Fortescue Metals (ASX:FMG) Posted 1.23B Tons Maiden Resource for JV with Baosteel

Melbourne, July 29, 2009 AEST (ABN Newswire) - Fortescue Metals Group Ltd. (ASX:FMG) today announced a maiden resource estimate of 1.23 billion tonnes of magnetite iron ore for its Glacier Valley tenement area. Glacier Valley is held by Fortescue but is subject to a joint venture arrangement with an Australian subsidiary of China's Baosteel Group Corporation.

Fortescue said the Glacier Valley material shows the characteristics of a quality magnetite deposit, with the material having a grade of 33%, which can be processed to a grade of about 67% based on a recovery rate of 29%.

Baosteel can earn a 35% stake in the Glacier Valley tenements by contributing to exploration expenditure and raise this to 50% by contributing to a feasibility study.

The tenement is about 100 kilometers south of its Herb Elliott port at Port Hedland and 25 kilometers east of its existing railway line.

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Michelle Liang Asia Business News Asia Bureau Tel: +61-2-9247-4344 Email: michelle.liang@abnnewswire.net