Ann: Yalgoo Iron Ore Project Scoping Study Result, page-3

re: Ann: Yalgoo Iron Ore Project Scoping Stud... Hi Matt

Nice to see someone else interested in this one.

I have been in for a relatively short time but the Yalgoo project looks like a potential good one. Although it is only inferred resource, the initial results are very promising and the fact that they have Shandong Geology & Minerals as a JV partner is good from a financing point of view - $1.4B is not an easy ask in Australia but it is pin money when you have access to Chinese capital.

They also have some other very interesting prospects including Smoke Creek diamond which is next to Argyle which has inferred 5M carats and some encouraging results at Yarloo base metals (see recent announcement).

From my initial chats before everyone fell off line on this one, there is a lot of animosity against the MD Matthew Hogan over what happened to his previous company UMC (have a look at the UMC thread & you will see the vitriol against him). Although this gives me some concern, history is not always a good way of prediciting future events and I like the fundamentals of VMC.

Relatively low market cap, a suite of very interesting although relatively unproven prospects, a strong JV partner on the main/most advanced prospect and a decent level of upcoming funding due to open options which are all in the money. The fat that they were able to place 2M shares at $2 in January with options exercisbale at $3 is also encouraging.

Very much a speccy IMO but one with a very attractive potential upside in the medium to long term.

Cheers

T