gondwana and bci and fmg iron ore

Good news for Gondwana's remote Eastern Pilbara iron ore tenements with the neighbours to the south, BCI, announcing today a JV with Fortescue for a 50/50 partnership in the high grade iron ore (DSO), hematite. BCI up 26.5c and 42% and FMG up 51c or 18% on the news.
See my previous posts on GDA and BCI comparisons. Obviously BCI is much more advanced but at one stage they were in the similar stage of exploration as GDA.
Interesting that they also included in the announcement, they are looking to expnad with other JV's which makes a lot of sense and could be a company maker for GDA down the track. GDA has some excellent tenements with recent rock chip smaples showing very high grade ore with comparisons able to be seen in the BCI reports.

An excerpt from the news today....

"The agreement ensures that, subject to completion of the feasibility study and
securing all relevant statutory approvals, BC Iron could commence production at
Nullagine in early 2010.
The feasibility study is due to be completed at the end of this month and is based on
an initial annualised production rate of 1.5 million tonnes. Output is expected to rise
to a minimum of 3 million tonnes per annum (Mtpa) once the dedicated heavy haul
road between the Nullagine mine site and the Chichester Operations is built and
commissioned. When TPI’s rail is extended to Christmas Creek and port capacity is
increased, Nullagine’s production could be increased to 5 Mtpa.
The Nullagine Project’s resource comprises a high-quality, Direct Shipping Ore of
51Mt grading 57% Fe (65% calcined Fe) with ultra-low phosphorous. Preliminary
results from the feasibility study suggest Nullagine will be an exceptionally robust
project, with forecast average operating costs over the life of mine of between A$40
to A$45 a tonne Free on Board (FOB). Capital development costs are approximately
A$35 to A$50 million, depending on timing of production; payback of capital is
expected to take less than two years from the start of production.
The Nullagine joint venture will benefit significantly from synergies arising from the
proximity to FMG’s operations, including access to existing infrastructure, systems
and facilities such as the David Forrest airstrip, which will expedite the logistics of the
new mine development.
The JV will also consider other opportunities for CID deposits in the Pilbara.
“The Joint Venture and the Rail Haulage and Port Services agreements overcome
the critical infrastructure barriers to iron ore production,” BC Iron managing director
Mike Young said. “This is a great outcome for both BC Iron and FMG, a fantastic
result for our shareholders and an import"....