the facts

I was reading through the 2009 UMC Annual Report which was released to the ASX on 25-9-09 which in the Chairmans address by the new Chairman, Alan Birchmore he states:

“This annual opportunity should not pass without thanking the people who have achieved so much and in record time. Finding a mine is accomplished by only a few in a lifetime of exploration. UMC’s East Pilbara tenements have an impeccable address with Rio Tinto and BHPB iron ore mines and infrastructure operating close by, but there was no outcropping to guide our geologists and the virgin find at Railway Deposit is a great credit to the Executive Director – Exploration Mr Barry Fehlberg, the Exploration, Manager Dr Fop Vanderhor and their exploration team.”


I have been following the UMC story for some time and this statement was wrong.

I then went back to the 17-10-07 ASX release by UMC “Extensive Iron Ore Mineralisation Discovered” which quoted a drill hole intersection of 20m @ 61.1% Fe and further went on to say “The area is now named the Railway Prospect”.

At the end of the report was the usual .............................

" The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Jim Richards, who is a Member of The Australasian Institute of Mining and Metallurgy and is a full time employee of the Company. Mr Richards has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Richards consents to the inclusion in the report of the matters based on his information in the form and context in which it appears."

This report, by the way, was a 20 page detailed report documenting and synthesizing the results of a systematic RC drilling program including all results, numerous plans and cross sections and illustrated a comprehensive understanding of the geology and the results. No guilding the lilly here and clearly Jim and his team were in control of the data and the geology and were responsible for the discovery. End of story!

I don’t know about you, but to me the refusal to acknowledge, coupled to the intent to change the facts in regards to who actually discovered the deposit is a low miserable act and is perhaps symptomatic of why the company finds itself in its current position. It is dishonest and an orchestrated stupid attempt to change the facts of the initial discovery. It is also misleading and deceptive.

Why, given the success of the project, the company and the additional potential remaining has it all turned to a big bloody mess which no doubt will cost the company a lot of time and money.

Only lawyers and corporate advisors will do well out of the next step.

The intent of the chairman of the company to distort the facts, despite the clear evidence, suggests a deep cancer within. The fact that the company did not advise the market that BHP had approached them and conducted due diligence on the Railway Prospect says it all.