WPG has acquired Southern Iron Pty., after a share issue at 20 cents per share quite recently. Southern Iron acquired, a short time before being acquired themselves, the former tenements of S.A.S.E., a 90% owned subsiduary of Felix Resources (FLX); Tenements RL 103 ( Peculiar Knob) and EL3196 (Hawks Nest), in South Australia. They paid $750,000 plus royalties ( no mention of the royalties by WPG., or by WPG or FLX as to what percentage they are ) plus a 10% interest in Southern Iron, that FLX say is now worth $450,000 ( Whether this interest has been converted into WPG shares or not isn't quite clear ).
A little bit of a belated lift to 25 cents from 18 cents and now back a little to 22.5 cents. The purchase of Felix Resources Iron Ore Tenements are taken very seriously by WPG and they expect production of 2 mtpa by early 2008.
WPG are now heavy into Iron Ore production, going great guns that is. Now trading around 27 cents, well up on their recent lows. Western Plains Resources have good prospects as they move towards Iron Ore production early in 2008.
Their Hawks Nest Tenement holds about 800 million tonnes of iron ore, that varies between low and high grade.
First production will be from their Peculiar Knob tenement that is set for production of 2mtpa - starting early 2008 - for the next 9 years.
Has WPG now got the Felix Resources ( FLX ) factor. Why? Well, they have bought a chunky iron ore reserve out there in South Australia called Hawks Nest, along with smaller high grade tenements, such as Peculiar Knob. So far, the area is known to have around 800 million tonnes of iron ore from low to high grade. Mining is set to start early in 2008 and reaching 2 mtpa just from the small Peculiar Knob reserve. MGX just closed an iron ore pricing deal up 9.5% for 2007 and HOPEFULLY, all augers well, for this gold miner become iron ore specialist by means of a vertical learning curve.
S.A.S.E. retains a royalty interest in iron ore sold. S.A.S.E. is owned 90% by Felix Resources and Ausmelt ( AET ) have a 5% interest. FLX own an interest in WPG through their sale interest in Southern Iron via the WPG takeover of the latter.
WPG have hit 34 cents, up 5 cents on the week, in what is now a strong upward movement. The Iron Ore interests have pushed them on up, and that's not the only factor in this interesting gold come iron ore stock.
WPG are continuing to pull away from a 12 month trend. Up 3 cents at 37 cents this morning. Expectations of an announcement soon on the results of further exploration at the High Grade, Iron Ore Tenement, at Peculiar Knob.
I sold out far too early on this stock and still regret doing so, missed a flyer. WPG have their second tranche of funding in place and are soon to develop their first iron ore tenement, at Peculiar Knob. $1.29 was paid and the funder must be wondering a bit as Western Plains reach 85 cents. Worth watching, imho.
Western Plains Resources are recovering strongly from their low point and have enough cash to develop their Peculiar Knob tenement. Production is due to start by the middle of 2008.
WPG have further iron ore interests at their 800 million tonne tenements at Hawks Nest where low grade iron ore is inter-dispersed by very many high grade pods similar to Peculiar Knob, at Sequoia, Kestrel, Buzzard and Kite.
None of the content posted on this website should be considered financial advice. Click here for more information. Opinions expressed are those of the respective authors and do not represent the views of Aussie Stock Forums management. Digital Point modules: Sphinx-based search