cashed up twiggy...nearlogy for fms, page-6

Pelm1,

You say:

"Why would he want a small, low grade, high contaminant ore body???"

Guess where fms is ???

That is right, next to Senenity, same crap ore, except lower quality, higher contaminant.

fms = mined in 2099, when the world runs out of the other stuff

This could be the start of an informative thread. My question to you is Why did FMG spend all the money on drilling Senenity to prove up the resource if it is such low quality and will not be mined until 2099?


Extract from FMG's website:

Since 2006, Fortescue's exploration focus has shifted west. After preliminary assessment of a wide range of areas within Fortescue's landholding, the Solomon area, which is about 70km north of Tom Price, was selected as the next prime area for attention. Following target definition work and after securing all necessary approvals, drill evaluation commenced in June 2007.

Drilling within the Solomon area has shown the presence of significant volumes of the three classic Pilbara iron ore deposit types; Channel Iron Deposits (CID), Bedded Iron Deposits (BID) and Detrital Iron Deposits (DID). Optimisation and expansion plans have recently been strengthened by an upgrade of the total resource estimate 2.2 billion tonnes (56% Fe) in the Solomon Project Area (1 billion tonnes from Serenity, in Solomon West; and 1.2 billion tonnes from Solomon East).

Solomon Inferred Resource Estimate

Serenity Inferred Resource Estimate

Ore Type
Mt
Fe %
SiO2%
Al2O3%
P %
LOI %

Total Tonnes
1,014
56
7.3
3.8
0.081
8.06

Including

Upper CID
337
56.7
6.3
2.9
0.079
9.2



Solomon East Inferred Resource Estimate

Ore Type
Mt
Fe %
SiO2%
Al2O3%
P %
LOI %

Indicated Resources
552
56.4
6.98
2.89
0.059
8.91

Inferred Resources
658
56.3
6.57
3.02
0.079
8.77

Total Tonnes
1210
56.3
6.75
2.96
0.069
8.83

Including

Firetail BID
125
59.5
4.9
2.6
0.119
6.5

Upper CID
421
56.5
6.28
1.98
0.047
10.22



Total resource estimate for all Fortescue project sites = 4.8 billion tonnes of inferred, indicated and measured resources.

The Chichester and Solomon discoveries have been made after exploration of less than 20 per cent of Fortescue's ever-growing tenement portfolio. Since July 2003, total tenement holdings in the Pilbara region have grown from 487km2 to around 71,400km2, spanning an area more than three times larger than those of the nearest competitor. Such a large tenement portfolio provides significant scope for the discovery of yet more resources and reserves in the future

Source: http://www.fmgl.com.au/IRM/content/project_exploration.htm

I have to go. Sorry about the layout I don't have time to fix it. Hope it starts a informative discussion.

Regards

SP