BC Iron (OTC:BIRNF) seems to have received a bulk discount on the dissemination of its press releases, as the company has once again put out a release with an update on the resources at the Nullagine project, which is a 75/25 joint venture with Fortescue Metals (OTCQX:FSUMF). As of June 2014, the total resource and reserve estimate stands at 35.4 million wet metric tonnes, at an average grade of 56.5% Fe. This should be sufficient for 5.5 years of operation, based on the current expected output of 6 million wet metric tonnes per year.
The limited mine life doesn't come as a surprise, as it's generally known that the Nullagine Joint Venture didn't really have a lot of possibilities to expand the resources. A remaining mine life of 5.5 years (including the inferred resources) is a bit better than I was hoping for, so this update definitely doesn't make me unhappy. However, I will be looking forward to see an update on how BC Iron expects to treat the clay ore which is currently being stockpiled, as processing the sticky ore could be quite tricky.
BC Iron has five more years to go at Nullagine, and by that time, I hope (and think) it will have started commercial production at one of the assets it will acquire with the buyout of Iron Ore Holdings (OTC:IRNHF). The pipeline will be filled, and until another project starts to produce iron ore, the Nullagine project will continue to be a steady and reliable production asset for BC Iron.
Disclosure: The author is long BIRNF, FSUMF, IRNHF.
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