UMC - United Minerals Corporation

[dj_420]

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?

 

[Pat]

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

 

[mick2006]

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'
company Maker

Most junior companies count themselves lucky if they have one potential company-making project. By Michael Weir.

Western Australia-based explorer United Minerals Corporation has two potential world-class, company-making assets that could both transform the company into a major mining house.

United Minerals has been through somewhat of a transformation in the past year. What was listed as a diamond explorer focused on WA's Kimberley region two years ago is now a company that can offer investors broad commodity exposure, including a slice of two of the world's hottest bulk commodities - iron ore and bauxite.

The geographical focus is still in WA's north, with the Kimberley and neighbouring Pilbara region now making up parts of the United Minerals portfolio.

The two flagship projects are a bauxite project in the Kimberley and an iron ore project in the Pilbara.
They are both relatively new to the portfolio but already the share market has certainly agreed with the changes.

United Minerals was trading at around 9c in December 2005 when it unveiled its bauxite plans. That news pushed the price immediately to around I5c. The more recent move into iron ore saw the share price spike again to a peak of 36c.

With the recent bouncy market the share price has settled at around 26c, but with just 97.8 million shares on issue the company carries a market value of less than $24 million, clearly highlighting the upside potential the two projects could bring.

"What we have now in the portfolio are two extremely high quality, bulk commodity projects," executive director Matthew Hogan said.

"They are both well located, have exceptional potential and each could easily be a company maker in its own right.

"We are now positioned with the right team and the money in the bank to aggressively pursue these opportunities over the next year and hopefully deliver some spectacular results to shareholders."

And United Minerals likes to look after its shareholders.
Earlier this year the company made a one-for-three options issue to existing shareholders at 2c exercisable at 20c. The issue raised more than $600,000 and means the company has almost $5 million
in the bank, enough to fund its plans for the next 18 months.

At that time, if the company continues to deliver results, there will be a swag of options due to be exercised that could pump another $8 million into United Minerals' kitty.

Chief executive Jim Richards, an experienced explorer with several discoveries to his credit, is clearly excited when talking about the company's bauxite potential.
His team of geologists and technical staff were scouring the Kimberley for diamonds last year but, unlike many explorers who had traipsed the ground previously, were not blinkered in their search and kept an eye out for other opportunities.

It was then they came across the bauxite and, seeing the potential, pegged as much ground as possible, ending up with more than 6800 square kilometres in the North Kimberley Bauxite Province.

The area's bauxite potential is already well known. The world-class Mitchell Plateau project, which hosts a resource of some 460 million tonnes, is located in the vicinity.

But there is another very important piece to this jigsaw - energy, and more specifically, gas.
The bauxite project sits in the North Kimberley where, just off the coast, lie some massive undeveloped gas fields. Inpex is proposing to develop the Ichthys gas-condensate field which hosts about 9 trillion cubic feet of gas, while Woodside Petroleum's Brecknock and other Browse Basin projects have more than 20tcf of gas and 300 million barrels of oil.

"During the course of the year United Minerals has placed increasing importance upon its bauxite project, especially as the intention of Woodside and Inpex to develop major gas fields has firmed," Richards said.

"These gas projects in the Browse Basin have world-class gas reserves and when production commences, industrial-scale energy is expected to be available to this mineral-rich area for the first time.

"It must be stressed that the development of a major gas project in the vicinity of United Minerals' bauxite project is highly significant and this is the major driver for the project.

"Such vast energy resources could open up the viability of an alumina refinery and possible aluminium smelter, thus substantially adding value to both bauxite and gas."

Richards said such a proposal was also expected to be most favourably received by both the State and Federal governments.

A major exploration program has been mapped out with the aim of proving up a world-class bauxite resource in the North Kimberley, and one capable of sustaining a stand-alone alumina refinery.

Already the company has drilled a Phase I reconnaissance program with a total of 508 holes for 3486m at the Grass Hill and-Couchman Range bauxite projects. This has shown there are significant amounts of bauxite within the UMC project areas and a number of the holes do also show some depth of bauxitic material.
Benefication would increase the potential tonnages of bauxite available and previous studies (not UMC) in the region have shown these types of bauxite ores do react well to a simple and inexpensive crushing, washing and screening procedure.

Further assay work (XRF) is currently underway on selected samples to assess the amount of Total Chemical Alumina (TCA) present. This will assist in judging the potential upside of benefication.
Furthermore, the Mitchell Plateau South Project was not able to be accessed in 2006 and is yet to be drilled.
The next 12 months should see a steady stream of results from the bauxite project and investors will be able to clearly see how the picture is building.
Iron ore is the other string in United Minerals' bow and you couldn't get a much better location than the company's newly acquired Pilbara project.

United Minerals has managed to put its foot on 263sq.km of ground right next to BHP Billiton's producing Area C mine. Bought from DFD Rhodes, the deal cost United Minerals just $200,000 cash, 5 million shares at I6c and a 1.5% production royalty.

"This is a major acquisition for the company, especially given these tenements lie in the heart of the Pilbara iron ore province," Richards said.
"Drill targets will be defined by the end of 2006 and we will move ahead to undertake clearances and to drill the best targets as soon as possible."

Richards said the key to the iron ore project was the four major items of Pilbara infrastructure that either pass over or are adjacent to the company's ground: BHP Billiton's Area C mine, Rio Tinto's railway including the West Angelas spur line, BHP Billiton's railway and the Great Northern Highway to Port Hedland.

"There is lots of iron ore in the Pilbara, but much of it is stranded, whereas we are essentially at Pilbara Central, in terms of both mines and infrastructure," Richards said.

Developing a full-scale mine may not even have to be considered.

The major miners have started showing a willingness to deal with the juniors and United Minerals' task could be as simple as proving up a resource and selling at the gate to a major.

Driving the United Minerals story is a heavyweight board of highly experienced mining professionals.
Chairman Phil Crabb is a mining veteran with a host of discoveries and mining projects to his name. Also on the board is iron ore marketing expert Mai Randall and
veteran businessman Alan Birchmore, who has wide experience in developing major projects.

 

[mick2006]

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.

 

[mick2006]

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.

 

[dj_420]

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.

 

[dj_420]

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.

 

[dj_420]

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

 

[mick2006]

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.

 

[Pat]

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 ?...

 

[Pat]

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

 

[dj_420]

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.

 

[dj_420]

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.

 

[mick2006]

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?

 

[Pat]

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.

 

[robjb5]

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...

 

[mick2006]

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.

 

[mick2006]

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.

 

[powerkoala]

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

 

[mick2006]

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?