the next brm?, page-26

Analyst99 has asked a question as found in following quotation.

"What product to ore yield ratio are people assuming?
BRMs looks superior to DMAs. Potentially a large value difference right there? "

Whilst this issue has been dealt with by me in general terms ( see my previous posts ), I can sympathise with Analyst99 and others who may still think it has not been, since it was not detailed in the 27th October Investor Presentation release to the ASX, nor in the 29th October Quarterly.

I therefore deem it important to quote from the flyer that DMA produced for the 3 day Mining conference in Brisbane last week. This flyer explains the guts of what Analsyst99 is questioning in a detailed manner, comparing DMA with BRM. If anyone has any questions, they should preferably speak to a competent geo. ( just in case anyone gets confused by the details, the latest results showed that 50% of the DMA Ore will NOT require beneficiation.

Here goes excerpts of the DMA flyer.



Deposit and Peer Comparison:

1st Phase beneficiation test‐work shows that ~50% of the ironstone gravels is less than 1.18mm in size and this fraction contains less than 25% of the iron. This material can be removed by a simple process of screening and washing at a relatively low cost (est. ~$0.20/t). Therefore, Dynasty can up‐grade the ore feed and reduce the volume which is processed through a beneficiation plant by ~50%. The deposit compares to magnetite in its in‐situ grades, but will be cheaper to mine and process to hematite product because no need to drill blast, crush and grind and no overburden.

Brockman Resources Marillana Deposit:

JORC Resources of 1.6Btonnes @ 43%Fe, generating Plant Feed of 1.0Btonnes at 42% which is beneficiated to a DSO

Product of 419Mtonnes at 61% (yield on resources 26%; yield on Plant Feed 42%)


Dynasty ? TARGETS drawing on preliminary results of 1st
Phase preliminary beneficiation test‐work

JORC Resources of 932Mtonnes @ 27% Fe, generating est. Plant Feed of ~450Mt at ~38% Fe and, scope to be beneficiated to a DSO Product of ~190Mtonnes at average ~ 57% (yield on resources 17%; yield on Plant Feed 42%)

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I have also attached an article that highlights the Iron ore fundamentals going forward

http://www.bloomberg.com/news/2010-11-04/commodities-to-surge-on-demand-dollar-standard-chartered-s-murthy-says.html