BC Iron has put a $43 million price tag on its Pilbara iron ore ambitions and expects to produce first ore in the second quarter of 2010.
The Mike Young-headed junior gave its Nullagine project the formal go-ahead this morning after the board endorsed its feasibility study.
Joint venture partner Fortescue Metals Group will now review the feasibility study for final approval.
Nullagine has a mine life of 8 years, with estimated operating costs of $43 a tonne.
BC hopes to start mining at an initial rate of 1.5 million tonnes a year, before ramping up to 3Mtpa by the fourth quarter of 2010.
The company has set a longer-term production target of 5Mtpa, which is conditional upon the completion of the planned Fortescue rail extension to Christmas Creek and increased port capacity at Port Hedland.
BC formalised an infrastructure deal with Fortescue last month that will effectively give the miner half of Nullagine in return for cash and access to crucial rail and port infrastructure.
Shares in BC were 3ยข lower to $1.03 at 8.30am Perth time amid a wider market sell-off.
KATE EMERY
