yalgoo provides upside for 2010

The Yalgoo Iron ore project which is less than 10km away from railway line provides upside. The target as per announcements could hold up to 40m tons DSO. As the Midwest Iron ore alliance allows all users to use the railway and also the Oakajee port ( which Colin Barnett promised in his election campaign to get up and going ) thus making mining of any resource feasible.

Assuming a 20m ton resource and using Atlas costs of $43 per ton to mine then a 1m ton pa production could yield ebitda of $50m with iron ore selling at $100 a ton.

Cash looks a problem but options could be exercised to provide funding.

Has potential and certainly Hogan family has done well out of UMC so have deep pockets to follow any funding