To highlight the costs in transport for Murchison Metals, road trains truck the ore 200 km to Cue then, with a driver change, a further 300 km to Geraldton. There are 26 trips per day (or one every 55minutes).
Quite apart from UMC's much anticipated grades and tonnage, one thing we do know for certain is its location, location, location.
Plenty of work ahead for UMC to prove resource, however one would have to be naive to suggest that UMC will come out shy of 200Mt @ grades near to or better than 60% Fe.
The following highlights the extents that mining juniors are going to, in their hunger to jump on the iron-ore-bandwagon.
I have been doing a little research into IOH's iron ore tenement, Lamb Creek (E47/629), which is located some distance west of UMC's tenements.
Lamb Creek was originally granted in May'1993 to Goldsworthy under TR3156H (Mining Area C) and was surrendered (Nov'2000) when BHP took over Goldsworthy.
28 holes were drilled, totalling 2,506m, and BHP concluded that "no significant bedrock mineralisation or detrital ores located".
IOH have identified 4 target areas for Lamb Creek and the results of initial drilling (85 holes) were reported as disappointing, there were however indications of relatively thin channel iron deposit intervals of around two metres.
Even thou IOH have, to-date, confirmed what BHP already knew it will not stop IOH from continuing its quest to locate commercial iron ore on its Lamb Creek tenement.
UMC Price at posting:
0.0¢ Sentiment: Buy Disclosure: Not Held
