rio comments, page-19

Hi UIO,

No you haven't upset me - sorry if my email gave you that impression. I like to hear everyone's views and you certainly seem to be knowledgeable. Chances are you're probably a lot more cautious than I am in investing in iron ore companies.

BC Iron has a memorandum of understanding with FMG for ore haulage and minegate sales etc. I'll post the information from BC Iron's website. Interestingly, they have lower or similar grade Fe to BRM, but do indicate low contaminants. They too also say that they have low grade ore that they're looking at benefication to get it to DSO grade. BC Iron info below.

BC Iron Limited was formed to explore for and develop the channel iron deposits within its Nullagine Project located in the Pilbara region of Western Australia. It lies immediately north of Fortescue Metals Group Limited’s (“Fortescue”) Chichester Project comprising the Cloud Break, and Christmas Creek deposits. Fortescue are currently constructing a major port facility at Port Hedland and as well as rail haulage from Cloud Break and first ore on ship is scheduled for May 2008. Since listing successfully on the ASX in December 2006, BC Iron Limited has:
Sustained strong support for its share price,
Commenced exploration drilling on the Channel Iron Deposits (CID),
Discovered several zones comprising high grade CID ore with low contaminants suitable for direct shipping,
Completed JV obligations to earn-in 100 % of the Project,
Signed an MoU with Fortescue covering future options such as provision of bulk commodity transport services, mine gate sales and joint venture arrangements,
Commenced a Scoping Study over the "Bonnie Creek CID Project", and
Successfully raised $9M through a placement of 5.4M shares at $1.70
Exploration is initially being carried out on a broad scale aimed at identifying areas which have the potential to produce direct shipping quality iron ore (“DSO”) product. To date, exploration targets of up to 30 Mt grading 55% to 58% Fe have been identified by drilling, mapping, and rock chip sampling. Furthermore, several areas have been identified which contain lower grade material which may be amenable to selective mining or simple beneficiation to produce additional sources of DSO.