Ferret's Stock to Watch: UNITED MINERALS LIMITED09:44, Tuesday,...

Ferret's Stock to Watch: UNITED MINERALS LIMITED
09:44, Tuesday, 29 July 2008

A COMPANY TO SOON JOIN THE RANKS OF IRON ORE EXPORTERS

Sydney - Tuesday - July 29: (RWE Aust Business News)
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OVERVIEW
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A mining explorer that has kept improving in the present market
uncertainty must have something going for it.
The Ferret drew investors to United Minerals (ASX:UMC) in June at
around $1.88 when the company was furiously drilling to delineate a
resource which, as it turns out, is impressive enough to push up the
shares another 8c yesterday to $2.35.
As Ferret pointed out, United Minerals Corporation has transformed
itself from a diamond explorer (formerly United Kimberley Diamonds NL)
into a diversified mining explorer with iron ore, bauxite and nickel
prospects, almost all in Western Australia.
It also closely associated Thundelarra Exploration which holds
$20.4 million, or about 15 per cent, of United Mineral's market cap of
$135 million.
United Minerals has just announced that the drilling to date has
outlined a substantial high-grade direct shipping ore (DSO) Marra Mamba
iron ore deposit at the Railway prospect in Western Australia.
The initial JORC compliant inferred resource for Railway is 84.5
million tonnes of high-grade DSO at 60.15 per cent iron with the total
resource 111.3 million tonnes at 57.7pc.
The resource has low levels of impurities and is near surface
with a low strip ratio of around 1:1 or less.
The company's preferred development plan is for a production rate
of 5mtpa and 10mtpa.
The Railway prospect is extremely well located with respect to
existing infrastructure.
Two Rio Tinto railways lie within three kilometres of the
deposit, and a BHPB railway is within twenty five kilometres.
The recently reported Rio Tinto ground-breaking deal with another
ASX-listed iron ore junior to enter into mine gate sales has the
potential to provide a rapid path for UMC mine development along similar
lines.
Rio Tinto has publicly advised that the key criteria for a
similar deal would be the quality of the ore and proximity to
infrastructure.
UMC has both.
The prospect was first identified in October following an initial
drill program on tenement E47/1429.
Since then, 188 RC and diamond drill holes totalling over 16,000m
have been completed at the Railway prospect.
Widespread iron ore mineralisation has been intersected in this
drilling.
Assay results have been received for 111 holes based on a 160m by
100m grid spacing.
These results have enabled the company's consultant Lynn Widenbar
of Widenbar and Associates to complete an inferred JORC compliant
resource estimate covering a drilled zone which is 1.5 km long by 1.5km
wide.
Receipt of assays for the infill drill holes, together with data
from the new diamond drilling program, will enable the company to upgrade
the resource status to indicated or even measured within the coming
months.

SHARE PRICE MOVEMENTS
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Shares of United Minerals yesterday rose 8c to $2.35. Rolling
high for the year is $2.80 and low 72c. The company has 146.7 million
shares on issue with a market cap of $344.9 million.
The main high-grade iron ore body of over 84 million tonnes
consists of bedded and detrital high-grade Marra Mamba iron ore which
shows very low impurity levels in silica, alumina and phosphorous.
The ore is eagerly sought by the world's steel makers.
The ore also provides excellent blending characteristics.
There is potential to increase the tonnage from:
* Strike extensions that are open to the northwest and southeast;
* Depth extensions, as many holes finished in high grade;
* Infill drilling results where wide intersections were made but
assays are still awaited; and
* New discoveries within the proposed mine area.

BACKGROUND
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United Minerals Corporation NL was re-listed on December 9, 2004.
It is an exploration company with the projects located in Western
Australia.
The company added iron ore and bauxite to its diamond exploration
interests and consequently changed its name in November 2006.
United Minerals's focus is on exploring and developing high-value
bulk commodities being iron ore in the central Pilbara mining district of
WA and bauxite in the Kimberley region which is 25 per cent owned in a
joint venture with major aluminium producer Norsk Hydro.
In the early stages, the iron ore resource was estimated as 19Mt
@ 62.8pc Fe, using 60 per cent cut off at the Camp Hill prospect and
100Mt @ 60pc Fe at Fork North.
Part of the previously explored land now falls onto the BHP
Billiton ground.
ENDS

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