JOHANNESBURG (miningweekly.com) – ASX-listed iron-ore junior BC Iron has received board approval to develop the Nullagine iron-ore project, in Western Australia, after the successful completion of a feasibility study.
The study has confirmed that the Nullagine project is an economically and technically robust direct shipping ore (DSO) project, which would produce at an initial rate of 1,5-million tons a year, then ramp up to a three-million ton a year, and then a five-million ton a year project, as roads and infrastructure were upgraded.
Subject to achieving statutory environmental, heritage and mining approvals, BC Iron would start the shipping of iron-ore from Port Hedland in the first half of 2010. The company was targeting exports of 1,5-million tons during the first six months of operations and would ramp up production to three-million tons a year upon the commissioning of a heavy haulage road to the nearby railhead at iron-ore producer Fortescue Metals Group (FMG) Chichester operations.
BC Iron and FMG recently signed an agreement that would, upon acceptance of the feasibility study by FMG, see them establish a joint venture (JV) to develop the Nullagine JV (NJV).
Following the endorsement by BC Iron, FMG would now review the feasibility study, and if endorsed by them, the NJV would be established. The NJV would use FMG’s subsidiary, The Pilbara Infrastructure to provide rail haulage, port handling, and ship loading facilities.
The Nullagine project hosts a DSO resource of 50,7-million ton, at 57% iron. The probable ore reserve was estimated at around 35,6-million ton, at 56,9% iron, and the deposit contains low contaminant levels, and occured at near surface, resulting in an overall waste ratio of 1:1.
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