jupiters come back to earth...

Source: The Australian Financial Review newspaper [Page 16]
Date: Monday 7 July, 2008

Jupiter's come back to earth

Jupiter Mines is starting to become famous for its iron ore assets, not past shenanigans, writes Michael Vaughan.

A controversial incident on a flight to the United Arab Emirates last year that led to the arrest of two Australian business-men in Abu Dhabi made Jupiter Mines famous.

But with a new management team, some big names on its share register and a focus on a new iron ore region about 350 kilometres north-west of Kalgoorlie, Western Australia, teh new Jupiter is hoping to bury the demons.

Following the arrests of former Jupiter directors Jeremy Snaith and David Evans in the UAE for alleged drunkenness and sexual harassment on the Abu Dhabi-bound flight, newly installed management is keen to show the company is a serious enterprise.

Just after Snaith and Evans quit as directors, Greg Durack moved in as chief executive.

"I guess Jupiter got through the issues and just looked to move forward," Durack says. "I mean, it was disappointing with everything that happened but I think people knew what the issues were and they've been dealt with by the board. I wouldn't know [Snaith and Evans] from a bar of soap."

A year after the UAE flight debacle, Jupiter is receiving the kind of attention it really wants.

Former BHP Billiton chief executive Brian Gilbertson's Pallinghurst Resources has snared a slice of the company after aggressively buying shares on market over the space of a week.

Pallinghurst declared itself an associate of London-listed Red Rock Resources when it bought its 7.1 per cent stake.

Red Rock already held 9.6 per cent of Jupiter through a deal whereby the Sydney-based company acquired one of its iron ore projects in the Central Yilgarn region of WA. The combined holding in Jupiter has since been lifted to 18.1 per cent.

Pallinghurst was attracted to Jupiter's iron ore assets, about 200 kilometres east of Portman Mining's operations. The assets have also attracted interests from China's Haoning Group, which paid $3.7 million for 12.3 per cent.

Jupiter has a 2.2 million tonne resource at a grade of 60.6 per cent iron at its Mt Mason prospect and is drilling to extend.

It is hopefull of defining another deposit at its Mt Ida project and has a first right of refusal on another project in the area held by Red Rock, which is likely to be sold at some stage.

There are also a handful of other small explorers in the region, so with its backers there is the potential for Jupiter to consolidate a number of deposits.

"It's never going to be a Pilbara or anything like that, but for a small miner it presents a great opportunity," Durack says.

Jupiter hopes to emulate the strategy of Portman by trucking material from a mine to a railway, about 130 kilometres away, before being taken south by rail to the port of Esperance for export.

Initially the company will aim for a 1.5 million tonne a year operation, which could be up and running by 2011 or 2012.

Jupiter shares rallied from a low of 14c in late March to a high of 37c in late May while Pallinghurst was buying on market.


Ends.

Cheers, Pie :)