Cash Backing, page-13

I like your idea FarmerOscar,

I live in South Australia, and on the front page of the Adelaide Advertiser our leading newspaper had the following story: " Billionaire reveals bold vision to revive city as he today takes control and re names Arrium, My Whyalla Dream."

"British Billionaire Sanjeev Gupta has announced ambitious plans to revitalize Whyalla's steel works - including a new plant capable of lifting production by more than 400 per cent - as he today takes over Arrium."

From page 4 "Its very exciting to spend $1 billion - not a small amount of money - on upgrading this plant, but then to be able to build 4-5 million tonne steel (capacity), a gigawatt of power, build a 40 to 50 million tonne port, build 20 million tonne magnetite business - each one of those is enormous and a very, very exciting proposition" he said.

The key for alliance resources is the 20 million tonne magnetite business.

Let's not forget that back in 2014 Iron Clad/ Trafford Resources the current owners of Wilcherry back then on the 21st Aug 2014 announced the following: " Discussions with Arrium regarding potential iron ore sale. Iron Clad Mining is pleased to announce - as manager of the Wilcherry Hill Joint Venture - that IronClad Mining and Trafford Resources (as the Wilcherry Hill Joint Venture) are progressing discussions regarding the potential sale of their direct ship iron or to Arrium Mining (formerly OneSteel Limited) in Whyalla, South Australia.

If an agreement is reached with Arrium, it is the Joint Ventures intention to mine an initial trial pit at Wilcherry Hill. The trail pit would generate high-grade iron ore for direct sale to Arrium Mining and produce additional bulk samples for ongoing beneficiation test work.

From Kimba to Whyalla is 144km from Kimba to Lucky Bay (The original place of shipment is 102km). So it is not inconceivable to think that we can drive it to Whyalla.

Also if you go to the arrium website it has now been redirected to GFC Alliance website. The new owners of Arruim. If you look under the website link SIMEC mining (a subsidiary of GFC Alliance). You get the following statement.

SIMEC Mining owns and operates a 10m mega tonne per annum iron ore mine in the Middleback Ranges in South Australia, approximately 60 kilometers from the town of Whyalla.
These operations incorporate the Iron Baron, Iron Knob and South Middleback Ranges mine sites. They mine both hematite and magnetite iron ore which is respectively railed and piped to Whyalla. The majority of the magnetite is pelletised (c.1.3mtpa) and used within the steel works. The hematite ore (c.10mtpa) and excess magnetite is loaded onto ships for transport to a primarily Asian customer base.
Total reserves and resources are just under half a billion tonnes.

The most important bit about above is the 1.3 mtpa magnetite. If this is what they are using now for the steel. If they increase the output by 400% they will need 5 million tonnes of magnetite. Ironclad original plan was to supply one million tonnes of magnetite DSO for the first 4 to 5 years. If Arrium needed it in 2014, wouldn't this new owner need it more after upgrades have been done?

Does any one have any other idea of where they might get Magnetite from if not from us? Do they have the ability to increase there currently mining to the required output? And if they can for how long?
Thoughts? My suggestion is for Alliance to sell the rights to iron ore, and keep a royalty on it plus an upfront fee. Allowing us to get additional money for gold, tin drilling etc.