fmg states no jv with fdl on new model

Fortescue executive director Graeme Rowley said the iron ore developer already has
joint venture agreements with Flinders in the Pilbara, and the license that contains the
target announced Thursday has been the subject of discussions in the past.
"It is a piece of ground that they asked us to JV in, but we have not reached any
agreement with them as yet and that is not imminent either," he said.
Flinders hasn't done any drilling to back up the estimated size of its target,
which is based on the assessment of a geologist who is familiar with the region.
Wills said that although the estimate is based on the best available local experience,
there has been insufficient work carried out to estimate a mineral resource.
"It is also therefore uncertain whether further exploration will result in a
larger, smaller or any mineral resource," he said.
Wills said the company believed it could prove up a resource at a cost of about A$2
million with a two-month reconnaissance drilling campaign to identify targets followed by
a second two-month phase of infill drilling.
Analysts said there was a good chance Flinders tenements would contain iron ore but
that there was a lot of work to do before the company could realistically start talking
about how much it had in the ground.