A SMALL EXPLORER LIFTING IRON ORE RESOURCES IN PILBARA Sydney -...

A SMALL EXPLORER LIFTING IRON ORE RESOURCES IN PILBARA



Sydney - Tuesday - September 22: (RWE Aust Business News)
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OVERVIEW
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Iron ore in the Pilbara is still a highly prospective
combination.
Only a few fall by the wayside, while the speculative side is
seriously encouraging.
United Minerals (UMC) is a bit of a goer and modestly priced for
something better.
It is one of the rare stocks these days that have an NL code (no
liability instead of limited), used in olden times to protect investors
who had partly paid shares.
If the company went bust, they didn't have to pay any more money.
United Minerals has just confirmed to the ASX a significant
increase in the total and DSO (direct shipping ore) resource at its
Railway iron ore deposit in Western Australia.
Since the February 2009 resource estimate there has been an
increase of 29pc in the total resource category to 158mt at 58.03pc iron
(indicated and inferred), and an increase of 32pc in DSO bedded Marra
Mamba ore to 100.7mt at 60.3pc (indicated).
The resource upgrade gives the company confidence in planning a
3mtpa mining operation.
To the end of July 2009, 391 RC and diamond drill holes have now
been completed at the Railway deposit.
The 157 additional drill holes have presented the company with a
large increase in the geological and assay data base, enabling new
detailed modelling to be completed.
The most recent drilling also outlined significant extensions to
the Railway mineralisation, especially in the Boundary Zone where thick
high grade bedded iron mineralisation has been recently reported.
"This resource upgrade is a wonderful result for the company and
it is particularly significant that as drilling has progressed we have
increased the total resource tonnages by nearly 30pc," said technical
director, Barry Fehlberg.
"Also, the strong increase in indicated high grade bedded DSO
Marra Mamba ore augers well for a high conversion rate of indicated
resource to measured resource as drilling continues.
"United Minerals also believes the significant resource upgrade
at the Railway deposit gives the company confidence as it continues its
planning for the commencement of production in early 2011."


SHARE PRICE MOVEMENTS
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Shares of United Minerals Corp yesterday rose 3.5c to 95c.
Rolling high was $1.505 and low 30c. The company has 155.1 million shares
on issue with a market cap of $147.3 million.

As announced to the market on 8 September 2009 United Minerals
has entered into a conditional placement agreement with one of China's
top steel buyers China Railway Materials Commercial Corp (CRM).
Under the terms of the agreement UMC agreed to a $27.2m placement
to CRM, with one of the key conditions being the finalisation of a
10-year 3.0 million tonnes per annum off-take agreement by 7th December
2009.
United Minerals and CRM are currently working through the various
conditions precedent to the agreement with the aim to have these
finalised on or before the previously announced deadline.
In September, there was a board reshuffle.
The Board of UMC advised that Philip Crabb has announced his
decision to step down as non executive chairman of the company and deputy
chairman Alan Birchmore replaced him immediately.
He is an experienced company director of listed Australian,
British, European and American Companies, with a majority in the mining
industry.

BACKGROUND
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UMC was incorporated in November 2003 and listed on the
Australian Stock Exchange on December 9, 2004.
The company's current focus is exploring and developing high
value bulk commodities in Western Australia, being iron ore in the
central Pilbara region and bauxite in the Kimberley region.
United Minerals Corp is the 100pc owner and discoverer of the
Railway iron ore deposit in the central Pilbara of Western Australia.
The Railway deposit is located within 3km of existing rail
infrastructure and is best positioned to benefit from future access to
this infrastructure.
ENDS rx