Rio gets iron-clad deal with Pilbara neighbourEmail Print Normal...

Rio gets iron-clad deal with Pilbara neighbour
Email Print Normal font Large font By Barry Fitzgerald
November 26, 2005

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AdvertisementRIO Tinto has secured the backdoor of its Tom Price iron ore operation in the Pilbara by striking a joint-venture deal with exploration junior AusQuest over its nearby and potentially big Nameless prospect.

The deal put a rocket under AusQuest's share price.

AusQuest shares surged 19.5¢ to 38.5¢, with the 102 per cent gain reflecting the potential for Nameless to become a big producer. Nameless is owned 60 per cent by Rio and 40 per cent by AusQuest, a group populated by former senior CRA/Rio executives.

The deal comes hard on the heels of Rio's embarrassment with its potential loss of the Shovelanna iron ore project to Cazaly Resources, which pegged the tenement after Rio failed to lodge the required paperwork on time.

AusQuest's deal with Rio covers the big pisolitic iron ore target identified earlier this year at its Nameless prospect, located 5 kilometres from Rio's ageing Tom Price mining centre. Under the letter of intent between the two, there will be an initial work program to determine whether Nameless does have big-time potential.

"The arrangement envisaged with Rio should provide a realistic opportunity to advance the Nameless project towards possible development in the foreseeable future, provided results from the initial test program are sufficiently encouraging," AusQuest said.