pointed out that they are awaiting assay results which is extremely overloaded with backlogs.  That is completely out of their hands.

Something to ponder.

This was taken from another website.

Market analysts are stunned by the Sep iron ore import figure, hitting a record high of 43.03m tons. This has come against the backdrop of slack demand and weak steel market in recent months. The huge import tonnage is described as confusing and unbelievable by most analysts, reported by Beijing Business Today.

I think you will find China are playing games again as we move into the next years round of Iron Ore fiasco negotiations again.

You make a point that China could buy I/O for a fraction of the price.
If we were talking about lowgrade I/O, then i might agree.
However, Highgrade Hematite is in high demand due to its qualities of being able to blend it with lowgrade.

If you have bought UMC recently, IMO you will do very well.

Cheers markcoinoz


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## vine (15 October 2008)

Hi Markcoinoz,
UMC going gangbusters at the moment up 42%, I know you hold as I do and also THX. Any reasons for todays movement that you know of.
Thanks
Vine


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## Pat (15 October 2008)

F@#$%&*#%$@%&*@#$$!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!


If only I had the balls to buy, I can't believe this run, missed the boat again


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## Markcoinoz (15 October 2008)

Hi Vine,

I have no idea.

Yesterday the Bots were in action again giving UMC a hammering whilst everything else was going up.

We are due for a quarterly and also the AGM is next month.

Over the last few weeks UMC has been one of the hardest hit in the I/O sector.

Yet, it could not be justified.

Managed to pick up some more at .60 & .80 cents the other day.

News is definitely overdue.

Perhaps that could be it.

Seems a few of the D/T have jumped on board as well.

Good to see it is at least moving in the right direction.

Cheers markcoinoz


----------



## vine (17 October 2008)

It was good to see UMC run this week from .60 up to 1.05 , of course I held on  and now back to .70, learning some lessons on the way not to do that again. Can anyone explain the psychology behind a run like that on no information. Is it just a case of rumor creating a run and then people buying just not to miss out. Also in the case of a run what signs can you look for that tell you to hold or sell. I hope I've explained myself OK, I just don't want to miss out next time.
Thanks for any guidance as i can't find any info on this
Thanks


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## dontbelievethem (17 October 2008)

Hi, the way I see it is you had a stock which has come from a high of 2.70 to a low of 50c in less than 4 months.  It's underlying business is worth up to $4 if you believe some of the commentators, although I guess this number is up for debate given the changing market dynamics now.  Anyhow following an 11% move in global markets on Monday it doesn't take much rumour/volume to move this thing, less than US$1mn was traded that day.  I guess the market makers haven't got a clue what to do with pricing these things in periods of such volatility.  The question is what is it worth now, times certainly seem to have changed and investors are scared.  That said if you put a 50% haircut to the 4$ number you still get some serious upside.  I will be keen to see whether management start talking their own book or not from here, I hope not.  I guess the lesson in these markets is if you make 40-60% in 2 days then lock it in......actually in any market that makes sense!  It's all about fear and greed.


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## robert toms (18 October 2008)

I hold as well...with the volatile market and uncertain Chinese demand levels,I guess the price for this one will be all over the place until there something concrete happening,eg, contracts signed ..railway commences ...or something similar.Uncertainty abounds...Hold on for the ride!


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## PP123 (22 October 2008)

Is there anything in the pipeline to believe these shares will get back up to the former glory days of $2.50+ or was it just a hype run, and these are the true value of these shares?


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## spectrumchaser (22 October 2008)

Take a read of the scoping study released today.
The report is very positive given the present "bailout"
situation re iron ore stocks.

 "True value" is what the market will pay !


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## Markcoinoz (23 October 2008)

Spectrumchaser,

theseawolfe from another forum was kind enough to post an update from Ocean Equities.  I have not got the link as i normally get the report a couple of days later from Minesite.

Ocean's report
News
UMC has released the findings of its preliminary financial study investigating the economics of potential options for the development of its 64.5mt high grade bedded iron ore resource at the Railway prospect. The preliminary financial model incorporates the findings of an independent scoping study conducted by Prodetheus Limited which have been reviewed by UMC’s recently appointed Project Development Manager, Sten Soderstrom, and forms the Base Case of a 10mtpa of operation; it is a precursor to the upcoming pre-feasibility study which is expected to be complete by mid 2009.

Preliminary Financial Model Summary (mid range Base Case)1

1 Refer to UMC’s press release for greater details of the qualifications and assumptions
Total cash operating costs are expected to be ~$40/t, assuming commercially agreeable infrastructure access, with processing plant and infrastructure investment of $40/t of annual capacity (excluding capitalised pre-operating expenses), at the lower end of recent green field iron ore projects due to Railways proximity to existing operations, rail and infrastructure. Indicative net operating profit after tax, assuming a 30% decrease in contract pricing, is in the range of $333m-$596m pa with consequent Net Present Value in the range of $1.18b-$2.4b.
UMC has stated it is considering various options for funding the project, including third party equity and/or joint venture, and we believe the quality of the high grade DSO iron ore at the Railway deposit is extremely attractive to the market because of its 60%+ Fe grade and impurity levels, which appear blendable with BHPB and RIO’s neighbouring operations.

Implications
The findings of this preliminary study highlight the robust nature of UMC’s iron ore assets, applying estimates which we believe have scope for favourable revision in a pre-feasibility study and assuming no extension to mining operations beyond 7 years – ie giving no value to future exploration success or Railway’s other DSO resource other than the Bedded Iron Ore. This is in line with management’s policy of providing conservative guidance to the market. The study excludes a 20mt of detrital high grade ore which would be, in its own right, a company transforming asset for a number of UMC’s junior iron ore peers and we expect this resource to be included in UMC’s upcoming feasibility studies.

Summary of the different components of the Railway prospects inferred resource


UMC currently has cash reserves of ~$17m which we estimate will enable it (at least) to complete: a pre-feasibility study on Railway; project exploration and metallurgical programmes; environmental and hydro-geological studies; and potentially achieve a significant increase in its high grade DSO resource (dependant on resource upgrades at Railway from infill drilling and exploration success at new priority targets). By mid 2009 we believe these work programmes will be complete and negotiations for commercial offtake agreements will be well advanced.
Since UMC originally listed in late 2004 it has raised a total of ~$30m, highlighting the return which has already been achieved with the first ~$13m and the potential transformation the Company could achieve with the remaining balance.

Key Events / Valuation Triggers
Near term news flow is expected to positive dominated by the development of UMC’s iron ore projects including:
· September quarterly report - Outlining initial exploration drilling results at priority targets, including Railway East, Northern Yandi headwaters, and Jumbo Junction;
· AGM Nov 7th - for which today’s release has been prepared for a presentation at the AGM;
· Railway prospect - drilling programmes and assay results are ongoing to upgrade Railway’s resource status and potential tonnage, with particular focus on “Value in Use” criteria. Indeed the Company aims to achieve a 15-20mt Marra Mamba bedded iron ore resource from its 64.5mt inferred resource;
· Bauxite prospect - drilling programmes are now complete and assay results should be shortly available;
· new and ongoing discussions with a number of infrastructure owners in the region and further development of the ongoing pre-feasibility studies.

Cheers markcoinoz


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## Pat (23 October 2008)

PP123 said:


> Is there anything in the pipeline to believe these shares will get back up to the former glory days of $2.50+ or was it just a hype run



Aren't they all? Hype is what makes the money... or breaks the bank...

I may get my chance on UMC, perhaps for the last time.


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## spectrumchaser (23 October 2008)

Markcoinoz
  Thanks for the "Ocean Equites" report,it sure does
highlight UMC have more strings to their bow than
many other IO juniors.
   Will be interesting to see what the SP is in two
years time.


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## Markcoinoz (28 October 2008)

This is a further update from O/E care of Seawolf regarding opening up the Rail lines in the Pilbara.

News
Following Australian Federal Treasurer Wayne Swan’s trip to the Pilbara on the weekend he has officially declared the Hamersley and Robe railway lines owned by RIO, and the Goldsworthy railway line owned by BHPB, under the Trade Practices Act enacting recommendations from the National Competition Council (“NCC”).

Fortescue first launched a bid to declare the rail lines open in 2004 and today’s announcement is another significant break-through for the junior sector following the previous treasurer, Peter Costello, failing to accept a similar NCC recommendation in March 2006. Under today’s NCC recommendations iron ore juniors are able to apply for right of access for 20 years, starting November 19th 2008, and will have the right to run their own locomotives and rolling stock on existing rail lines, subject to negotiating commercial agreements. A safety network is provided to the juniors such that recourse to regulation through ACCC arbitration is available if access disputes cannot be resolved.

Meanwhile, Fortescue has confirmed the commissioning of a study assessing the viability of a second iron ore port at Dixon Island near Karratha. The port would be for the development of the company's western tenements, including Solomon, and could be fed by RIO’s rail lines once commercial terms are agreed.

Implications
The move from Wayne Swan further illustrates the increasing pressures from government and industry on the traditional incumbents, BHPB and RIO, to open up their existing rail networks and provide 3rd party access to emerging iron ore juniors. While we would expect BHPB and RIO to seek a review of the declaration (“Summary Timeline” provided below), we believe it is now only a matter of time before the juniors have access to the majors existing rail infrastructure and see the ability of the juniors to negotiate with existing infrastructure owners in the Pilbara as being significantly enhanced by today’s break-through development.

The magnitude of Swan’s announcement can be seen in BHPB and RIO’s opening share prices which collapsed ~7% at the open in London, following a flat trading day on the ASX and the announcement of the declaration of rail services only after the close of the ASX. The proposal of full rail track services, not just 3rd party haulage, has a significantly greater potential impact on the efficiencies of the incumbent’s integrated networks, key criteria to the proposed synergies of a BHPB/RIO merger (and for a junior to agree a commercial agreement with a major).

A further positive for the junior space is the Government’s conclusion that while port capacity may be some what constrained in the short term, that medium and long-term infrastructure plans for port capacity (and common user facilities for relatively small tonnage bulk commodity exporters) are sufficient not to impeded 3rd party rail access or capacity allocations.

We believe juniors who are close to existing (or future committed) rail infrastructure, with high grade deposits (suitable for blending with BHPB & RIO’s existing operations), are best positioned to negotiate near term infrastructure access or other forms of commercial agreements (eg mine gate sale, JV etc). We would expect iron ore juniors with “stranded” deposits (such as FerrAus), and potentially large scale operations (such as Brockman, UMC, and Atlas), to best benefit from today’s announcement. Additionally we would highlight that at the current share prices a number of these juniors are priced for failure or limited scale operations (with no rail access).

Summary Timeline
29th Aug’08 - NCC’s provides Australian Federal Treasurer, Wayne Swan, their final recommendations for the Hamersley, Robe and Goldsworthy railway lines.
27th Oct’08 - Swan accepted the NCC recommendation and declared the service for a period of 20 years.
19th Nov’08 - Service providers deadline for seeking a review by the Australian Competition Tribunal, if no review is sort 3rd party’s can apply for right of access from this date. We believe BHPB and RIO will seek a review under which the Australian Competition Tribunal must use its best endeavours to determine any review of the Treasurer's declaration within 4 months, although that period may be extended (as per the current review of the Mt Newman railway line).

Very good news for UMC.

Cheers markcoinoz


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## dontbelievethem (1 November 2008)

Hi, I was reading the reports above about costs for the projects but had a few questions on total capital required.  How much will it take to get this mine running, $17mn of cash left in the bank does not strike me as enough to enable them to wait it out for a better market and nobody is going to raise any money in the near term.  

The cash cost of running the mine at $40 seems quite good, but was the NPV of the project based on $180 from June, $70 currently, or another -30% for current spot prices?  One thing for sure is that the price negotiations from the Chinese this year are looking like a -30% starting point and then an agreement somewhere in between.  They were forced to pay spot on the way up, why not the same on the way down?


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## saltyjones (4 November 2008)

i would think that there are other Fe user besides china. maybe railway ore is bound for the middle east.


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## Lachlan6 (9 November 2008)

UMC once looked soo promising. It has since collapsed into a heap and looks like it may continue to fall further. My Elliott Wave interpretation places the stock in the wave (4) at the moment which is taking the shape of a descending triangle. Normally these take the form of five internal swings, however there is a chance that UMC could just complete three before falling into the wave (5). I have a feeling that this stock will fall hard if the support level at $0.50 is breached. Just one to keep an eye on.


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## Markcoinoz (10 January 2009)

Hi Lachlan6,

Your Elliott Wave chart picked it very well.

Its been an interesting few months to say the least.
Considering UMC has been one of the hardest hit of the I/O companies, it looks to me that it is about to turn the corner.

Still early days.

Yet, it does look promising.

Now with RIO/BHP falling out of bed together and with the recent interest of AGO-BRM-BCI, i see it as only a matter of time before UMC has a decent run in the sun.

Cheers markcoinoz


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## Lachlan6 (12 January 2009)

Five waves look to be complete now to the downside. Therefore the usual three wave corrective bounce scenario looks to be playing out. The first of these in what looks to be a larger wave (A) is now underway. The usual bounce after a five wave decline is shown by the orange and red lines, however this may be a little ambitious. Instead the stock may struggle first to clear the wave 4 of one lesser degree and resistance between $0.80 - $1.00. I would suggest only if the market can gain some real legs that the stock may approach the typical level but for the time being it may be best to focus on this lower target.


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## PP123 (7 April 2009)

You think this will ever get back to around the $1 mark
It gets to about $0.80cents and falls again


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## Broadside (7 April 2009)

PP123 said:


> You think this will ever get back to around the $1 mark
> It gets to about $0.80cents and falls again




nothing surer, the resource is A grade 

will only be a matter of time before it's exploited

high grade, low impurity, low strip ratio

is economic even with lower iron ore prices expected this year and next 

they'll be producing into the shortage in the years following (as a result of so many marginal projects like magnetite being mothballed)


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## Broadside (17 April 2009)

they announced a drill result today 147m @ 61% Fe grade, this is just 200m West of the BHP tenement, highly likely the Railway deposit continues into their land.

This has to be one of the best drill hits ever achieved by a junior iron ore company in Australia.

Railway is open to the east (toward BHP) and then further East of the BHP tenement have been some very promising drill hits at UMC's Railway East target.

Looks like it's one giant deposit that is shared by both UMC and BHP.


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## grace (17 April 2009)

Broadside said:


> they announced a drill result today 147m @ 61% Fe grade, this is just 200m West of the BHP tenement, highly likely the Railway deposit continues into their land.
> 
> This has to be one of the best drill hits ever achieved by a junior iron ore company in Australia.
> 
> ...




Yes, some nice red dirt there alright.  A few of 'my' juniors along with this one, have been busy testing the red dirt too - frs, brm all with updates and some nice grades coming out.  I wonder what the future holds for these juniors??


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## jamesd (19 April 2009)

Broadside said:


> they announced a drill result today 147m @ 61% Fe grade, this is just 200m West of the BHP tenement, highly likely the Railway deposit continues into their land.
> 
> This has to be one of the best drill hits ever achieved by a junior iron ore company in Australia.
> 
> ...




High grades, low maitenance, cashed up and a sitting duck for a take over by the big boys....I've loved it from the begining and if they manage to resist a take over they will be a future boomer


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## Markcoinoz (19 April 2009)

Broadside said:


> they announced a drill result today 147m @ 61% Fe grade, this is just 200m West of the BHP tenement, highly likely the Railway deposit continues into their land.
> 
> This has to be one of the best drill hits ever achieved by a junior iron ore company in Australia.
> 
> ...





Hi Broadside,

I remember last year when this was first touted that Railway East could be a continuation of the original Railway deposit.  Now we are looking at one giant deposit that looks very likely to extend well and truely into BHP's territory.

Bungy from another site posted the O/E report.

Hope the link works.

http://www.keepandshare.com/doc/view.php?id=1158420&da=y

Here is basis of what they have to say.

UMC has announced the assay result for vertical diamond drill hole UI767 - refer to the Company’s announcement of 26th Mar’09 reporting that the drill hole had returned visual iron ore mineralisation of 129m. The assay result returned 148m of continuous high grade Fe mineralisation (61.1% Fe /2.58% Al2O3), including the thickest intersection of bedded Marra Mamba mineralisation intersected at Railway to date (122m at 62% Fe and only 1.88% Al2O3 – refer to Exhibit 1 for further details).

Drill hole UI767 lies towards the centre of the remaining untested zone, ~200m west of the UMC tenement boundary with BHPB Area C, and is part of the ongoing programme to drill out the untested eastern section of the Railway target.

The assay result confirms the trend of thickening high grade bedded Marra Mamba ore past the existing Indicated Resource towards, and potentially into the neighbouring BHPB tenement (Refer Exhibits 1 and 2).

An RC rig has now been deployed to support ongoing diamond drilling within this highly prospective zone to further test mineralisation adjacent to the tenement boundary and extend the target mining zone of the Railway orebody.

Implications
Given Atlas earlier in the week described their drilling results as “outstanding” at its Wodgina target (including 68m @ 60% Fe from surface – refer Exhibit 3 for further details), then it is not surprising to see today’s announcement from UMC described as “tremendous”. The quality and size of the Railway orebody continues to improve and differentiate UMC from its junior peers.

We expect to see the tonnage of UMC’s high grade, low impurity bedded Marra Mamba Indicated Resource (currently 76mt @ 60.2% Fe /2.6% Al2O3) materially expand as further infill and expansion drill results to the east (such as UI767) extend the orebody. The Railway prospect’s current resource footprint is well defined enabling engineering and permitting programmes to be commissioned to progress the project towards production (the Company remains committed to putting the orebody into production by the end of 2010).

While the reported Fe grade and impurities levels of the 148m intersection, and in particular the 122m bedded ore intersection, are already extremely impressive we understand they have been impacted by smaller pockets of shale bands within the ore; if these shale bands were to be taken out (as would be the case when the orebody is mined), the intersection would be even more impressive in terms of grade/impurities, meaning this ore is particularly favourable blending material. The widths and grades/impurity levels included in the orebody, particularly in the eastern section (highlighted in Exhibit 1) indicate significant faulting and structures unlike most Mt Newman Marra Mamba formations.

The current drill programme which is increasing the tonnage of the orebody to the east should, in our opinion, improve the economics of the project and the Company’s ability to negotiate infrastructure access.

As we have previously discussed on a number of occasions we believe the ability of a junior to agree a commercial infrastructure agreement is largely dependent on the grade/blendablity of the deposit and its location relative to infrastructure.

Key Events / Valuation Triggers
Near term news flow is expected to be dominated by the development of the Railway prospect and further exploration drilling results including: results from initial metallurgical test work at Railway; further development of the ongoing engineering and permitting programmes; continued diamond drilling on the untested eastern section of the Railway deposit; results from the new 2009 exploration programme; and ongoing corporate/infrastructure strategy discussions.


Cheers

markcoinoz


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## Markcoinoz (5 May 2009)

Just over 7mln shares changed hands after the bell in 3 transactions.

The Bots had been at work all day to keep the price around the $1 mark.

Should be interesting on open tomorrow.

Cheers markcoinoz


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## ajax3550 (25 June 2009)

*UMC*

Anyone have views about the status and prospects of UMC?   Feedback welcome.   Considering serval alternatives in the iron ore space and UMC looks to have first-rate rights in valuable properties, very near proven mines.


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## Zird (6 August 2009)

Seems to have good  quantity of IO in the ground, plus the location and transport nearby, and a healthy share price before recession. But is the worst performer of my stocks including other IO and still flat lining. Hard to find much info other than a few company statements. Maybe too early days?


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## dbcok (6 August 2009)

Hold a few myself.IMO they will not show much until they get further down the track and contracts for their product are signed.There seems to be quite a few juniors lining up at the moment.Chinese interest in these juniors seem to give them a boost.
Probably in twelve months we may have a clearer picture.


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## dontbelievethem (31 August 2009)

A couple of things bother me about this stock, why is there not more domestic interest if it is such a no brainer, and will they be the ones left by themselves whilst jv's go on around them.  Also how much cash will they need to develop this project?


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## dbcok (1 September 2009)

The absence of any news on positive progress is a little off-putting.One has to have faith that the management has a plan.
I only have a small holding and in the absence of any more encouraging news will keep it as a small holding.
Where will they get the money to start production?Either from the shareholders via a capital raising or from a rich JV partner.
With all securities we put our faith in the management.


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## SilverRanger (7 September 2009)

Seems like they are doing something, trading halt pending an announcement of "a significant corporate transaction"


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## dontbelievethem (9 September 2009)

Does anyone have any thoughts on the transaction, looks quite a good deal to me but the stock is still getting smashed.  The way I see it the worries about funding are now removed and they have a nice offtake agreement.  Short term the problem now looks like port access and transportation, although hopefully they can sort this one out in the next 6 months.  Management also seem a bit mickey mouse sometimes, but i guess that's true for the junior mining space.


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## joelbaby (11 September 2009)

Hi,

just to answer a couple of points you raised:

Transportation - ore can be trucked to port using road trains.  MMX already does/did this.  UMC estimates that they can truck 3Mtpa (but no more).

Port Access - they have reserved space at the new port which will be available Q4 2010.


I think longer term, that the chinese railway company may be able to give some assistance to help UMC build its own rail.


Also - if you look at what is happening to other IO juniors in the region - China is starting to debt fund them.  FMG gives China a 30% discount to benchmark prices in return for debt funding.

Once the port is expanded, and spur lines have been built for some of these juniors (lets say by 2015) - then china will be less dependent on bhp/rio.  I think that with bhp/rio fighting tooth and nail not to share their rail, they may end up being worse off not better off.


Joel


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## Zird (17 September 2009)

Rights Issue - 10c per new option will be issued at rate of 1 option per 10 held shares at the Record Date of 25 Sep 09.. Up to 15,5 million new options to raise $1,5 million (AUD). New options exerciseable at $1.35 0n 30 Sep 2011. Closing date 16 Oct 09. The issue is non-renounceable.

I hold UMC shares and still hoping to recover losses from the last 12 months.


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## dbcok (17 September 2009)

It will be interesting to see the prospectus that comes with the options,due early October.
I wish that they had a B pay facility to pay for options,else have to pay for bank cheque...this for only a small amount of options.
If confident may be best to buy more UMC at about a dollar on the market,but that may be premature.
Decisions decisions


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## Zird (17 September 2009)

UMC went up 1 cent today -  must have be due to dbcok and myself making a comment on ASF. So much of interest elsewhere in the market.


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## Zird (18 September 2009)

Just in case anybody is listening, I inadvertantly   ramped up UMC yesterday saying it had gone up 1c. In fact it ended  down 12c.
SP is going against the rising market trend.  SP is down 65% on last years highs as comparison to Aquilla which has grown back strongly to only approximately 43% down from last years highs.


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## dbcok (18 September 2009)

Yes I saw that ,understood,no worries.
Why the price has not responded to Chinese deal?
My guess is the trucking option,must be much more costly than rail. 
And BHP and RIO will do their best to make it hard for the juniors.The Chinese look as if they are trying to broaden their supply line and in the process make things harder for the BHP and RIO...price wise at least.
Anyway the prospectus for the options may reveal more ,hopefully.


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## gfresh (7 October 2009)

Looks like another takeover could be on the cards for this iron ore potential. 

Trading halt ahead of "change of control transaction".


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## sleeper88 (7 October 2009)

My guess is China Railway Materials Commercial Corp (CRM). They're taking a 11.38% stake in UMC @ A$1.35 a share. Having seen the share price slump to A$0.91, maybe CRM thought it would be better off buying out UMC and merging the assets with their strategic partner FRS. 

Quote from previous FRS annoucement:

_Eastern Pilbara Focused Investment Co-operation 
FerrAus and China Railway Materials (CRM) will mutually seek to develop other resources in the eastern Pilbara region with the intention of assembling a sufficient quantity of quality iron ore resources to support the financing and construction of rail and port infrastructure that is a prerequisite for development of the iron ore resources in the region. Investment cooperation is to be effected by FerrAus or China Railway Materials (CRM), on a 
reciprocal  basis,  offering  the  other,  on  terms  to  be  agreed,  on  a case  by  case  basis, a meaningful right-of co-participation in investment opportunities in East Pilbara iron ore assets or targets.  _


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## SilverRanger (9 October 2009)

http://news.smh.com.au/breaking-new...ounts-over-united-minerals-20091009-gq4e.html

Seems like it might not be CRM afterall, it's good to see some competition out there


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## dbcok (16 October 2009)

SilverRanger said:


> http://news.smh.com.au/breaking-new...ounts-over-united-minerals-20091009-gq4e.html
> 
> Seems like it might not be CRM afterall, it's good to see some competition out there




Looks like not much competition at all at $1-30.The directors obviously want to bail out,which seems to happen in these cases.
I held Western Mining when BHP took that over  .They,the WMC directors, bailed out just before the boom-the directors said what a marvellous offer that was as well.
No BHP shares,just what I see as an inadequate cash offer again.


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## Power (16 October 2009)

This BHP offer is a joke. 

Not long ago UMC CEO Mr Hogan said:

“We welcome the deal with China Railway Materials Commercial Corp. Group and look forward to working with them as
a strategic shareholder in bringing this outstanding deposit to commercialisation. The long term off‐take agreement will
materially assist the financing of the project” he said.

"...significant milestone".
" ...will enable the ....deposit to be advanced towards production."

Now the UMC Chairman Mr Birchmore is talking about an opportunity to deal away " the significant development risks" which the company would need to overcome. 

What has happened in the meantime? 

It seems the board of UMC is not doing well by unanmiously recommending the offer of BHP.  :rocketwho

The share price reached several times a price above 1.20 AUD since summer of 2007. The last time in may 2009, just 5 months ago !!!

Why accepting such an offer? This is not in the interests of the long standing shareholders. 

I will refuse the offer. 

 I want to see the first ore shipped. :jump:


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## Vizion (16 October 2009)

Ive been in & out of this one a couple of times since March.
It was about to hit my stop/loss if it dropped any more, so 43%  in my eyes is a win, & I will probably be watching from the sidelines to what happens when the dust settles.


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## tigerboi (17 October 2009)

i see BHP finally made an offer for UMC after i said this on the io transport thread last may.

"This is the 4th force i was saying that have to get together so that they can get the 50mt out each year,i noticed that UMC is not in the alliance does that say something for their future?(bhp to take them?)"

i always thought this was the only way after UMC did not join the 4th force alliance,they wont be the last scooped up by BHP.tb

BRM probably next


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## grace (18 October 2009)

tigerboi said:


> i see BHP finally made an offer for UMC after i said this on the io transport thread last may.
> 
> "This is the 4th force i was saying that have to get together so that they can get the 50mt out each year,i noticed that UMC is not in the alliance does that say something for their future?(bhp to take them?)"
> 
> ...




Yes tb, good call.    I sold out early in this bounce.  Was always a good deposit and strategically located.  Well done to those holding the faith.

I personally think it is easier for BHP to buy out these advanced juniors, than fight in court about the access to the rail line.  That way, they take out the competition, and of course, the Chinese don't get a look in!  Buy price is not all that flash considering where the share price has been in earlier times.

Remind me to stick to my fundamental research someone.


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## Santoro (20 October 2009)

Yes..makes obvious sense that BHP would acquire UMC (funny that this tenement originally belonged to BHP) but the offer price does seem low, I am sure this is not the best offer up front. Interesting that Citi has become a substantial shareholder in the last week, are they aware of another forthcoming offer?


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## Broadside (20 October 2009)

grace said:


> Yes tb, good call.    I sold out early in this bounce.  Was always a good deposit and strategically located.  Well done to those holding the faith.
> 
> I personally think it is easier for BHP to buy out these advanced juniors, than fight in court about the access to the rail line.  That way, they take out the competition, and of course, the Chinese don't get a look in!  Buy price is not all that flash considering where the share price has been in earlier times.
> 
> Remind me to stick to my fundamental research someone.




I think it's the ones who did maintain the faith - and had faith that directors wanted to actually take this to production - that have been dudded.  

I won't be accepting the offer as it is woefully inadequate, and there is always the chance BHP will get trumped.  The key is where THX's holding ends up, and why Citicorp is buying again.  I don't know the answers.  if this takeover gets through at $1.30 it is very very smelly, particularly when the Chinese (CRM) were going to take a placement at a premium to that price ($1.35), and all the other iron ore stocks have been strengthening.  

One of the best high grade deposits in the Pilbara going for about $1.25 per tonne


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## dbcok (28 October 2009)

My cynical nature has me wondering whether the UMC board etc was every fair dinkum about bringing this one into production.
I hope that they weren't having a lend of us for all this time!


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