re: Ann: 450 Million Tonne JORC-Compliant Res... To...

re: Ann: 450 Million Tonne JORC-Compliant Res... To Bottomup

Either you were looking to ramp DMA downward, or you do not understand the idea of beneficiating Fe.

Brockman Resources have a "Project that contains a Mineral Resource of 1.53 billion tonnes of beneficiation feed mineralisation grading 42.6% Fe, and 101.9 Mt at 55.6% Fe CID mineralisation (off the BRM website)

BRM's 101.9m tons is not the high grade DSO that you plug intio a Chinese furnace either, and therefore would normally be worth less than the rule of thumb $1 per ton
(lets say $70m for argument sake )

Now BRM's market cap is ~ $500m , so the market is valuing its 42.6% Fe at $430m.

Now Bottomup, before I ask you a question on the above, I will quote you

"If you were Chinese buyer, why buy or participate in 30% Fe when so much 50% ++ Fe is available. The deals that will get done are deals like China Rail investing in Ferraus which has 50%+ Fe, talk of Chinese buying into a 30% Fe project are misleading, and investors who know anything about the iron ore market and its dynamics realise this..."

Why would the market and BRM's 19.9% Chinese shareholder put a $430m value on 42.6% Fe ?????

The answer is that they have a done a little more research than you on Iron Ore.

Secondly, are you aware that the huge Chinese group MCC paid $400m to Tony Sage for Cape Lamberts 31% Fe?

You may also not be aware that DMA's detrital is very similar to BRM's detrital, except that DMA has virtually NO overburden, whereas BRM has at least 25m overburden to deal with.

Yes it is true that DMA's present average Fe grade for 320m of the 453m tons is 23%, however DMA's drilling to the south has shown that the Fe is higher than 31%. Secondly DMA is likely to have much more of the detrital than BRM's 1.53m tons.

Beneficiating and yield are the keys, and I refer you to DMA's 11 Feb 2010 announcement.

As the saying goes ' A little knowledge is a dangerous thing'