28/02/2011 - 10:36

Fortescue up on new iron ore discovery

28/02/2011 - 10:36

Bookmark

Save articles for future reference.

Shares in Fortescue Metals Group have risen after it announced a 1 billion tonne discovery of iron ore in the Pilbara.

Shares in Fortescue Metals Group have risen after it announced a 1 billion tonne discovery of iron ore in the Pilbara.

Fortescue announced late on Friday afternoon that it had found the ore 35 kilometres south of its Cloudbreak operation on the edge of the Hamersley Ranges.

At 10:00AM (WST) today, Fortescue shares had gained 2.1 per cent, trading at $6.64.

The addition of the new deposit, named Nyidinghu, takes Fortescue's total resource portfolio to almost 7 billion tonnes of hematite-geothite ore, and an additional 2.5Bt of magnetite mineralisation.

Fortescue said the discovery gave it a number of strategic opportunities.

"These opportunities include the ability to significantly increase Fortescue's total production and to mix Nyidinghu's higher phosphorus ore with the lower phosphorus ore," the company said in a statement to the ASX.

"Such low phosphorus blend ore is very valuable in the Pilbara and is typical of Fortescue's multi-billion tonne Chichester discovery that hosts the major Cloudbreak and Christmas Creek mines."

Fortescue said the proximity to its Cloudbreak operations had led it to commence a feasibility study for Nyidinghu to develop it as rapidly as possible.

"Fortescue's proven front end development team is already working on options for maximising the value of this major new discovery in conjunction with company's existing mines and infrastructure," the company said.

 

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

Subscription Options