PDY 0.00% 0.7¢ padbury mining limited

big article in the west - business pages today, page-13

  1. 544 Posts.
    Padbury plan may yet get it a slice of Oakagee action
    PETER KLINGER ? The West Australian ? Monday, April 4, 2011
    Padbury Mining is shaping up a curious beast in the Mid West.
    It?s got iron ore ? not unusual in the region ? and, all things going to plan, an advanced technical study on rail and port infrastructure options. So why, then, is Padbury?s share price stuck at 2.9c valuing it at only $46 million?
    It last week announced the maiden inferred resource for its Peak Hill project in the Robinson Ranges ? 850 million tonnes grading at an average 27.3 per cent iron ? modest at best, although Padbury has been quick to point out the potential for beneficiation into high-grade concentrates.
    And how to get the iron ore to market? Peak Hill is about 150km north-east of Murchison Metals? Jack Hills project.
    Padbury is in the throes of acquiring the intellectual property of Yilgarn Infrastructure, a one-time Murchison rival in the contest for the right to develop the Oakagee port and rail network.
    Yilgarn, then headed by John Saunders lost the contest and has lain dormant ever since.
    Enter Padbury. Since June, Saunders has been executive chairman. Padbury has yet to gain shareholder approvalfor it?s acquisition of the Yilgarn Infrastructure IP. Presumably the $2.25 million deal will be waved through, which would leave Padbury the only other group ? other than Murchison?s Oakagee Port & Rail subsidiary ? to boast any serious level of financial modeling and technical, design and environmental work on the Mid West infrastructure options.
    While Murchison is unlikely to feel threatened yet ? its Oakagee IP is far more advanced ? it is struggling to make its OPR numbers stack up in time to sanction development of the $6 billion infrastructure development by the year?s end.
    Should Murchison?s struggles worsen, it may have to begrudgingly accepta farm-in proposal by a consortium of Chinese-backed Mid West miners desperate to help fund the infrastructure. And that could open the door for Padbury.
    After all, the Yilgarn IP Padbury is trying to buy was designed with the help of the same Chinese-backed Mid West miners trying to muscle their way in to Murchison?s Oakagee dream.
 
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