THE BOURSE WHISPERER: Australian iron ore producer BC Iron has updated the ore Reserve at the Nullagine Iron Ore Joint Venture.
The Nullagine JV is a 50:50 unincorporated joint venture between BC Iron and Fortescue Metals Group.
The upgraded ore Reserve follows an assessment of the updated Mineral Resource at the Bonnie East deposit.
The Ore Reserve for Bonnie East. Source: Company announcement.
The update brings the total ore Reserves for the Nullagine JV to 42.4 million tonnes at 57.0 per cent iron (64.8 per cent calcium iron).
The upgrade also extends the life of the Nullagine JV by 1.5 years.
BC Iron said the updated ore Reserve estimate is based on the results of the mining study that was completed on the mineral Resource estimate for the Bonnie East deposit.
The Bonnie East mineral Resource estimate is:
– Direct Shipping Ore (DSO) 10.8Mt at 57 per cent iron, (65 per cent calcium iron); and
– Channel Iron Deposit (CID) 15.9Mt at 55 per cent iron, (63 per cent calcium iron) – CID is inclusive of DSO.
“We are very pleased to report these updates for Bonnie East,” BC Iron managing director Mike Young said in the company’s announcement to the Australian Securities Exchange.
“Not only are we systematically replacing reserves, but we have increased the mine life at Nullagine which underpins our growth plans.
“Our Business Development plan has a dual focus of looking at other assets as well as ongoing work at Nullagine to optimise our current resources and exploration targets.
“Our technical team is working diligently to deliver an inventory of every tonne of mineable ore at Nullagine.
“This includes looking at other DSO resources at Warrigal North, Shaw River and Dandy, as well as assessing the beneficiation of sub-55 per cent iron low-grade material which is currently mined and stockpiled as waste.
“We expect that during the next financial year, we will have a complete assessment of every tonne of extractable ore at Nullagine with a commensurate increase in mine life.”