The history of why ROY hold so much ground in this known iron...

The history of why ROY hold so much ground in this known iron providence goes back to the Thundelarra days when they pegged a huge parcel of ground for gold exploration. The ground has been held for many years.

A couple of years ago they attempted to spin off their gold interests and sold the ground to United Gold, existing Thundelarra shareholders received shares in United Gold at that time.

The move to float United Gold failed.

This year Gindalbie “GBG” sold off their gold interest to concentrate on their iron holdings in the area and from their recent announcements they have been very successful.

I would suspect that “GBG “ success prompted the United Gold Directors to have a good look at their holdings for Iron Ore. The story goes they were surprised of just how much iron was there.

Using the iron ore and gold as their main thrust they changed the name to Royal Resources “ROY” and with the help of an underwriter made it to the boards.

Mt Gibson “MGX” is in the same general area. They have just announced they have sold a 73% interest in their magnetite deposit to China’s 3rd biggest producer the Shougang Group for $52.5 million.

“GBG” are in bed with China’s 2nd biggest steel producer Anshan Irion & Steel. They have just announced a 1 billion ton magnetite resource at Karara which is next to “ROY’s” ground and infact “ROY” and “GBG” have a JV on some magnetite prospects in this area.

I have been closely following “ROY” since the float and the sell off was expected as Thundelarra shareholders got a lot of shares for free, lately though I have noticed some Directors topping up their option holdings. If it was good enough for them it was good enough for me so I followed them.

The talk is ROY has a lot of iron ore on their ground, what grade and just how much is still to be established.

The Chinese like the area, the new Port is planned for North of Geraldton and I think it is just a matter of time before ROY is another big player.