spp, page-54

BCI = Hematite iron ore.

'Pure' Hematite iron ore in element form = Fe2O3

Hematite without any deleterious elements (DE) BY WEIGHT = 69.9% Fe + 30.1% O

Bonnie Fines sinter feed =

At present 1000Kg minus 123Kg (LOI at Outcamp Well~[carbonates and crystal water])= 877Kg (Post sintered)
570Kg (Present exported iron content) divided 877Kg = 65% Cafe (Furance feed of 65% Iron)

Bonnie fines contains 4.9% in DEs.(69.9% minus 65% = 4.9%)
Bonnie fines = 1.9% Alumina (Al2O3) + 3.0% Silica (SiO2)
Asian mill spec = <2.5% Al203, <5.5% Si02, (or Al203 + Si02 <8%), <0.07% P, and <0.1% S.

Bonnie fines in element form (furnace feed):

~65% Iron (Fe)
~5% Alumina, Silica, Phosphorus and Sulphur (DEs).
~30% Oxygen. (O)

Current Asian mill cut-off is 8% for post sintered DEs (99.9% of which is Alumina and Silica). Minimum of 61.9% CaFe for fine ore. Asian mills tap the heavier molten Iron from the bottom of the vat. Whilst the lighter Alumina and Silica remains on the top of the vat. Phosphorus NEVER releases from the Iron, it stays with the Iron. Mills can lower their 61.9% Fe cut-off if they wish. The reason that they prefer not to is because the blast furance is worked harder (and therefore the material feed becomes slower), the lower the Iron content cut-off is set.

The three other main DEs are LOI, Phosphorus and Sulphur.

LOI (Loss on Ignition) = Carbonates or C and CO2 and Crystal water. Needs to be low for lump ore. The higher the better of fine ore to receive an iron content upgrade post sintering. The highest that I'm aware of is Outcamp Well (BCI) with 12.3% LOI. Magnetites = low LOI with very little post sintering (pelletized for magnetites) lift in iron content. Hematites, moderate to high levels of LOI.

Phosphorous ~ BC Iron is one of the lowest, if not the lowest Phosphorus hematite miner in the world. P 0.016% for Bonnie fines (BCI)

Over 0.07% P, and the steel becomes too brittle.

Sulphur ~ Bonnie fines contains an ultra low level of Sulphur. S 0.012% for Bonnie fines (BCI)

Bonnie fines (BCI) are linked to the CFR62 index and not the CFR58 index. CFR62 = Lump ore. CFR58 = Fine ore. Only fine ore producer that I'm aware of that is linked to CFR62. Which in BC Iron CEO, Mike Young's words, "Is remarkable" (Nov 2011 at ASX small/mid Asian conference)

BC Iron has stockpiled over 1Mt of sub 57% Fe blended ore in the last quarter alone.

Why? Read above.

Simple dry screening at Nullagine MAY convert 55% Fe ore into 57% Fe ore.

By definition, 55% Fe ore MAY be sold as DSO because of a LOI of 12.3%, which places the CaFe above the 61.9% CaFe cut-off. Simple dry screening MAY be a far cheaper alternative than the reduction in price by exporting 55% Fe ore as is.

Talk of a possible wet plant MAY indicate that even lower grade ore is amenable.

How much material is amenable at the Nullagine mine for export?

Only 2.75 months to go before we find out.

In Rob we trust :)