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  1. 9,438 Posts.
    For those of us who have been here since the start... and you know who you are.. the following article is one that I could only have dreamt about .. well done! The cake has been baked ... now enjoy the cream!

    Brockman upgrade has Midas touch
    Email Print Normal font Large font AdvertisementBarry FitzGerald
    March 6, 2008

    BOOMING Western Australia does not need any new millionaires. But it has got a new bunch, thanks to a big day out on the sharemarket for Pilbara iron ore hopeful Brockman Resources.

    Shares in Brockman came out of Monday's trading halt and surged $1.87, or 165%, to $3 a share after the company confirmed a major upgrade in the resource estimate for its wholly owned Marillana project in the Pilbara.

    The upgrade, from 43 million tonnes of so-called channel iron ore to more than 1.1 billion tonnes of channel iron ore and lower-grade detrital ore that can be upgraded, was foreshadowed in BusinessDay's Garimpeiro column on Monday.

    Although the timing of the upgrade announcement was well known, it was the size that caught the market on the hop. Shares in Brockman closed on Friday at $1.13 and yesterday opened at $1.68, before heading off to the day's peak of $3.21.

    The group's market capitalisation grew from $90 million to $240 million, making a bunch of loyal Perth shareholders — who had held on to their shares from the days when it was the gold explorer Yilgarn — millionaires in the process.

    Brockman managing director and former BHP Billiton iron ore gun Wayne Richards said the resource upgrade gave the group "great confidence that Marillana has the potential to develop as a world-class iron ore project".

    He said a scoping study was well advanced on a potential development of a 10 million tonnes a year (direct ship ore) operation.

    Discussions with third-party infrastructure owners and the Port Hedland port authority are under way.

    Marillana is 100 kilometres north of the iron ore town of Newman. The tenements surrounding Marillana are held by the region's big iron ore players — Rio Tinto, BHP Billiton, Hancock Mining and Fortescue.
 
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