BRM brockman resources limited

geologist or mining engineer help please, page-49

  1. 2,131 Posts.
    Bleasby

    As there are unknowns, I will be making a few assumptions.

    This will be an off the cuff reply so some of the names and figures may be a little wrong but it would take me hours to re-read everything that I would need to, to get it all right.

    If they are to export 20 million tonnes a year some will come from CID so that will not need to be beneficiated.


    So lets assume that they find enough CID to equal 10 m tpa, drill and blast, crush it, screen it and away it goes, on the Wayne Richards express (toot toot) straight to the shiny new port at Balla Balla, easy peasy.

    Now comes the harder part (warning assumptions coming up)
    Number 1
    The ore is of a uniform size greater than 3mm but smaller than 15mm and all of the gangue (waste) is of a smaller size fraction, so all that needs to happen is the ore is screened , the crap goes to a waste dump the ore goes on the Wayne Richards express (toot toot) straight to the shiny new port at Balla Balla. Job done. Low capex low opex. Brm market cap, well I don't know but if you compare some other small fe producers I would say a few billion. I believe that if it was this simple then we would already know about it.


    Number 2

    The ore is of a size ranging from 50 microns to 70 mm and the waste is not imbedded in the ore particles. So simply screening won't separate the waste, it will still need to be done to aid in the next stages of separation. The ore could be separated by a simple gravity separation method (if I go into to detail I will be writing a novel). The ore goes on the Wayne Richards express (toot toot) straight to the shiny new port at Balla Balla. Job done. Mid level capex mid level opex.




    Number 3


    Now we get to the part where the capex starts to climb. If the waste is imbedded in the ore, so simply screening and gravity won't separate the waste. It will need to be ground ( http://www.flsmidthminerals.com/Products/Grinding/Grinding.htm ) to liberate the particles from each other prior to further separation, i.e. spirals cyclones jigs Whims, the list goes on (if I go into to detail I will be writing a novel) The more the ore needs to be ground the higher the costs. If after all of that, the silica and alumina are of an acceptable level then the ore goes on the Wayne Richards express (toot toot) straight to the shiny new port at Balla Balla. Job done. Capex hmmmmm not really sure but would be in the hundreds of million, opex, how long is a peice of string but not cheap. So to answer the part about duplication, no it would not need two duplicated 10mtpa plants depending on yearly tonnage may only need one.


    You wrote "To assist your reply, Westcott has said “Most of the Silica will be gone in the first pass of processing,this entales screening,then heavy liquid screening, then will be mixed with the fines from the DSO which is needed for sintering.” By liquid screening you have previously interpreted this to mean HMS or heavy media separation".

    Frankly it confused me more than helped, I take it first pass processing means screening as per number 1 . Quote "Most of the Silica will be gone"... well I think it started at 40% so if 15% is still there then that is not good enough, also no mention of alumina. Then comes the bit that I don't understand, "heavy liquid screening" may mean cycloning with a ferro-silca heavy medium or HMS, not really sure (not cheap), Maybe I should give the guy a ring (Wescott what was his number??)

    Pipe work sharing, could happen but it just gets messy, what if both parties need it at the same time, just a lot easier to go alone on it, a 30(?)klm pipe line wont break the bank ( a bit of info here http://www.mining-technology.com/projects/samarco/ ). A rail spur would be different I would think, they (FMG) may only give line access (the ore is transported for BRM under contract) as opposed to track access where, BRM has their own rolling stock and drive on the FMG line (think big dollars!!!). Toot Toot.

    I know that I haven't addressed all of your points but in regard to BHP, I think it is anyone's guess, but they are a big company with a lot of clout and deep pockets.

    I believe the best option for BRM (a lot of things have to happen before any of this can take place) is a 20 mtpa we shall see, if they announce that the ore is upgradeable to low silica and low alumina then it will be game on, until then the market won't buy it, the market likes certainty.

    We can put a man on the moon, so we can build a 100 million tonnes per annum beneficiation plant if we had the resource and dollars, so I do not see size as the problem but cost and efficiencies.

    Caution the above is the ramblings of an uneducated fool.

    I may buy some during the week lol!!!
 
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