BRM 0.00% $2.53 brockman resources limited

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    Brockman shares soar on resource upgrade
    Email Print Normal font Large font March 5, 2008 - 12:51PM

    Iron ore explorer Brockman Resources Ltd has increased the resource estimate for its wholly-owned Marillana project in Western Australia's Pilbara to 1.1 billion tonnes of haematite mineralisation.

    The Perth-headquartered company's shares soared on the news, up $1.11, or 98.2 per cent, to $2.24 at 1244 AEDT on Wednesday.

    The resource is compliant with Australia's mineral reporting standard, JORC, and includes channel iron deposits with grades ranging from 55-60 per cent iron.

    Managing director Wayne Richards said the resource inventory was based on three deposits within the project area, 100km north of Newman.

    The initial indicated resource announced last year, based on one deposit, was 43.5 million tonnes grading 57.6 per cent iron.

    Mr Richards said the upgraded resource significantly exceeds the company's previously announced target to confirm a mineralisation potential of at least 100 million tonnes.

    "This gives us great confidence that Marillana has the potential to develop as a world-class iron ore project, capable of producing ore as a direct shippable ore (DSO) product with an average grade of over 59 per cent iron," he said.

    A scoping study is underway for a potential 10 million tonne per annum DSO operation.
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