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Fortescue endorses BC Iron feasibility study

http://www.businessspectator.com.au/bs.nsf/Article/Fortescue-endorses-BC-Iron-feasibility-study-pd20090720-U4UQL?OpenDocument

Iron ore company BC Iron Ltd has received in-principle endorsement from Fortescue Metals Group Ltd for the feasibility study on its Nullagine iron ore project in Western Australia's Pilbara region, in which the major miner has a 50 per cent interest.

While a formal decision on the proposed joint venture was originally flagged for 14 days after the study was completed, BC Iron said a decision would now be made following a bulk sample test pit.

Mining of the test pit, which has been fast-tracked, is expected to be completed by the end of September, with the ore to be used for initial commissioning of the project once operations commence in the first half of 2010.

In a statement to the Australian Securities Exchange (ASX), BC Iron said it had obtained permission for the test pit from the Palyku Native Title Claim Group, with key state mining approvals for the excess tonnage expected within the next two to four weeks.

The company said senior executives would be travelling to China next week to commence negotiations for long-term iron ore sales contracts