detritals, page-31

So the point is what BRM may lose on the swing it makes up for on the roundabout.
we cant only accentuate the negatives and downplay the positives.

Swing - detrital, not premium grade, so wont get $80 FOB (maybe only $60 FOB after beneficiation).
Doesnt have offtake agreements yet.
The Feasibility study on the detrital still to be completed.
No formal agreements signed yet with RIO, BHP on sharing infrastructure.
the usual development risks.

Roundabout

IO prices are about to rise - so maybe will get $80/T for its beneficiated ore as the premium goes to $100/T and above.

- low cost single stage crushing and grinding,

Pilbara location close to BHP and RIO infrastructure -

will benefit from the freight differential and proximity to Asia - which will only increase as oil prices and shipping costs continue to rise.
So what if 60% Fe detrital doesnt fetch as much as the 65% premium low contaminant ores - the freight differential(shipping costs are $70/T from South america and only $25/T from Pilbara - so let's say Pilbara producers get$10/t more for its ore now, it'll probably get $25/T more in 5 years time as oil continues to rise).

Internal testwork has determined -
Detrital upgrades to 60%Fe - cheap single stage crushing and grinding.
- (i think the beneficiation process will only cost $5/T).

Scale - potential of 600MT of beneficiated ore... and scale of 25MTpa should reduce costs.
detrital requires no blasting is free digging.

By all means we should consider the negatives - but I feel the positives are tipping the scale - the fact that it can raise $100 mill is a positive and endorsement.

Also BRM has another 10 Iron ore tenements - 10 more goes at it - the first go has been good.