ioh agree minegate sales with rio

very very interesting, the landscape may be changing for the IO juniors.

Iron Ore Holdings (IOH) is pleased to advise that it has entered into an arrangement
with Rio Tinto for an annual mine gate sale of up to 1.5 million tonnes of iron ore from
a new mine to be developed at Phil’s Creek, north west of Newman.
The Phil’s Creek deposit comprises 8.3 million tonnes of Indicated Mineral
Resources grading 58.1%Fe, reported in accordance with the 2004 JORC code.
The pisolite ore deposit is situated only five kilometres from Rio Tinto’s Yandicoogina
mine.
IOH will complete a definitive engineering study by February 2009. Mining is
anticipated to commence at Phil’s Creek by the second half of 2010 subject to
negotiation of a formal ore sales agreement with Rio Tinto.
Managing Director of IOH Matt Rimes said: “This is a great outcome for IOH, firstly to
resolve how we can competitively begin to mine this small deposit and secondly to
partner with industry leader Rio Tinto. The commercial arrangements substantiate
our estimates of the net present value of the Phil’s Creek project at approximately
$70million.”
Following the confirmation of the feasibility of developing the Phil’s Creek deposit, the
mine would be owned and operated by IOH, and Rio Tinto would purchase the
supplied ore and blend it for sale to its customers. IOH would deliver the ore to
Yandicoogina stockyard where Rio Tinto would assume ownership and
accommodate it on its integrated rail and port system.