iron ore direct shopping pilbara 50 m cap

At todays share price close of 62 cents - means they have a fully diluted market cap of $51 (about $6 million cash).

YML have drilled or have drill results from 14 holes over an area of 2km strike by 600 meters width in the Pilbara.. The average weighted grade of 58.4% Fe and average thickness of 14.4 meters. On this basis, works out at about 30 mt of iron ore.

30 mt is a third of total MGX deposits, at their three mine sites.(more than Tallerage Peak ever had) Cheaper and easier in the Pilbara to get your product to market.

40 more holes are being drilled now.....so they can declare a JORC resource.

Drilling of 6 other very promising adjoining areas will also take place at this time. The company may well discover 100 of millions of tonnes of direct shipping grade iron ore. Full results of the current drill programme will be released in August.


The iron ore is mostly under a shallow 50 meter layer of soil......exactly the same as FMG. This from FMG:

"The flat lying nature of the deposit lends itself to layouts similar to those used in the strip coal mines in the Powder River Basin (USA) and in Queensland (Australia). In those operations waste material (overburden) above the ore is stripped off by using large draglines that deposit the material in the adjacent strip which has already had the ore (coal) removed. In the PMA operation the overburden will be removed by either bucket wheel excavators or large excavators (shovels or back hoes). It will then be loaded into a hopper then onto a conveying system that will deposit it in the mined out strip. The conveying system is mobile and is programmed to enable the deposited material to take up a similar land form to that which existed before the overburden and ore was removed.

The iron ore is thereby exposed as a reasonably flat tabular body. Its chemical and physical characteristics having been determined by closed space drilling it is mined in an orderly sequence as determined by the mining engineers to ensure that the product meets customers’ requirements. The extraction method of the iron ore is to be undertaken by equipment normally associated with coal mining.
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The 30 mt JORC compliant iron ore deposit will allow the company to do a deal with either BHP/RIO or FMG who have railways that adjoin or run through YML land.

In ground value of 30 mt of iron ore is $1.8 billion. Costs the big three about $10 per tonne to export the product to their Asian customers. YML will need to pay them a premium for use of their rail and port.....but still should see nett profits of $30 million per tonne.

JORC means deals can be put in place now. Company say they have had approaches to assist with development of the project.

At a cap of $50 million.....this type of overlooked stock is hard to find.

Their prospects to move to rail iron ore production are very real. Would make them the first of all the small Pilbara hopefuls to get an export operation.... using rail underway.