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0425 GMT [Dow Jones] Brockman Resources (BRM.AU) announces major upgrade to resource
estimate at Marillana iron ore project, up to 1.1 billion tons of haematite, far exceeds
previously announced target of at least 100 million tons. Share price more than doubles
to A$2.77, up 144%. Iron ore prices to rise again in 2009-10 contract period, Goldman
Sachs JBWere expects 20% price rise, but from 2010 price to taper off given substantial
new supply coming on stream. Global steel demand growing at about 5% annually, analysts
say. Brockman says Marillana will be world-class project, capable of producing direct
shippable ore with iron content of 59%. MD Wayne Richards says encouraging initial
results from scoping study for the project, nearing completion with results expected
shortly. "We are progressing discussion with third party infrastructure owners as
well as with the Port Hedland Port Authority with regard to ore transport, unloading and
shipping options," says Richards