BC Iron commits to feasibility study for Pilbara project

July 1, 2008

July 1st (The Australian Business) – IRON ore explorer BC Iron has completed a scoping study for its Nullagine project and committed to a feasibility study.

The study envisaged a three to five million tonne per annum direct shipping ore operation, situated 140km north of the town of Newman in Western Australia’s iron-rich Pilbara region. The Perth-based company said the project had the potential to be a high-value, long-life iron ore business.

The project is likely to involve simple open pit mining, crushing and screening to a fines product. Ore would be hauled by road to Fortescue Metal Group’s planned Christmas Creek operation. BC Iron (ASX: BCI: quote) has a memorandum of understanding with Fortescue to negotiate rail and port access. The scoping study estimated capital costs of $85 million and the current resource would underpin a mine life of about six years. Shares in BC Iron were down 12 cents, or 7.5 per cent, to $1.48 in mid-morning trading today.

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