Brockman announces potential 125Mt uplift in Marillana project inventory

July 2, 2008

July 2nd (Mineweb) – Average +59% recovery achieved from beneficiation test work on detrital mineralisation from Marillana Project – compared with 47% previously reported. Potential to generate an additional 125Mt of beneficiated haematite grading +59% Fe from the current 1.06 billion tonne Beneficiation Feed Mineral Resource. This would potentially increase the total marketable product by over 20% to +680Mt of DSO and beneficiated haematite. At the current contract FOB Hamersley Fines price of approximately A$90/tonne, this represents a potential increase in revenue for the Marillana Project of greater than A$11 billion.

Brockman Resources Limited (ASX: BRM – ‘Brockman’) is pleased to announce positive new results from ongoing beneficiation test work on the detrital mineralisation at its 100%-owned Marillana Iron Ore Project in Western Australia‘s Pilbara region.  The results demonstrate the potential to increase the Project’s total estimated shipping inventory (Direct Shipping Ore plus beneficiated mineralisation) by greater than 20% to over 680 million tonnes.

Completed bench-scale tests on nine sonic core samples from the Marillana Project have returned an average weight recovery of over 59%, compared to 47% from the preliminary results reported on 18 January 2008.  Significantly, these increased recoveries have been achieved at similar recovered grades (i.e. 59-60% Fe) to previously reported results.

Based on this increased average recoveries, the Beneficiation Feed Mineral Resource at Marillana of 1.06 billion tonnes grading 44.2% Fe (as announced on 5 March 2008) has the potential to generate 625 million tonnes of beneficiated haematite at an average grade of 59.2% Fe.  This compares with the previously announced estimate that the detrital mineralisation could generate approximately 500 million tonnes of beneficiated haematite grading +59% Fe (as announced on
5 March 2008).

When combined with the current DSO Mineral Resource of 56.2 million tonnes @ 57.5% Fe, the total potential shipping inventory at Marillana has increased by over 20% to 680 million tonnes of haematite

The results indicate that the final product grade is largely independent of the head grade or mineralisation type, producing a tight cluster of grades in the 59 – 60% Fe range, with only one outlier (S7) as shown in Table 1.

The overall weight recovery appears to be dependent on head grade and mineralisation style, with the pisolite samples returning approximately a 10% higher recovery, as compared with the siliceous detritals, for a similar head grade.

The samples tested were representative of the different types of detrital mineralisation and have an average head grade comparable to the average grade of the Beneficiation Feed Mineral Resource.

Commenting on the results, Managing Director Wayne Richards said: “These results are very encouraging and provide further technical confidence in the quality and potential of the very large detrital resource at Marillana to underpin a greatly expanded long-term operation.

“The Scoping Study announced on 16 April was based on a conceptual 10 Mtpa DSO Project” he added. “The forthcoming Pre-Feasibility Study will be expanded to include the detrital mineralisation as the basis for a significantly larger operation in the 15-25Mtpa range.

“Scale is very important in the iron ore industry and our ongoing work is continuing to prove up both the size and quality of the Marillana Project,” Mr Richards continued.

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