brm, page-67

The loose wording around JORC resources lends itself to very subjective interpretation around the concept of whether a deposit may be "economic". In this case I do not think it is unreasonable to believe that this resource may be economic at some time in the future. In that regard Snowden appear to have taken direction from the company and I don't think have done anything wrong. However the detrital ore could be economic, but from most accounts this could only happen if iron ore are at unusually high historical levels and predicted to be for a very long time. So you see, BRM's resource could potentially be economic.. but when will it be? 10 years? Maybe 100 years??

The inferred part of the JORC resource refers merely to the probability of continuity of mineralisation so in this case does not provide for a set criteria for ore economics.

For the newbies, the conversion to JORC reserve is the key here - this is based on Definitive or Bankable Feasibility Studies which actually take into account economics as well as resource size.

It has been mentioned to me that the high Si and Al may require some sort of chemical based beneficiation at the marginal end of things which would increase capex/opex by leaps and bounds. It would be interesting to see what the official levels they can get are with bulk testwork.

Given the fact they have not announced the full testwork results I take this to mean that they are not yet successful. I think Showman is right and the Al levels will be the sticking point. BRM will most probably be working hard to figure out a processing route that works. I will never say never but to me they are implying an easy, almost certain route to marketable ore when in reality there may be considerable risk that they will never get there.

Like I said, this could work but it could take a very long time or require new technology and unproven processes. However if the company announces tomorrow that full bulk testwork and circuit design has been completed that allows for an end product with acceptable impurities WITH a good margin for error (i.e. not at the upper end of the allowable impurities range) then I would seriously consider re entering.

If I were BRM I would be devoting at least part of my drill program to discovery of high grade ore, if anything to blend with their other ore which would help at reserve stage.

Cheers
UIO