Atma, I would have to disagree with you. I feel that UMC should...

Atma, I would have to disagree with you. I feel that UMC should be valued far above the $220m it is currently at based on $1.45 per share (fully diluted) if it JORCs up 50MT.

AGO has 23MT proven with a target of 120-180MT DSO and they are valued at well over $1b fully diluted, granted they are further advanced to production than UMC. If 50MT is JORCed up by UMC I feel it should be fundamentally revalued to $2 comfortably. Whether the market will agree with me or not is another matter as they are widely expecting 100MT and so might punish the stock for not meeting expectations. But in the long term the value should flow through to the SP.

Yes I agree they need spur costings but that will not be sorted prior to negotiations with FMG which will not happen prior to JORC.

RICH08, sorry but I am not fully confident of 100MT. The consultants Promedas International identified 100MT as a target based on only the north south line that averaged over 20m in depth plus a 40m 'VISUAL' mineralisation in the single hole U199 to the east. Later the high grade portion was identified to be significantly less than 40m. In addition further drilling to the East shows averages (in the Eastern section) well under 20m. Also add to the fact that there is a section in the north south line that didn't intersect any high grade DSO and I am not confident that 100MT will definitely be proved up. Not saying it won't but am not fully confident either.

Bungy and others have done great analysis of surface area etc but based on average drilling so far. Drilling has been a lot more extensive in the Western section rather than only 3 or so holes in the Eastern section so the average figure obtained is skewed towards the thicker Western section.