Following several months of negotiation, Western Australian company BC Iron has secured a deal with Clive Palmer’s Mineralogy to purchase two groups of tenements in the west Pilbara region for $9 million plus two ongoing royalties.
BC Iron hopes that the tenements could boost production for its coveted Buckland Project, a strategic mine-to-port haul road iron ore development that runs from a mine in Bungaroo South to a port at Cape Preston.
The relatively young company, established in 2006, will gain over 600 square kilometres of ground in the Pilbara region as a result of the deal.
“[The area] is completely under-explored and some areas are entirely unexplored on close to 600 square kilometres of ground in the middle of the Hamersley Basin,” said BC Iron managing director Alwyn Vorster.
Vorster also expressed his hope that the area could be prospective not just for iron ore, but other minerals, including diamonds.