Huang Chung
25-01-2007, 11:28 PM
I was made aware of this stock about a week or so ago, and noticed that there doesn't appear to be a thread running on it either. It seems an interesting story to discuss.
Here are a few of the main points......
Diluted market cap under $200m.
Main project is called the Wiluna West Project, and is located in the central part of W.A.
Principal focus - Iron Ore (hematite), with gold and uranium potential as well.
Potential major high grade iron ore project of at least 200 to 250 mil tonnes identified.
5 prospective mineralised units (units A to E)
Cumulative strike of 125km
Only units B and C to date explored and only in the northern exposed areas, representing 30% of strike.
Southern portions largely under cover.
Iron ore surface sampling over 10 km of strike returned samples up to 68% Fe.
The C4 prospect is up to 130 metres wide, 1.2 km long, open at depth and along strike, high grade +63% iron ore. Additional targets identified.
Development planned in 2 stages.
Stage 1.
Outline JORC reserves of 5 million tonnes of high grade direct shipping iron ore.
Produce 1 mtpa - transport by road to Leonora then rail to Esperance.
Stage 2. (requires the building of a rail line)
Define resources of 100 to 200 million tonnes.
Produce 10 - 12 mtpa.
Port options - either Esperance or Oakajee (proposed port) north of Geraldton.
If Esperence, rail to be built from project to Leonora to join up with the existing rail.
If Oakajee, th rail would run from the project to west of Meekatharra to join the planned rail near Weld range / Jack Hills.
Geraldton Iron Ore Alliance is lobbying the WA Govt for approvals to build the Oakajee port facility.
My personal opinion is that it sounds like it could turn out to be a marvellous resource, possibly hampered by its remote location. Distances are considerable, and so will be the costs. There also seem to be a lot of 'ifs' at this stage regarding the Oakajee option. As railways don't come cheaply, and GWR is a pretty small company, I would guess a JV with a Chinese / Korean / Japanese steel company might be an option, provided the tonnage justifies the considerable costs.
Shares currently trading around $2.40. From what I can tell, they were about 60c in the middle of 2006, so you probably could not say GWR was 'undiscovered'. None the less, it does sound like a prize piece of ground, and maybe, just maybe... worthy of a higher value than the market is currently willing to give.
I've bought in, looking for them to prove up a large, high grade resource that could attract a cashed up partner (or predator).
If GWR looks interesting to you, please do your own research, as there is much more information to digest than the few snippits I've mentioned above.
I'd be interested to read anyones views.
Here are a few of the main points......
Diluted market cap under $200m.
Main project is called the Wiluna West Project, and is located in the central part of W.A.
Principal focus - Iron Ore (hematite), with gold and uranium potential as well.
Potential major high grade iron ore project of at least 200 to 250 mil tonnes identified.
5 prospective mineralised units (units A to E)
Cumulative strike of 125km
Only units B and C to date explored and only in the northern exposed areas, representing 30% of strike.
Southern portions largely under cover.
Iron ore surface sampling over 10 km of strike returned samples up to 68% Fe.
The C4 prospect is up to 130 metres wide, 1.2 km long, open at depth and along strike, high grade +63% iron ore. Additional targets identified.
Development planned in 2 stages.
Stage 1.
Outline JORC reserves of 5 million tonnes of high grade direct shipping iron ore.
Produce 1 mtpa - transport by road to Leonora then rail to Esperance.
Stage 2. (requires the building of a rail line)
Define resources of 100 to 200 million tonnes.
Produce 10 - 12 mtpa.
Port options - either Esperance or Oakajee (proposed port) north of Geraldton.
If Esperence, rail to be built from project to Leonora to join up with the existing rail.
If Oakajee, th rail would run from the project to west of Meekatharra to join the planned rail near Weld range / Jack Hills.
Geraldton Iron Ore Alliance is lobbying the WA Govt for approvals to build the Oakajee port facility.
My personal opinion is that it sounds like it could turn out to be a marvellous resource, possibly hampered by its remote location. Distances are considerable, and so will be the costs. There also seem to be a lot of 'ifs' at this stage regarding the Oakajee option. As railways don't come cheaply, and GWR is a pretty small company, I would guess a JV with a Chinese / Korean / Japanese steel company might be an option, provided the tonnage justifies the considerable costs.
Shares currently trading around $2.40. From what I can tell, they were about 60c in the middle of 2006, so you probably could not say GWR was 'undiscovered'. None the less, it does sound like a prize piece of ground, and maybe, just maybe... worthy of a higher value than the market is currently willing to give.
I've bought in, looking for them to prove up a large, high grade resource that could attract a cashed up partner (or predator).
If GWR looks interesting to you, please do your own research, as there is much more information to digest than the few snippits I've mentioned above.
I'd be interested to read anyones views.