Brockman Resources (ASX:BRM)
ASX Announcement 24th August 2010
BROCKMAN REPORTS POSITIVE RESULTS FROM KEY METALLURGICAL SINTER TESTWORK PROGRAM
CONFIRMS VIABILITY AND MARKETABILITY OF MARILLANA PRODUCT
4 Recently completed testwork confirms the excellent sintering qualities of Marillana ore
4 Sintering tests confirm Marillana ore contributes to positive performance enhancement of the blended ore during sintering and can be used at high blending ratios (Marillana Ore : Other Australian Ores)
4 Testwork confirms Marillana ore can replace high quality Australian blends in mills around Asia, with very comparable iron unit production at equivalent fuel usage rates
4 Results reinforce the marketability of the Marillana ore and the high metallurgical quality of both the feed and sintered ore
4 Value-in-use modelling to be completed as part of a detailed marketing program once specific off-take agreements with preferred customers have been finalised
4 Marillana Definitive Feasibility Study on track for completion this Quarter
Brockman Resources Limited (ASX: BRM ? ?Brockman? or ?the Company?) is pleased to advise that it has received final results from the recently completed metallurgical sinter testwork program undertaken on representative ore samples from its flagship Marillana Iron Ore Project (?Marillana Project?) in the Pilbara region of Western Australia.
The sinter testwork program follows the successful definitive metallurgical testwork undertaken earlier this year which confirmed the ability to upgrade the large tonnage of detrital iron ore mineralisation at the Marillana Project to a final quality product iron grade range from 60.5 - 63.5 % Fe.
Sintering is the process whereby an iron ore fines product (<6.3mm), such as that to be produced at Marillana Project, is agglomerated at high temperature to produce a porous lumpy product suitable for use in a blast furnace. Sintered lump is the predominant source of feed used in blast furnaces. The blast furnaces are an integral part of the steel making process.
Optimal physical properties of the sinter are required for use in the blast furnace, with favourable sintering characteristics and low contaminants generally translating into a high Value-in-Use (?ViU?) for the ore.
The recently completed sinter testwork confirms the iron ore produced from the Marillana Project can be successfully sintered in a typical Asian sinter blend, into a premium lumpy product, with similar performance characteristics to those ores exported from BHP Billiton?s and Rio Tinto?s Pilbara iron ore operations.
The results also confirm that the product sinter containing the Marillana Project ore has low levels of impurities and will meet the specifications of the major Chinese steel mills at high blending ratios.
Sinter Testwork Results
As part of its Definitive Feasibility Study (?DFS?), Brockman requested that the CSIRO evaluate the granulating and sintering characteristics of beneficiated detrital iron ore fines product generated from a representative sample of Marillana detrital ore during pilot plant trials.
The granulating and sintering characteristics of the Marillana detrital fines sample was determined in a simulated Chinese coastal sinter blend consisting of 30% Brazilian ore, 60% Australian ore and 10% magnetite concentrate (base blend). Marillana fines were blended at levels of 15% and 30% in substitution for composite Australian fines in the base blend. The composite Australian fines were representative of ore marketed by BHP Billiton and Rio Tinto Iron Ore.
The granulation testwork indicated that as the blending ratio of Marillana detrital fines increased, the optimum mix moisture content required for efficient granulation decreased slightly and that there were no significant changes in permeability as the proportion of Marillana detrital fines was increased up to 30% in the blend. This result confirms the potential for a high ViU outcome for the sintering process and blast furnace. All blends containing Marillana detrital fines produced a sinter product displaying qualities well above the minimum sinter quality required for blast furnaces, as measured by the standard sinter test indices TI, RDI and RI.
The sinter from the blends containing Marillana detrital fines showed a slightly coarser mean sinter size than the base blend. Additionally, substitution of Marillana detrital fines for the Australian composite fines did not affect the fuel requirement for sintering and improved the sintering productivity. Both of these outcomes will result in a more efficient sintering process and increased steel production within the blast furnaces.
The sinter testwork also indicated that the alumina (?Al2O3?) present in the Marillana detrital fines was present in the coarse size fractions, and as such, is less likely to report to the sinter melt. Consequently, the Al2O3 partitioning in the Marillana detrital fines assisted in mitigating the adverse impact that Al2O3 typically has on sinter quality and performance. These characteristics are a desirable result for an efficient sintering process.
The above outcomes for the Marillana detrital fines will result in an efficient sintering process and improved blast furnace productivity.
Marketing of Marillana Ore
Brockman?s Managing Director, Mr Wayne Richards, said the sinter testwork results were a very positive result for the Marillana Project, further enhancing the positive metallurgical testwork that was completed earlier in the year and providing strong momentum for the marketability and pricing of the ore.
?These results confirm that Marillana Project ore will produce a premium sintered product that meets the blast furnace specifications of the major Chinese steel mills,? Mr Richards said. ?It provides further support for our view that the Marillana Project offers an outstanding iron ore resource that will underpin a very significant long-term mining operation.?
The positive results of the sintering tests also confirm that the ore has the capability to be a cornerstone blending ore for the steel mills, and can be utilised at high blending ratios - thereby reducing the number and type of ores the mills need to procure to ensure the most efficient performance of their blast furnaces.
The strong marketability and technical acceptance of Marillana Project ore was demonstrated earlier in the year with the Company?s execution in April 2010 of a landmark Memorandum of Understanding for the purchase of up to 50% of future production from the Marillana Project with China?s largest iron ore importer Sinosteel Australia Pty Ltd.
Definitive Feasibility Study Update
The majority of work on the DFS has now been completed, with Brockman on-track to release the final results of the DFS next month.
Process design and engineering of the preferred process route has been completed and pricing of major equipment packages has been factored into the capital cost estimates. Financial modelling based on the DFS Capex and Opex estimates has commenced to determine the financial parameters of the optimal project delivery strategies.
The pit optimisation, open pit design and definitive mining schedule are being optimised for the DFS, with the definitive mining studies estimating the Marillana Project ore reserves to be in excess of one billion tonnes.
Wayne Richards
Managing Director
?ENDS?
|
Released by:
Nicholas Read
Read Corporate
Phone: +61 8 9388 1474 |
On behalf of:
Wayne Richards
Managing Director
Brockman Resources Limited
Phone: +61 8 9389 3000 |
About Brockman Resources
Brockman is an ASX300 listed Company with its principal project, the Marillana Iron Ore Project, located 100km north-west of Newman in the Pilbara region of Western Australia and lying close to existing rail, road and port infrastructure. The Marillana Project will be one of the most significant ?junior? iron ore (hematite) projects within Australia.
Brockman has built a portfolio of additional iron ore tenements throughout the Pilbara (predominantly the West Pilbara) to develop a pipeline of future projects and expansions, thereby creating future value enhancement to the Company?s shareholders.
The Company is a founding member of the North West Iron Ore Alliance, which is completing studies into the development of two inner harbour berths and associated material handling infrastructure at Port Hedland to accommodate the Alliance?s 50 million tonne per annum export capacity allocation.
The Marillana Project is scheduled to commence production in late 2013 at a nominal rate of 17-20 million tonnes per annum.
brockman.com.au
References to Marillana Pit Tonnages and Production Targets
Brockman has not yet reported any Ore Reserves from its Marillana Project. While the Company remains optimistic it will report reserves in the future, any discussion in relation to Ore Reserves and production targets is only conceptual in nature as there has been insufficient work to define an Ore Reserve until completion of the Definitive Feasibility Study. Figures presented in this report relate to optimised pit shells only and it is expected that final pit design will result in changes, albeit minor, compared to those reported herein.
Competent Person?s Statement
The information in this report that relates to Mineral Resources is based on information compiled by Mr J Farrell and Mr A Zhang.
Mr J Farrell, who is a Member of the Australasian Institute of Mining and Metallurgy and a full-time employee of Golder Associates Pty Ltd, produced the Mineral Resource estimates based on the data and geological interpretations provided by Brockman. Mr Farrell has sufficient experience that is relevant to the style of mineralisation, type of deposit under consideration and to the activity that he is undertaking to qualify as a Competent Person as defined in the 2004 edition of the ?Australasian Code for Reporting of Exploration, Results, Mineral Resource and Ore Reserves?. Mr Farrell consents to the inclusion in this report of the matters based on his information in the form and context that the information appears.
Mr A Zhang, who is a Member of the Australasian Institute of Mining and Metallurgy and a full-time employee of Brockman Resources Limited, provided the geological interpretations and the drill hole data used for the Mineral Resource estimation. Mr Zhang has sufficient experience that is relevant to the style of mineralisation, type of deposit under consideration and to the activity that he is undertaking to qualify as a Competent Person as defined in the 2004 edition of the ?Australasian Code for Reporting of Exploration, Results, Mineral Resource and Ore Reserves?. Mr Zhang consents to the inclusion in this report of the matters based on his information in the form and context that the information appears.
READ CORPORATE
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