Buckland Project, page-2

Given the significant fall in the Iron Ore price over the last 2.5 years, and the fleeing of investors from the commodity (in general), the current economic environment presents obvious challenging times for a small company looking to bring on a new mine. So in difficult times good managers consider ALL available options for any project.

And in this regard BCI is lucky in that they have BOTH API and Rio Tinto right next door to the Buckland Project.

A summary of BCI’s ‘neighbours’ at Buckland follows.

Rio Tinto – The Bungaroo South/Dragon deposits of the Buckland Project are approx. 80klms as the crow flies from Rio’s Mesa J mine near Panawonica in the Western Pilbara. I have been unable to establish as to whether Rio have explored at the adjoining land to the Bungaroo South/Dragon deposits. Therefore, Rio is noted only for their ‘location’ and/or ‘nearology’. However, a relatively close, large, existing, operating mine with first class rail connections to ports (Dampier & Cape Lambert) should not be discounted.

API Management Pty Ltd (API) is the manager for the West Pilbara Iron Ore Project (WPIOP), which is now the largest independently owned, undeveloped direct shipping iron ore project in Australia. API’s website can be found at – http://apijv.com.au/ - and it also contains an excellent video which outlines the scale and extent of the project. There is also a helpful Factsheet on their website which provides an overview and summary of the important aspects and numbers. The website also contains a map and resource statement.

It is important to understand all of the players in this substantial project, of which BCI is (imo) looking to be a part of.

The major owners of the WPIOP are – Baosteel, AMCI, POSCO & Aurizon, with Aquila being the JV partner of Baosteel and Aurizon. API are the appointed managers and also have separate JV’s with both ASX listed Red Hill Iron (RHI) and Cullen Resources (CUL).

As you can see, with the project being backed by two of the top five steelmakers globally in Baosteel and POSCO, BCI will be dealing with some big boys…..

The Aquila website (http://www.aquilaresources.com.au/projects/west-pilbara-iron-ore-project) also provides some interesting research material on the WPIOP. I find it very interesting that BOTH API and Aquila specifically mentions Buckland Hills on their respective website maps, as being part of the WPIOP. However, this is more likely to be by virtue of the fact that API owns the deposits directly to the south of BCI’s Bungaroo South deposits (Buckland Project).

The Aquila website also provides the most up-to-date status report of the WPIOP as follows –

“Due largely to the prevailing iron ore market conditions, the project participants have decided to defer the previously targeted completion of a DFS by mid-2016, however, key project approvals and areas of potential value enhancement will continue to be pursued.”

Regardless of the current status of the WPIOP, it is clear that BCI and API have been in discussions about collaborating on a joint mine plan for the combined BCI and API Bungaroo South deposits. The BCI website quotes the following -
“The Bungaroo South deposit is contiguous with the API Joint Venture’s Buckland Hills deposit. The parties have completed a joint study which confirmed the deposits can be mined in a co-operative manner, with increased mineable inventory available to both parties.

BC Iron is in preliminary discussions with a number of potential partners for the Buckland Project on a range of concepts, including funding solutions, operating solutions, joint ventures and the provision of third party infrastructure services.”

Therefore, of the two ‘neighbours’ to BCI’s Bungaroo/Dragon deposits (Buckland), it would appear logical that BCI will at least initially collaborate with API to jointly develop the Buckland Hills contiguous deposits.