UMC - United Minerals Corporation

[JJP]

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.

 

[chops_a_must]

When are they looking at coming into production?

 

[JJP]

$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.

 

[exberliner1]

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

 

[Broadside]

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

 

[exberliner1]

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

EB

 

[exberliner1]

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

EB

 

[JJP]

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.

 

[stiger]

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.

 

[JJP]

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.

 

[dj_420]

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.

 

[greggy]

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

 

[greggy]

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

 

[dj_420]

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.

 

[dj_420]

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.

 

[Pat]

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?

 

[dj_420]

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

 

[dj_420]

just wondering kennas whats your take on the UMC charts?

 

[Sean K]

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

 

[Sean K]

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