Brockman Resources

A future Australian iron ore producer

While 2009 may have been a busy year for Brockman Resources Limited, an emerging iron ore producer from Perth, Western Australia, the flurry of exciting announcements and developments is far from over.

This past year’s achievements have allowed Brockman to place itself in poll position within the emerging iron ore sector, bolstered by a portfolio of enviable exploration results and project development. Staring down the gauntlet of 2010, the company has wasted no time in continuing to deliver such exciting news.

Becoming Brockman Resources Limited: A History

The Brockman story begins when the company was listed on the ASX as Yilgarn Mining Limited back in 2004 as an iron ore, nickel, copper and gold exploration company. In 2007, its shareholders voted to change the company name to Brockman Resources Limited in order to reflect the company’s strategic decisions to move towards becoming a potential future iron ore producer.

This apt new name stems from the Brockman iron ore formation in the Pilbara region of Western Australia. This area is renowned for its vast mineral deposits, particularly iron ore. Amongst numerous tenements Brockman Resources holds over the Brockman iron ore formation is the 100 per cent-owned Marillana Iron Ore Project—a world-class, high quality iron ore project located in the Hamersley Iron Province. Marillana is Brockman’s current flagship project and a source of great interest and news today.

The Marillana Iron Ore Project

On Wednesday January 6, 2010, Brockman announced that the Department of Mines and Petroleum for Western Australia has granted a mining lease M47/1414 for Marillana. The project is well-on track for its targeted first production in 2012 and Wayne Richards, Managing Director at Brockman Resources, told press that all of both the metallurgical and resource drilling to support the Definitive Feasibility Study for Marillana is now complete.

“It’s a great kick-start to the new year,” Richards says.

“This coincides with the market forecast for a solid start to 2010 with the implied iron ore FOB spot price now attracting an 80 per cent premium to the 2009 contract price.”

Richards says that Brockman is now focused on continuing towards the third quarter scheduled completion of the feasibility study.

The E47/1408 tenement, held by Brockman Iron Pty Limited, a wholly-owned subsidiary of the Brockman Resources parent company, spans 96 square kilometres of the Fortesque Valley and meets the Hamersley Range for a strike length of 16 kilometres in which extensive areas of supergene iron ore mineralisation are developed within the dissected Brockman Iron Formation.

Brockman’s future: Infrastructure and increasing the resource

Located approximately 100 kilometres north-west from Newman in the Pilbara region, Marillana enjoys close proximity to vital existing infrastructure including roads, rail and Port Hedland which is the highest tonnage port in Australia.

“The Port PFS (Pre-Feasibility Study) will provide a vital framework for the port development requirements to accommodate the NWIOA (North West Iron Ore Alliance) members’ projected 50 million tonnes per annum of iron ore exports by 2013,” Richards says in the Marillana mining lease M47/1414 press release.

“This framework along with the achievement of a rail arrangement will support the ‘end-to-end’ infrastructure pre-requisites for the development of the Marillana Project.”

In addition to establishing the rail and port facilities for Marillana, Brockman’s current focus is geared towards upgrading the resource classification and verifying metallurgical variability.

Following approval of an Environmental Scoping Document (ESD) from Australia’s Environmental Protection Agency (EPA) on August 18, 2009, Brockman announced that Marillana is capable of producing between 17 to 20 mtpa of haematite at iron grades between 58 and 62 per cent over this initial 20 year mine life. Today, Marillana is valued at $1.6 bn based on 17Mt per annum production over 20 years.

Brockman Resources is poised to become the fourth largest iron ore producer in Australia. With a focus to develop and invest in existing infrastructure, an estimated resource ripe for expansion and a site history which more than proves Marillana’s potential, this company is placed for another exciting year of growth and development and it sticks to that first production target of 2012.

www.brockman.com.au

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