Brockman Resources Limited

Published : January 20th, 2009

Confirms New Discovery of DSO Iron Ore at Abalone - Marillana Project

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Keywords :   Growth | Iron | Ubs |

Brockman Resources Limited (ASX: BRM)

 

ASX RELEASE                                                                                                                                              20 January 2009

 

BROCKMAN CONFIRMS NEW DISCOVERY OF DIRECT SHIPPING IRON ORE AT ABALONE - MARILLANA PROJECT

 

 

?                Assay results confirm significant thicknesses of high grade channel iron mineralisation (CID) at Abalone.

 

?                Mineralisation contains low contaminants and moderate to high LOI (loss on ignition) ? Calcined Iron grades average 62 ? 65% Fe.

 

?                All CID mineralisation is shallow and is overlain by detrital mineralisation.

 

?                Good continuity of DSO mineralisation is evident, with many holes ending in mineralisation.

 

?                Supports expanded development concept of 10Mtpa DSO operation in addition to initial 15Mtpa detritals plant.

 

 

Western Australian iron ore company Brockman Resources Limited (ASX Code: BRM) is pleased to report that recently received drilling results have confirmed the continuity of significant high-grade channel iron mineralisation at the Abalone Prospect, part of its 100%-owned Marillana Project in the Pilbara. Better results include:

 

23m @ 56.9% Fe (64.4% calcined Fe), 1.68% Al2O3 and 5.02% SiO2 from 36m in MRC 774

19m @ 56.9% Fe (63.7% calcined Fe), 2.23% Al2O3 and 3.71% SiO2 from 43m in MRC 470

17m @ 57.1% Fe (64.5% calcined Fe), 2.45% Al2O3 and 3.11% SiO2 from 35m in MRC 773

16m @ 57.6% Fe (64.9% calcined Fe), 2.56% Al2O3 and 2.66% SiO2 from 42m in MRC 471

16m @ 57.1% Fe (64.1% calcined Fe), 1.84% Al2O3 and 3.97% SiO2 from 38m in MRC 772

 

This new discovery is located about 5km east of Rockhole Bole and about 10km east of the North-West Sector deposit (see Figure 1 attached). High-grade channel iron deposit (CID) mineralisation has so far been intersected over a strike length of 2km and width of 200 ? 900m at Abalone as shown in Figure 2. 

 

Assessment of these results indicates that the CID mineralisation remains open at depth over much of the area, as many of the holes drilled were too shallow to fully test this zone of mineralisation (with many holes ending in mineralisation ? see Figure 3). The results reinforce the potential to further significantly increase Brockman?s inventory of DSO resources (currently 55.4Mt @ 57.4% Fe or 62.5% Ca Fe) with the estimation of JORC compliant resources for the Abalone CID deposit.

 

?This discovery supports our development plan of adding a 10Mtpa DSO plant to the initial 15Mtpa detritals beneficiation plant after the first three years of production,? commented Wayne Richards, Brockman?s Managing Director.

 

?The discovery also reaffirms our belief that the currently identified North West Sector CID is just part of a larger palaeo-channel that hosts extensive CID mineralisation and extends along the entire length of the Marillana Project. We are confident that we will find additional zones of DSO mineralisation as more results come to hand.?

 

?It is encouraging that the level of contaminants, particularly alumina, is lower than at the North West Sector and this provides opportunities for blending to deliver a product equivalent to existing CID producers. Another benefit for the Project is that CID mineralisation has minimal associated pre-stripping, as the majority of material overlying the CID is detrital mineralisation which will be processed through the beneficiation plant,? he said.

 

Brockman is currently completing a Pre-Feasibility Study on the construction of a 15Mtpa iron ore mining and processing operation at Marillana, commencing production in 2012 and subsequently expanding to 25Mtpa in 2015.

 

Mr Richards said the Abalone discovery highlighted the depth of organic growth opportunities within the Marillana Project alone. ?With ongoing exploration continuing to enhance and expand our core asset at Marillana, this is one key area where the recent appointment of UBS as a strategic corporate advisor will assist in identifying the optimum development pathway for the Project.?

 

Brockman announced the engagement of UBS earlier this month to work together to develop a strategic program to optimise the Company?s long-term value for shareholders.

 

Brockman is in a unique position in the Australian junior iron ore sector with a world-class JORC compliant resource of 1.6 billion tonnes, uncommitted cash reserves of $102 million and close proximity to existing rail, road and port infrastructure.

 

Brockman is also a foundation member of the North West Iron Ore Alliance, which is currently completing a Scoping Study on the Alliance?s proposed port and stockyard facilities in Port Hedland.  Two new multi-user berths in the Port Hedland inner harbour have been reserved for use by Alliance members and other potential junior producers, with a combined capacity of up to 50Mtpa.

 

?ENDS?

 

 

Released by:

Nicholas Read / Kate Bell

Read Corporate

Phone: +61 8 9388 1474

Mobile: (+61 8) 419 929 046

On behalf of:

Wayne Richards

Managing Director

Brockman Resources

Phone: +61 8 9389 3000

 

 

 

 

Competent Person?s Statement

 

The information in this report that relates to Mineral Resources is based on information compiled by Mr M Nimmo and Mr A Zhang.              

Mr M Nimmo, who is a Member of the Australasian Institute of Geoscientists and a full-time employee of Snowden Mining Industry Consultants Pty Ltd produced the Mineral Resource estimate based on the data and geological interpretations provided by Brockman.  Mr Nimmo 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 Nimmo 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 Ltd provided the geological interpretations and the drillhole 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.

 

The information in this report that relates to mineralisation and exploration results is based on information compiled by Mr Colin Paterson, who is a Member of the Australian Institute of Geoscientists. Mr Paterson is a full time employee of Brockman Resources Ltd and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which 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 Resources and Ore Reserves?. Mr Paterson consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

 

 


Table 1 ? Significant Intersections of CID Mineralisation ? Abalone

 

 

 

Notes:    Intercepts calculated at a nominal 55% Fe cut off grade including up to 2m of internal dilution.  Only intersection

widths of 4m or greater shown, unless hole ended in mineralisation.

                All RC drilling with 1m sample intervals.

                Analyses conducted by Ultratrace Laboratories using XRF spectrometry.

                Fe (calcined) calculated by the formula:   Fe (calcined) = Fe% / (100-LOI)*100

 

 

Figure 1           Marillana Project and Location of Abalone CID Mineralisation

           



Figure 2:          Drill Hole Locations and Significant Results ? Abalone CID Mineralisation

 


 

Figure 3           Drilling Cross Sections ? Abalone.

 

 

READ CORPORATE
Public Relations Corporate Communications
T: (+61-8) 9388-1474 | F: (+61-8) 9388-1472 | E: info@readcorporate.com.au | Web: www.readcorporate.com.au 

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Brockman Resources Limited

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CODE : BRM.AX
ISIN : AU000000YGL7
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Brockman Res. is a gold producing company based in Australia.

Brockman Res. develops gold and iron in Australia, and holds various exploration projects in Canada.

Its main asset in development is MARILLANA in Australia and its main exploration property is WEST HAMERSLEY in Canada.

Brockman Res. is listed in Australia. Its market capitalisation is AU$ 366.4 millions as of today (US$ 381.0 millions, € 304.8 millions).

Its stock quote reached its lowest recent point on August 20, 2004 at AU$ 0.10, and its highest recent level on April 08, 2011 at AU$ 6.25.

Brockman Res. has 144 803 151 shares outstanding.

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Corporate Presentations of Brockman Resources Limited
1/29/2008Patersons Research Report
Nominations of Brockman Resources Limited
2/10/2012Acceptance of Takeover Offer by Independent Directors
1/27/2012BRM - Appointment of CEO
6/10/2010Appoints Former Rio Tinto Executive Barry Cusack as Chairman
9/8/2009Welcomes appointment of Mr Ian Campbell as Alliance Chairman
1/7/2009Appoints UBS as Corporate Adviser
9/5/2008Announces Two Key Appointments
3/13/2008 Appoints General Manager - Project Development
Project news of Brockman Resources Limited
12/12/2011Bid Implementation Agreement - Brockman Resources
12/12/2011Recommended Takeover Offer for Brockman Resources
6/17/2011(Marillana)and Wah Nam Confirm Project Development
4/21/2011(Marillana)Quarterly Report for the Period 31 March 2011
2/17/2011(Marillana)Marillana iron ore project receives final environmental appr...
6/1/2010(West Hamersley)Identifies Significant New Hematite Targets at West Hamersle...
5/10/2010(Marillana)Public Environmental Review Commences For Marillana Iron Ore...
11/26/2009 Awards Key Definitive Feasibility Study Contract
9/7/2009(Marillana)New Port Contract Takes Brockman's Marillana Project Closer ...
8/18/2009(Marillana)Receives Key Environmental Approval for Marillana Iron Ore P...
8/10/2009(Marillana)Moves to Definitive Feasibility Study Following Completion o...
3/11/2009COMPLETION OF SCOPING STUDY FOR THE DEVELOPMENT OF MULTI USE...
3/4/2009(Marillana)Abalone Delivers 25% Increase in Marillana DSO Resource to 7...
1/20/2009(Marillana)Confirms new discovery of direct shipping iron ore at Abalon...
12/3/2008(Marillana)Marillana Project Development Update
11/5/2008(Marillana)Marillana Project Development Update
8/21/2008(Marillana)Delivers 40% Increase to Marillana Iron Ore Resource to 1.6 ...
7/16/2008(Marillana)Awards Key Contract for Marillana Definitive Feasibility Stu...
6/5/2008(Marillana) RAISE A$112.5M TO COMPLETE FUNDING REQUIREMENTS FOR EARLY S...
3/5/2008(Marillana)on the Move with Landmark 1.1 Billion Tonne Iron Ore Resourc...
1/18/2008(Marillana)+59% Detritals Upgrade at Marillana
Corporate news of Brockman Resources Limited
2/13/2012Letter to Shareholders
2/9/2012FIRB Approves Wah Nam Australia Takeover
1/31/2012BRM Quarterly Activities Report
1/25/2012BRM Progress Report - Positive Exploration Drilling Results
12/15/2011Target's Statement
12/8/2011Open Briefing with Interim CEO Colin Paterson
8/30/2011Identifies Significant New Hematite at Ophthalmia
7/22/2011(Marillana)Marillana BFS on Schedule for Completion in Q4 2011
6/30/2011support for industry consolidation
6/14/2011Welcomes Conclusion of Wah Nam Bid
6/2/2011(Marillana)Marillana Development on Track
5/16/2011Wah Nam Offer Extended Until 15 June
4/1/2011Shareholder Update - Wah Nam Takeover Offer
2/14/2011Response to Takeover's Panel Reasons
2/11/2011Response to the Takeover Panel's reasons
1/25/2011Response to Media Reports
8/24/2010Brockman reports positive results from key metallurgical sin...
4/21/2010Signs Landmark MOU with Sinosteel for Iron Ore Off-take
5/26/2010Letter to Shareholders Regarding the Resource Super Profits ...
2/24/2010Major Boost for Brockman as Test work Confirms Upgradeabilit...
2/9/2010Major Resource Upgrade takes Brockman=E2??s Iron Ore Project...
1/27/2010Quarterly Report December 2009
10/29/2009September 2009 Quarterly Report
7/29/2009June 2009 Quarterly Report
6/25/2009New Substantial Shareholders
6/2/2009Shareholder newsletter
5/29/2009Shareholder Newsletter
1/20/2009Confirms New Discovery of DSO Iron Ore at Abalone - Marillan...
10/1/2008Signs Landmark Native Title Mining Agreement for Marillana P...
9/26/2008Welcomes High Court Ruling on Declaration of Pilbara Rail Li...
9/17/2008Identifies Potential Target of 30 ? 50Mt of Direct Shipping ...
8/21/2008MEDIA RELEASE : BROCKMAN RESOURCES
8/6/2008Port Hedland Berth Reservation to Brockman Resources Via NWI...
7/30/2008June 2008 Quarterly Activities Report
7/10/2008All Funds From A$112.5M Capital Raising Now Received
7/7/2008Completes A$112.5M Raising to Underpin Early Production Push
7/2/2008Improved Beneficiation Recoveries Indicate Potential 125Mt U...
6/24/2008 Welcomes NCC Recommendation to Declare Pilbara Rail Lines
6/18/2008Paterson's Research Report
6/13/2008Marillana in Prime Location to Benefit from Proposed Pilbara...
4/29/2008Quarterly Activities Report
4/22/2008 Confirms Discussions with Haoning Group
6/5/2007Has joined forces with iron ore miner Midwest Corporation
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