Not possible to get secure better iron ore tenure....than what they have. According to the company....the potential for extensions to BHP's Mining Area C and further discoveries cannot be overstated.
In this area, you don't have isolated deposits of 4 or 5 million tons. Within a several hundred of meters of the boundary of UMC leases, are proven deposits of 100's of millions of tonnes of high grade, direct shipping (BHP) iron ore.
The total of all MGX (including AZR deposits) resources are about 95 million tons.......Portman 150 million tonnes. Market caps (includes AZR) of $750 million and $850 for Portman. Both are high cost producers....very different story up in the Pilbrara with wide gauge rail and deep modern port facilities.
WA Government want more Pilbara players and rules are such that UMC can leverage these facilitites.
Offers of China funding to develop these big UMC deposits would iriate BHP and others.......big story could just be around the corner for the company. Just need to wait a little longer.
UMC Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
