Brockman ResourcesBROCKMAN Resources (BRM) chief Wayne Richards is to fly from Perth to the eastern states mid-week. The reason is not clear, but you can bet he isn't coming to take in a mid-week race meeting.
What is known is that Richards, formerly an iron ore gun in the Pilbara with BHP Billiton, has flagged that in late February/early March the group would provide an update on the resource base of its Marillana iron ore project, one that is cut across by BHP's iron ore rail line to Port Hedland.
Marillana was upgraded in November to a more-than-handy 43.5 million tonnes of the so-called channel iron ore and there has been aggressive drilling since, as well as lots of work on the potential for the low-grade detrital mineralisation that overlays the channel iron ore to become part of the picture.
Simple screening and gravity separation allows detrital iron ore to be upgraded from 40-50% iron to more than 60% - the sort of stuff that attracts top dollar. Assuming Brockman has had further success in its tests, the initial target Richards set on his arrival last year of an initial indicated resource of 100 million tonnes at Marillana could well be in the bag, maybe many times over. We'll know this week.
Remembering that iron ore price rises of more than 65% have been secured in recent negotiations, Pilbara iron ore is worth between $92 a tonne (fines) and $120 a tonne (lump). So having 43.5 million tonnes is good, 100 million tonnes-plus is even better.
Ahead of Richards' tour east, Brockman shares closed at $1.13 on Friday, giving it a market cap of about $90 million.
BRM Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
