expectations

GIR has just reported 7.2m tons @ 57%. Whilst I also own GIR I think it is important to understand reported JORCs. Whilst 7mt sounds small for first part of drilling program, remember it equals 1m tons for 7 years earnings. Same scenario with BRM & over 40m.tons. A resource of say 100m tons given current location & potential grades is huge for UMC. If we assume 3mt for 30 years it still is only 90mt. Another poster recently made comment about ground/leases given up by WMC/BHP & how many company makers these areas have yielded. I know hindsight is a wonderful gift but would UMC currently have such a great opportunity were it not for a major giving up this area. So don't be disappointed with small initial numbers because they can grow over time. There is no need to find every ton of iron ore at once, just enough to prove you can generate cashflow from the project for more drilling. Patience is the key to being rewarded. I own a few iron ore situations currently & UMC rates well on comparisons at current time.
Regards
Buffett