FURTHER to our online note during the week about the expansion of iron ore ground held by Magnetic Resources (MAU), and its proximity to existing grain railway lines in WA, we now hear that several Chinese steelmakers have been in touch with the junior.
The prize is the Jubuk deposit where drilling begins this week.
The potential length of iron formations there is now 70km, and the junior is already beginning to dream of at least 3 billion tonnes of iron ore. But let's wait to see what the drilling shows, shall we?
And we wouldn't be in the least surprised if Magnetic tries to pick up more ground in the area.
It already has four projects apart from Jubuk, all of them within cooee of railway lines.
Remember, too, that Magnetic has uranium targets -- something that attracted a number of Perth brokers last August, who took up a placement at 5.5c.
The stock is now at 33.5c.
Uranium drilling will begin as soon as West Australian state government clearances have been received.
Robin Bromby From: The Australian January 11, 2010 12:00AM
