jupiter set to make its mark...

WOW - massive write up just out for JMS on Mining News! :-)


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Jupiter set to make its mark

Monday, 19 March 2007

THE first two months of 2007 will define Jupiter Mines, not just for the year but for its aspirations to become a serious and successful diversified mid-tier miner in Western Australia. By Charles Amery - RESOURCESTOCKS*



Jupiter Mines' landsat image of its Brockman iron project



It moves into its third full year since ASX listing on a roll.

In November/December 2006 its share price surged ahead; it signed a joint venture with the Chinese Wuhan Giant Economic Development Company; it confirmed "massive haematite mineralisation" at its Brockman Pilbara project; and it set down an all-encompassing drill program on its iron ore, gold and nickel projects all due to begin this month.

The results will set the future timetable and consolidate priorities.

Sydney-based but with all its current eggs in a WA basket of resources, from the Central Yilgarn to the Goldfields and Pilbara, Jupiter last year consolidated its potential, underpinned investor interest and shareholder belief, and saw its focus veer strongly towards its iron ore interests.

In late 2004 former GIO fund manager Warren Staude and ex-managing director of Titan Resources Bill Ryan teamed up with Austmine chairman Alan Broome to list Jupiter Mines.

It had acquired three advanced projects: Klondyke Gold in the Pilbara, the Widgiemooltha nickel project, and gold prospects in Leonora.

Its second full year of operation in 2006 marked a move in focus, priorities, management structure, directors and direction.

Changes saw founding shareholder David Evans call an emergency general meeting to remove Staude as CEO and the company began to turn around.

Ryan also left and the new executives, with Broome in the chair, began looking at the possibility of making Jupiter a pure iron ore entity and setting up a separate company in which to hold their other assets ? gold and nickel.

Iron ore is now the company vision, the emerging cash provider for its ongoing exploration activities and the value driver for shareholders.

"We are seen by the market as a diversified miner and somewhat see ourselves that way. Jupiter has an iron ore focus but we are not going to write off other projects," executive director of Exploration Jeremy Snaith told ResourceStocks.

"We are not afraid of tackling projects simultaneously. January and February will be defining months to know which way we are going. We have the money and we have four separate drill programs in place ? iron ore [two], gold and nickel.

"The whole reason for setting up the company was to get out there and start exploring. For that you need money. If you get low you need to raise more. We get out there and are reasonably aggressive in our exploration, not afraid of raising money and not afraid of spending it.

"The December 2004 float was mainly based on the Klondyke gold resource with approximately 300,000 ounces south of Marble Bar, and the Widgiemooltha nickel project next door to Mincor and Consolidated Minerals. There were also gold tenements in Leonora."

Jupiter is doing a diamond drilling program at Klondyke this month, going down 700-800m to test the ex-Rio Tinto project at depth. It has a well-known geological structure and if Jupiter hits something at depth Snaith doesn't rule out feeling the waters for a joint venture partner.

Snaith, also a founding shareholder, said the company was not giving up on gold or nickel. After the float, work at Widgiemooltha discovered some massive nickel sulphides that gave it the confidence to explore.


Jupiter set to make its mark - Part 2

Monday, 19 March 2007

NOW with some encouraging conductors using TEM surveys, drilling plans are also being put in place in the region this month, with the upbeat Snaith commenting that the company may even look at acquiring other nickel properties.



Jupiter Mines' landsat image of its Brockman iron project


But 2006 was the year of the iron ore push for the company and the two men who have turned Jupiter around and given it focus and teeth are hardworking and driven bachelor boys Snaith and corporate executive director David Evans.

It is turning into the Jupiter shareholders' equivalent of the "dream team" as shares climbed from a low of 7.5c to a high of 40c in early December before settling around the low 30s amid massive early December turnover, which included 120 million shares in the week ending December 8.

"In 2006 we did a couple of capital raisings and took an option over the Mt Mason haematite iron ore deposits 90 kilometres west of Menzies, which BHP Billiton last drilled, and then not seriously, in 1980," Snaith said.

"We did a first round of nine drill holes to see what was there, what grades and thickness, and did a small initial resource calculation. There were encouraging results with 29m of 63% iron, low phosphorous, which gave us confidence to take an option over Mt Ida to the south.

"Mt Mason is only a kilometre on zone and buying Mt Ida gave us 13km of strike. Mapping and sampling proved up three new haematite pods and also a narrower eastern site."

The initial JORC compliant inferred resource for a small portion (170m) of the Mt Mason haematite zone estimated it at 1.8mt at 60.3% Fe and the company's first priority is now to prove up Mt Mason and Mt Ida.

"We think we can get enough tonnage to go into production with the key to the project being just 90km from Menzies with its existing rail line to the Port of Esperance," Snaith said.

The RC drill program, calculation of resources/reserves, updating the scoping study, and mill construction and installation are all flagged for this year.

"We want to prove up 10 million tonnes in stage one and more after that. We are looking at acquisitions in the area to enable us to increase tonnage. Our aim is to export a million tonnes a year, not huge but good money to use for new acquisitions and increased exploration.

"We are looking at being in production early in 2008."

Snaith and Evans returned from China in December after talks with new partner Chinese trading company Wuhan, which will market its potential iron ore production from the Central Yilgarn after Sinosteel backed out.

Snaith believes the agreement with Wuhan will help it solidify the company and allow it access to Chinese funds.

The second arrow to the group's iron ore bow in WA is in the Pilbara, about 60km from Tom Price and part of their "be close" philosophy when it comes to mining infrastructure.

The Beasley River project ? which Jupiter now owns 100% ? is a continuation of and directly along strike from Rio Tinto's 400Mt Beasley River Channel Iron Deposit (CID) iron ore resource and the company is looking to prove up to 100mt of CID there.

After buying Beasley ? and before the blanket pegging by Fortescue Metals ? Jupiter "stumbled" on a zone at Brockman and recently confirmed "massive haematite mineralisation" with a zone more than 4km long and at least 300m wide.

This month it will explore the iron ore potential of Channel Iron Deposits in the project area with RC drilling programs initially targeting three zones and a total program that will explore about 15sq.km of potential material for iron ore grade CIDs.

"Initial results have been exciting but we have to drill to confirm or else we are just dreaming a bit. We are planning on doing up to 6000m of RC drilling and want at least 50mt or hopefully 100mt resource estimate," Snaith said.

"We could be on a winner and end up having both haematite ore and channel iron ore close together which might, and I emphasise might, put us in a position to interest one of the majors."

Having recently raised about $1.3 million through a placement by Queensland's Talbot Holdings ? incidentally the first institutional investor in a very private company shareholding structure ? Jupiter is also looking at underwriting the options issue to add to its cash position.

"We won't do any more dilutionary placements, which will be good for the market, and we are in a strong cash position with no need to raise further money. In 2007 I want to see Yilgarn closer to production and fruition, a strengthening of our Chinese partnership and possible acquisitions to grow our iron ore resource base," Snaith said.

Firmly based in WA but without an office there, 2007 may also see the confident miner moving into Asia where it has an option on an Aries Mining permit in Laos, waiting for an exploration licence in an area considered highly prospective to copper, gold and silver.

* This report, first published in the January 2007 edition of RESOURCESTOCKS magazine, was commissioned by Jupiter Mines


End.

Cheers, Pie