Monday, November 03, 2008 New iron ore discovery in Pilbara lifts United Minerals
United Minerals (UMC) has announced receipt of significant assays, from vertical RC Drill Hole UI 362 at the Railway East Prospect, 2.3 km east of the Company’s Railway Prospect as follows:
Discovery Hole: UI 362 – From 77m to 105m, 28m @ 60.5% Fe Impurities: 77 to 105 m; 28m @ 0.6% Al203, 3.2% SiO2, 0.08% P
In addition to good iron (Fe) grades, UI 362 hole has very low levels of impurities, with the low average alumina value of 0.6% being a stand out result. UMC will determine whether mineralisation in Hole UI 362 connects between Railway East and the main Railway Prospect 2.3km to the west New iron ore drilling discovery – adjacent to BHP Billiton (ASX:BHP) prospect.
Nearby iron ore producers to United Minerals include: BHP Billiton (ASX:BHP), Rio Tinto (ASX:RIO) and Fortescue Metals (ASX:FMG).
The Company is in a good financial position with cash reserves of approximately $17 million (Sept.'08), enabling it (at least) to complete a Pre-Feasibility Study,project exploration and metallurgical programs, and environmental and hydro-geological studies by mid 2009.
United Minerals share price rose 6 cents, or 9.3%, to 70.5 cents.
UMC Price at posting:
75.5¢ Sentiment: Hold Disclosure: Held
