Excellent results at Nullagine iron ore project

BC Iron Ltd has received excellent results from the current resource in-fill drilling....

  BC Iron Ltd has received excellent results from the current resource in-fill drilling program at Outcamp Well, part of its 100%-owned Nullagine Iron Ore Project in Western Australia’s Pilbara region.The program of Reverse Circulation (RC) in-fill drilling has confirmed the results of wider-spaced drilling conducted earlier this year at Outcamp Well as part of BC Iron’s maiden drilling program.The results received to date include significant widths of high-grade iron ore mineralisation with calcined iron grades of up to 66.1%, confirming the continuity of the mineralisation at Outcamp. The results confirm the potential for Outcamp Well to provide a source of Direct Shipping Ore (DSO) with low contaminants and high calcined iron grades from at or near surface.Drilling conducted by BC Iron this year has already discovered several Channel Iron Deposits (CIDs) with the potential to produce DSO within the Bonnie Creek, Nullagine River and Shaw River palaeochannel systems.Outcamp Well is one of two priority targets within the Bonnie Creek palaeochannel system at the Nullagine Project, which is located close to Fortescue Metals Group’s Cloud Break and Christmas Creek operations, where initial iron ore production is scheduled to commence in May 2008.The Outcamp Well prospect is approximately 3.5km in length with an average width of over 300m and the mineralisation occurs at, or near, surface.BC Iron has established an Exploration Target1 for Outcamp Well of 15-20Mt at 56-58% iron as part of its broader exploration and development strategy at the Nullagine Project. The company has established an Exploration Target for the Coongan Prospect, located approximately 12km to the south-west of Outcamp, of 8-10Mt at 56-58% iron.RC drilling recommenced at the Nullagine Project during September. In-fill drilling at Outcamp and Coongan Well Prospects is expected to provide the data required for an Inferred Resource estimate.Analytical results have now been received from 18 of a total of 25 holes drilled at Outcamp. The results closely reflect the previous drill results. A program of diamond drilling to twin selected RC holes is also currently underway. Diamond drilling will also assess the potential of mesas within the Shaw River system which are difficult to access with a conventional rig.Results are pending for the remaining areas. Delays at the analytical laboratory have resulted in the expected turnaround times for assay results to be on the order of 6-8 weeks.The company remains on track to deliver an Inferred Mineral Resource during the March Quarter of 2008.