The 59mt crystaline resource which is after the DSO taken out leaves about 17mt Fe. They have not included Ultima dam west as it was not JORC compliant due to hole spacing. This alone can have 30mt for starters.
Independent consultants have a target of the crystalline magnetite of 600mt. Even if it ends up being 400mt @ 25%fe then we have a resource of 80 to 100mt fe approx.
Anyway the wet beneficiation process and the extra gravity circuit needed will cost another $100mill, not one billion in capital costs. Please refer to slides of the Brisbane Oct 2011 convention.
AT 4 mtpa we could ignore Hercules (which is the BIF you refer to)and have a mine for at least 20years. At $50 a tonne $200mill a year is not bad profit on $100mill extra capital.
TRF Price at posting:
40.0¢ Sentiment: LT Buy Disclosure: Held
