bci and fmg, page-6

Gidday Tils and Pat,

BCI management has been awfully quite for some time now. Infact apart from the quarterly - which didn't really say anything that we didn't already know there's been no news from BCI management at all, during the second half of December and nothing in January.

In regards to a BCI/FMG take-over. Sorry Tils, I still think it'll be a merger. But that aside, we all agree that a combined BCI/FMG makes absolute sense. It makes so much sense for both sides that I can't understand why the two companies haven't done it already. Must be due to approvals as suggested or something simular.

Considering that FMG will most probably dilute it's own number of shares to obtain BCI, it won't cost FMG much either in the way of cash. As long as FMG can justify it's actions with it's shareholders. FMG shareholders may say that when you look at what's on offer at the Solomon mine there's no reason for FMG to take little BCI. But Solomon won't be up and running for ages. FMG critically needs to lift it's short to medium term production. Anyone who says that BCI is "small fry" needs to have a look at a few detailed maps of the tenements as well. ( W.A mines dept.)

The Christmas Creek rail extention was bought forward for two reasons, to service FMG's Christmas Creek mine and the NJV. Most, probably see the NJV as just a side issue for FMG and that the rail extention was mostly to service Christmas Creek. After all, the NJV has presently only 91Mt of CID whilst Christmas Creek has around 800 Mt of CID. Which in itself is unfair, if someone used those figures to compare BCI to FMG, since FMG will only be able to turn that 800Mt of CID into around 200Mt of DSO. Where BCI could turn most of it's CID into DSO. But interestingly enough, Christmas Creek has only slighty more channels of IO then Nullagine. Have a look at a detailed map if you don't believe me, available from the Western Australia mines dept. BCI has over 90Km of rich IO veins amoungst the NJV. The ONLY reason why the indicated CID is 91Mt is due to the lack of money and time to drill the NJV deposit. Alkane resources the orginal partner with Consmin. in BCI, said that Bonnie creek alone contains 400Mt of CID if the IO has an average thinkness of 10mt. So far drilling results has shown an average thickness of 9.8mt. If BCI continues to discover IO at this thickness there is 380Mt at Bonnie Creek alone. Which is 1 of 3 IO channels in the NJV. BCI infact wanted to start drilling at Shaw River, because BCI thought it was that channel that offered the most potential. But a cyclone which had just passed made BCI start drilling at Bonnie Creek.

That is the number one reason why for me that FMG won't settle for being a JV partner. They know how much CID is on the BCI tenements. They look at maps. They also need short to medium term supply, they won't get that from Solomon for some time. And for me, the rail extention was bought forward just as importantly, to service the NJV, as it was for Christmas Creek.