23/04/2010 - 09:53

BC Iron up on Nullagine lease news

23/04/2010 - 09:53

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Shares in iron ore hopeful BC Iron have surged five per cent in morning trade after the company was formally granted a mining lease for its Nullagine project.

BC Iron up on Nullagine lease news

Shares in iron ore hopeful BC Iron have surged five per cent in morning trade after the company announced it was formally granted a mining lease for its Nullagine project.

The company said the lease clears the way for the WA Department of Mines and Petroleum to complete its review and approve the company's mining proposal.

The Nullagine project is a 50/50 joint venture with Fortescue Metals Group.

BC said it remained on track to begin mining later this year and ship its first ore in December while the company is targeting production of three million tonnes per annum.

"The development of the Nullagine Iron Ore Joint Venture is progressing well, with major contracts already awarded, including the recent award of key haul road construction and mining, crushing and screening contracts, and the recent signing of a key Native Title Mining Agreement with the Traditional Owners at Nullagine," the company said in a statement.

BC Iron shares were up 9.5 cents, or five per cent, to $1.995 per share at AEST1149.

 

Announcement below:

 

BC IRON POISED FOR PRODUCTION FOLLOWING GRANT OF MINING LEASE FOR NULLAGINE PROJECT

- CLEARS THE WAY FOR REVIEW AND APPROVAL OF MINING PROPOSAL

Australian iron ore company BC Iron Limited (ASX: BCI); ("BC Iron") is pleased to advise that the Mining Lease for its Nullagine Iron Ore Joint Venture (BC Iron 50% / FMG 50%) in Western Australia's East Pilbara has been formally granted by the West Australian Department of Mines and Petroleum (DMP).

The grant of the Mining Lease is another key milestone for BC Iron and clears the way for the DMP to complete its review and approve BC Iron's submitted mining proposal.

BC Iron will commence mining at Nullagine later this year, and remains on track for its stated targets of:
- First ore on ship during December 2010; and
- A production rate of 3Mtpa and the shipment of 1 Million tonnes by 30 June 2011.

Mining Lease, M46/515-I and General Purpose Lease, G46/9 (refer Map below) were granted to BC Iron on 22 April 2010 and cover the Mine Operations Centre, including the mining areas, crushing and treatment facilities, associated infrastructure, and the accommodation and camp services.

The proposed haulage route has been permitted to the public Hillside road, allowing direct access to the mining tenement enabling the Company to begin preparation work and construction of the northern section of the private haul road. Tenements for the southern section of the haul road are progressing through the DMP.

The development of the Nullagine Iron Ore Joint Venture is progressing well, with major contracts already awarded, including the recent award of key haul road construction and mining, crushing and screening contracts, and the recent signing of a key Native Title Mining Agreement with the Traditional Owners at Nullagine.

BC Iron Managing Director, Mike Young, said the grant of the Mining Lease was another major milestone for the Company on its pathway to mining and production and its first iron ore exports later this year.

"The grant of the Mining Lease marks a critical milestone for any emerging mining project and we are delighted to have achieved this key statutory approval in a timely fashion," he said.

"Coming hard on the heels of the recent Native Title and Pastoralist agreements and the award of the key Project contracts, it's now full steam ahead for the Nullagine Project as we move into the main construction and then production phase."

Mr Young said that BC Iron had taken nothing for granted in terms of project development: "We have been meticulous in our planning and have left nothing to chance," he said. "We're seeing the benefits of this with a steady stream of approvals and agreements coming through well ahead of planned production."

"This should provide all stakeholders, including the Company's shareholders, with good a degree of comfort that the commencement of production will be achieved within stated timeframes," added Mr Young.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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