Schuey, is there any possibility, in your opinion, that FMGs new high grade deposit might extend into Marillana?
Dee Trader, there's a misconception that FMG's new found deposit abuts Marillana. It actually doesn't, it looks to be about 30 km away, so on this basis, it's unlikely the ore body extends into Marillana.
This new FMG deposit abuts the southern end of their other tenement, which does abut Marillana. I believe that the FMG tenement that sits between Marillana and the new disocovery is Mindy Mindy, however, I may be wrong.
Mindy Mindy has a small defined resource and therefore didn't warrant FMG extending their railway to access it. However, as the BHP railway runs through it, FMG tried to get third party access to it and hence launched legal action. I've previously stated on numerous occasions that I believed FMG saw benefit in having BRM as a partner to build a railway from Marillana to Christmas Creek because it would have provided a railway to Mindy Mindy. The economics of FMG building a railway through Mindy Mindy to its new found deposit is probably now viable but it's better for them if the railway is built by someone else in return for some rail access on the wider FMG railway network, which is consistent with FMG's commitment to provide iron ore juniors with third party access to its railways.
BRM Price at posting:
$5.49 Sentiment: None Disclosure: Held
