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Iron Ore

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outlook for iron ore certainly very good. wondering if someone could help out with more info regarding iron ore types.

Apparently the stuff been mined and shipped now from BHP , Rio etc is Direct shipping ore, that is dug up and loaded for shipment right away. These operations have small up front cost and quick start up time. This ore can be found in Iron Channel formations such as in the pilbara.

In opposition to this i heard that magnetite projects can't have the ore directly shipped because it needs processing before its of use to the steel makers. The chemical composition of DSO is much different to that of magnetite projects. Because of this Magnetite projects cost more upfront and take years to get off the ground.

This came about becuase of the MMX takeover, the company believes in the next couple years its the DSO plays that will make the most where as major magnetite operations wont become a big part of the market for 10-15 years. Apparently the chinese are more interested in the DSO.

Companies i know of with DSO are.
BHP
RIO
YML
AGO

any thoughts?
 
KIWIKARLOS said:
outlook for iron ore certainly very good. wondering if someone could help out with more info regarding iron ore types.

Apparently the stuff been mined and shipped now from BHP , Rio etc is Direct shipping ore, that is dug up and loaded for shipment right away. These operations have small up front cost and quick start up time. This ore can be found in Iron Channel formations such as in the pilbara.

In opposition to this i heard that magnetite projects can't have the ore directly shipped because it needs processing before its of use to the steel makers. The chemical composition of DSO is much different to that of magnetite projects. Because of this Magnetite projects cost more upfront and take years to get off the ground.

This came about becuase of the MMX takeover, the company believes in the next couple years its the DSO plays that will make the most where as major magnetite operations wont become a big part of the market for 10-15 years. Apparently the chinese are more interested in the DSO.

Companies i know of with DSO are.
BHP
RIO
YML
AGO

any thoughts?
Click to expand...

Hey for AGO, do you know what the mine life is?

Earnings and Dividends Forecast (cents per share)
2007 2008 2009 2010
EPS -13.9 10.3 19.4 --
DPS 0.0 0.0 0.0 --

Thx

MS
 
For all the usual suspects check your PM box, there is a piece of research on probably the last of the undiscovered iron ore plays, with sampling results due within a two weeks and drilling to commence next month this little gem will start to catch the eye, not to mention some exciting gold/copper results also due shortly.
 
Hey mick can I scam a copy of your research?

Pleeeeeeeeeeease:eek:

Im just a poor little kiwi boy trying to make a buck.
 
AGO has DSO and magnatite projects, also helps that is was mentioned in the herald I think last week in regards to murchinson metals. I've been also looking at red hill iron but their JV tennements are a fair distance from infrastructure and is magnetite also. Although FWL looks ok its a Mag project hopes to ship in 2011 so there is a few milestones to get us there but good profitable project.
 
Just a quick look at what is perhaps the last undiscovered iron ore beauty left on the ASX, with several exciting iron ore JV's with PSP and ACS, after discussions with the company it looks like we will be hearing a fair bit of news regarding not just iron ore but gold and copper as well in the coming weeks.

Anyone of a number of different announcements could move the shareprice.


-Spoke with the company have been in the field and expect iron ore rock chip sample results within two weeks(have recorded samples of over 60% Fe already likely to move the market if they hit it again)

-Commencement of iron ore drilling and exploration at three locations Woolshed Prospect, Warriedar Prospect, MAGNETITE RANGE PROSPECT. (just the announcement will likely move the shareprice not to mention any further rock chip samples to be released)

-Drilling Results from Goldern Mile South JV (located only 4km south of the Kalgoorlie Superpit 75 million oz gold, the largest gold mine in Australia)

-Drilling Results from Kapulo Copper Deposits in Africa (with previous results up to 31% copper.)


Iron Ore

Payne's Find JV PSP(60%) MWE (40%)

The joint venture covers an area of 200 sq km in the Midwest Iron Ore Region with several prospects making up a total strike of over 17km.


Woolshed Prospect

With a current strike length of around 4km and a likely target of 50-60 million tonnes of DSO hematite ore with samples grading up to 59.9% Fe.

Drilling to commence shortly as confirmed by company, likely to draw attention to company due to frenzied state of iron ore plays.


Warriedar Prospect


The Warriedar Prospect is in close proximity to both Gindalbie's massive Karara project and Mt Gibson's major projects.

Current Strike of around 8km with samples confiming both magnetite and hematite iron ore, with samples ranging from 40%-62.8% Fe.

Activity is starting to increase at the Warriedar Project with further rock chip samples to be followed by a round of drilling(to follow drilling at Woolshed), any further high grade samples likely to be a share price mover.


MAGNETITE RANGE PROSPECT,
MOUNT GIBSON (ACCENT RESOURCES NL 80%,
MAWSON WEST LTD 20%)

A detailed aeromagnetic survey has recently been completed on the Company’s Magnetite Range prospect at Mount Gibson. The survey covered a strike length of 14 km of banded iron formation which is along strike from Sincom’s Extension Hill 250Mt magnetite deposit The survey delineated several target zones with strong magnetic responses which have yet to be tested by drilling. The survey also
showed good correlation between the drilling results of last years programme and the magnetic response. Targets that suggest possible hematite enrichment have also been identified.

Drilling is continuing at the Magnetite Range prospect.


Gold

Goldern Mile South JV (SBM 70%) (MWE 30%)

SUMMARY
Only 4km SE of the Kalgoorlie Superpit and amazingly underexplored.
Unparalleled infrastructure –several local operating mills, roads, railways, exploration services etc.
Strategic Joint Venture with St Barbara Mines proven undercover explorers). SBM to spend min $500k in 6 months, and $3M to earn 51% within 3 years. SBM can elect to earn 70% by spending a further $2M in 2 years. Competed 10,293m of air-core drilling, average depth 66m. Results due anyday


Copper

Strategic Joint Venture with Anvil Mining

Approximately 5,500km² of contiguous tenure in DRC and Zambia
MWE can earn 65% by spending US$4 million over
four years.
Approximately 60km of strike along the
regional Kapulo Shear Zone – which hosts the Kapulo copper deposits (and many other Cu occurrences)
The Kapulo Copper deposits comprise three main zones – Katanga, Safari North and Safari South
Drilling currently underway at the Katanga Prospect – 9 holes completed to date Main primary sulphide mineral is chalcopyrite, with varying amounts
of chalcocite, bornite and on average grades from 5-7% Cu. Oxide enrichment has formed cuprite, native copper, azurite, and malachite with grades up to 31% Cu.They calculated open ended resources (along strike and down dip) between 750,000t @ 4.7% Cu and 850,000t @ 5.8% Cu, to approx 50m depth (Approx 50,000Cu tonnes)
 
Sorry it is MWE just realised that the post doesn't carry the title like the private message.

Really looking forward to the results from the Goldern Mile South JV, being only 4 km from the Kalgoorlie Super Pit, and gold on the rampage again tonight any decent hits will send MWE flying.
 
How about PLV for an iron ore spec play - potentially massive iron ore resource on Irvine Island - adjacent island to the existing Cockatoo island and Koolan island mining operations. These have some of the highest iron ore grades in Australia with grades up to 68%.

They recently visited the island and the layer of iron ore is clearly visible in photo's of the island in that report. I like this comment from their last Irvine Island update:

“Our observations to date lead us to believe that there is potential for a high grade, low impurity, ore body that is greater than about 30 metres thick and measures in area some 2 kilometres by 3 kilometres"

Thats a lot of iron ore, and even better its on an island in NW australia so the transport logistics side of things looks pretty good as well - no need to cart it to the coast its already there.

They've also secured a native title agreement for exploration this year.

Has an impressive board that includes ex NSW premier Neville Wran.

Also is currently drilling an interesting copper/gold prospect in tassie at the moment.

Currently in the third day of a break-out on volume from the 1.40 level, probably due to anticipation of potential announcements related to drilling permit on Irvine, and/or because dove river drilling results could come out soon.
 
Hey guys i've found a very spev play GNL its actually a gold focused explorer but they have a tennement near Iron Mountains (the guys who went up 330% in a day) and they have drilled a few holes and found banded iron formations of high grade haemetite. Thats DSO boys but infrastructure and location a bit isolated. That said it jumped over 100% after ann and has since come back. Now at 4.6c could be a could spec play especially if they ann extension of Haemeitie they reakon the strike is 20kms long!
 
Doogie - re the article on takeovers - Mt Gibson did very well with their purchase of Aztec - who co-incidentally own the iron ore mine on Koolan Island which is adjacent to PLV's Irvine island. Koolan Island iron ore is supposedly 67 % to 69% Fe, some of the richest and purest ore going around. PLV's Irvine island is supposedly a continuation of the same iron ore as exists on Koolan and Cockatoo islands.

Mt Gibson picked up Aztec for under $300 million and now Mt Gibson is capitalised at $2 billion and the Koolan Island iron ore deposit being a big chunk, (around half) their their iron ore reserves.

PLV's valuation is $90 million at the moment based on $1.80 share price, so if it looks like Irvine Island can go ahead, and especially if it has the quantities of iron ore they're speculating on, then there's plenty of room for serious upside.

Its run strongly the past few days so might pause but its also very tightly held. The company intimated in their annual report that they expected some news on granting of exploration permits around the october timeframe.
 

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