Nullagine JV confirms Bonnie East DSO

THE DRILL SERGEANT: The Nullagine Iron Ore Joint Venture between BC Iron and Fortescue Metals Group has intersected direct shipping ore iron mineralisation during infill drilling of the Bonnie East deposit.

According to an ASX announcement from BC Iron the Bonnie East deposit is a Channel Iron Deposit, of Direct Shipping Ore quality, hosted within the same palaeochannel as the Outcamp and Warrigal deposits and is directly south of the Outcamp Mine.

 

Bonnie East deposit location. Source: Company announcement

 

Assay results from the drilling include:

10 metres averaging 57.4 per cent iron (65 per cent calcium iron) from 6.5 metres;

5.5m averaging 59.1 per cent iron (66.7 per cent calcium iron) from 1m; and

10m averaging 56.8 per cent iron (65 per cent calcium iron) from 3.5m.

The Bonnie East prospect currently boasts an Inferred Resource of 8.6 million tonnes at 57 per cent iron.

Resource modelling and grade estimation followed by mine planning assessment are currently underway, which BC Iron said it expects to be completed in the March 2012 quarter.

The recent drilling was undertaken on a 100m by 50m pattern to infill previous drilling carried out in 2008.

Pending the outcome of the resource estimate, the Joint Venture said it expects to be able to upgrade the Bonnie East resource category from Inferred.

“A successful mining study would extend the mine life of the Nullagine project as well as improving the project economics,” The Nullagine Iron Ore Joint Venture said in BC Iron’s announcement to the Australian Securities Exchange.

“The proximity to the current mill creates an opportunity to optimise the current mine plan before the more distal deposits, such as Coongan and the northern Warrigal mesas, are brought on line.”