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
PLEASE NOTE:
This e-mail and any attachments may contain confidential and/or privileged material and is for the intended addressee(s) only. If you are not an intended addressee, you must not use, copy, retain, disclose or distribute this information. Please notify the sender immediately by return e-mail and delete the message from your system. If you believe that this message constitutes a Commercial Electronic Message (CEM) under the Spam Act 2003 and you wish to unsubscribe please contact the originator of this message with the subject line of unsubscribe.
Note: Virus scanning is carried out on all incoming and outgoing email, but cannot be guaranteed to be timely, secure, error or virus-free. To protect against computer viruses, e-mail programs may prevent sending or receiving certain types of file attachments. If you are having problems please check your e-mail security settings to determine how attachments are handled.