08/01/2009 - 09:37

BC Iron jumps on iron ore resource boost

08/01/2009 - 09:37

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Shares in BC Iron jumped as high as 28 per cent today as the company boosted its iron ore resource at its Nullagine project by 64 per cent.

Shares in BC Iron jumped as high as 28 per cent today as the company boosted its iron ore resource at its Nullagine project by 64 per cent.

The company shares shot up from 34.5 cents to a high of 44c, before closing at 38c today.

The boost follows a substantial increase at the Bonnie Creek iron ore project, contained within Nullagine, to 46.2 million tonnes grading 57 per cent iron.

This compares with the March 2008 resource of 28mt at 57.4 per cent iron.

BC Iron said in a statement today that the updated resource includes the maiden resource estimate for the Warrigal deposit, contained within Bonnie Creek, of 16.4mt at 57 per cent iron.

"This updated resource now achieves all of our high priority exploration targets for the Bonnie Creek Project, including a maiden resource estimate for the Warrigal Well Deposit and increased confidence in the existing resources at Outcamp and Coongan," managing director Mike Young said.

He added that the company's focus over the next six to 12 months will be on delivering the feasibility study and advancing towards production as soon as possible.

The company has previously said that preliminary estimates for a 1.5mt per annum operation peg capital costs at between $20 million and $30 million, with operating costs at some $40 per tonne.

BC Iron was previously considering a 3mtpa start up operation which had a price tag of up to $100 million.

 

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