Brockman Confirms Discovery Of DSO Iron Ore

West Australian iron ore company Brockman Resources Limited reports that recent drilling results have confirmed the continuity of significant high-grade channel iron mineralisation at its Abalone Prospect, part of the 100%-owned Marillana Project in the Pilbara.

Results were as follows:

1. 23 metre @ 56.9% Fe, 1.68% Al2O3 and 5.02% SiO2 from 36 metre in MRC 774

2. 19 metre @ 56.9% Fe, 2.23% Al2O3 and 3.71% SiO2 from 43 metre in MRC 470

3. 17 metre @ 57.1% Fe, 2.45% Al2O3 and 3.11% SiO2 from 35 metre in MRC 773

4. 16 metre @ 57.6% Fe, 2.56% Al2O3 and 2.66% SiO2 from 42 metre in MRC 471

5. 16 metre @ 57.1% Fe, 1.84% Al2O3 and 3.97% SiO2 from 38 metre in MRC 772

This new discovery is located about 5 kilometres east of Rockhole Bole and about 10 kilometres east of the North West Sector deposit. High-grade channel iron deposit mineralisation has so far been intersected over a strike length of 2km and width of 200 - 900m at Abalone.

Assay results confirm significant thicknesses of high grade channel iron mineralization at Abalone. Mineralisation contains low contaminants and moderate to high LOI, calcined iron grades average 62 to 65% Fe. All CID mineralisation is shallow and is overlain by detrital mineralization. Good continuity of DSO mineralisation is evident, with many holes ending in mineralisation.

Supports expanded development concept of 10 million tonnes per annum DSO operation in addition to initial 15 million tonnes per annum detritals plant.

Mr Wayne Richards MD of Brockman commented that "This discovery supports our development plan of adding a 10 million tonnes per annum DSO plant to the initial 15 million tonnes per annum detritals beneficiation plant after the first three years of production."

Brockman is currently completing a pre feasibility study on the construction of a 15 million tonnes per annum iron ore mining and processing operation at Marillana, commencing production in 2012 and subsequently expanding to 25 million tonnes per annum in 2015.

Mr Richards also said that the Abalone discovery highlighted the depth of organic growth opportunities within the Marillana Project alone. He added that "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 optimize its 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 USD 102 million and close proximity to existing rail, road and port infrastructure.

Source: Steel Guru