December 04, 2008

Murchison rejects Midwest claims

West Perth based Murchison Metals Ltd last week confirmed its 375 million tonnes estimate over the 15 year mine life of its Jack Hills iron ore project by saying Midwest Corporation Ltd's statements about the project were incorrect.

A release said that “Murchison has obtained confirmation from independent specialist iron ore group Ferrum Consultants that Murchison's methodology is reasonable. Whilst Murchison believes that its prior disclosure in relation to targeted production is both reasonable and consistent with accepted market practice, Murchison is making this additional disclosure in light of statements made by Midwest in its Target's Statement as to the resource potential of the Jack Hills Project.”

The release added that “Murchison believes that the Midwest Board has failed to make adequate reference to the fact that AMC qualified its report in a number of significant respects and that any recommendation to reject the offer arising from reliance on the AMC Report should also have been significantly qualified.”

It concluded that “Murchison believes that Midwest's statements about the resource potential of the Jack Hills Project are incorrect.”