UMC - United Minerals Corporation

[Atma]

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]

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]

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

anyone know anything about this major shareholder?

A.

 

[Broadside]

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]

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]

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]

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]

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]

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]

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]

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]

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]

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

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]

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]

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]

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

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]

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]

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]

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]

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