The quarterly sounds like a cleansing of the souls at our expense, I have no doubt this information was known well in advance and hence the need to get whatever they can for it while they can.
Avoid these directors in future would be my reccommendation!
Subsequent event to the end of the September quarter
The Joint Venture has not been able to identify sufficient amounts of economic grade bauxite in the Joint Venture tenements andthe parties have therefore agreed an intention to terminate the bauxite and alumina joint venture project in the Kimberley to tke effect from 31 December 2009.
Assays results received from Mt Robinson have been
disappointing and show only poor iron values.
Interpretation of the geological logs confirms the detrital nature of the mineralisation, but even though there are
large widths, the very low average grades and depth of
burial make it a low priority target for further exploration
The continuing feasibility study, in conjunction with the above project development work, indicates that the developmentof the Railway project, utilizing road haulage as the only transport option available to UMC today, lacks economic viability as a result of;
•markedly reduced iron ore revenue projections due to
current exchange rates which are now 90+c to the US dollar
compared to 75c to the US dollar only 6 months ago (iron orecontracts are priced in US dollar terms);
•a continued worsening of iron ore revenue projections if
our dollar moves to parity with the US dollar or beyond;
•currently no expectation that UMC can gain access to port
facilities to load 3 million tonnes per annum of iron ore ora quantiy of iron ore which is anything like it ;
•road haulage being a very expensive transport solution;
•the Railway deposit not being big enough to justify the
capital for its own railway and port.
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