Fortescue Metals Group (ASX: FMG) continues to build on the already very significant resource inventory, which currently stands at 11.42 billion tonnes.
The global boost in total resources is from an additional 980 million tonnes from Nyidinghu, which now exceeds 2 billion tones - and importantly - has an expected life of mine strip ratio of less than 2:1.
The Nyidinghu project is only 35 kilometres south of Fortescue’s existing Cloudbreak operation in the Chichester Hub.
The Nyidinghu resource delivers Fortescue the potential to blend the higher phosphorus bedded Nyidinghu mineralization with its low phosphorus ores from the Chichester Hub to create a valuable product which Fortescue expects will be readily accepted by the market.
Fortescue said continued drilling to increase the resource size and category may ultimately add a further 500 million tonnes to the resource, with an Indicated Resources forecast for the March quarter of 2012.