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Market:	ASX
Sector:	General Mining
EPIC:	BRM
Latest Price:	2.14 (-1.38% )
52-week High:	6.10
52-week Low:	1.60
Market Cap:	309.88M

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Brockman Resources

Brockman Resources (ASX: BRM) is an ASX 300 listed company. Its principal project, the Marillana Iron Ore Project, is located 100km north-west of Newman in the Pilbara region of Western Australia and is close to existing rail, road and port infrastructure.

Brockman Resources one billion tonne maiden hematite Ore Reserve at Marillana

Thursday, September 09, 2010

Brockman Resources (ASX: BRM) has announced its maiden hematite Ore Reserve estimate of 1.0 billion tonnes at 42.4% iron (Fe), from the 100% owned Marillana Iron Ore Project in the Pilbara region of Western Australia.

As part of a Marillana Definitive Feasibility Study by Golder Associates of Perth, detrital Ore Reserves (proven and probable) in excess of one billion tonnes are confirmed, with 868Mt of Reserve in the probable category and over 133Mt of Reserve in the proven category.

An additional Channel Iron Deposit (CID) probable Ore Reserve of greater than 48Mt has also been defined.

Wayne Richards, managing director of Brockman said that based on extensive beneficiation testwork, the detrital Ore is expected to produce 378Mt of final product grading 60.5–61.5% Fe with impurity levels comparable with other West Australian direct shipping hematite ore iron ore producers.

In total, when blended with the CID Ore, the Marillana project is estimated to produce over 425mt of final Direct Shipping Ore product. At current prices, the ore would have revenues of over $50 billion when developed.

The reserve is reflective of a continuous mineralisation, and supports a long-term mine life of up to 25 years, at a nominal production rate of 17-20Mtpa. Interestingly, the final pit design used very conservative overall pit slope angles of 16–37 degrees and produced a waste to ore stripping ratio of only 0.87:1, which is almost half of the 1.4:1 stripping ratio used in the Pre-Feasibility Study.

In terms of ore reserve, it would rank Brockman's Marillana Project as the fourth largest published hematite Reserve in the Pilbara, behind BHP Billiton (ASX: BHP), Rio Tinto (ASX: RIO) and Fortescue Metals (ASX: FMG).

Richards said, the detrital Ore can be upgraded to a high quality, efficiently sintered product via simple beneficiation, which is supported by low-cost mining, low ore:waste stripping ratios, large continuous ore zones and simple processing.

He said, "the simplicity of the Marillana Project means that the expected cost of mining and processing (final product loaded on trains) will be very compatible, if not lower than most of the newly commissioned mines in the Pilbara."

The majority of work on the DFS has now been completed, the final results of the DFS will be released this month.

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