Brockman hires Ausenco for iron project

Brockman Resources has hired Ausenco to provide advice for the prefeasibility study over the company's Marillana iron ore project in the Pilbara.

Ausenco will work with Coffey Mining to help deliver a report covering the much larger stage two project.

The report is expected to be completed in June next year.

Last month, Brockman announced it would scrap its initial development plans for stage one of the project, saying it was prudent at a time of economic uncertainty to advance to the stage two.

The company had envisaged starting a 2 million tonne a year operation by late next year as part of stage one, before ramping up to a production capacity of between 15 million and 25mt a year by 2012.

The announcement is pasted below:

Western Australian Iron Ore Company, Brockman Resources Ltd (ASX Code: BRM), is pleased to announce the signing of a contract with Ausenco Ltd for consultancy services associated with the Pre-Feasibility Study (PFS) for the Stage 2 development of its 100%-owned Marillana Iron Ore Project located 100km north west of Newman, in Western Australia's Pilbara region.

Ausenco is a global leader in engineering, project management and operations solutions to the global resources and energy industries. Ausenco will work with specialist mining consultants Coffey Mining on the Stage 2 PFS, with work to commence immediately and the Study Report to be submitted in June 2009.

Managing Director of Brockman Resources, Mr Wayne Richards, said, "Ausenco brings vast process technology experience, which, together with Coffey Mining's 50 years experience as a specialist mining consulting group, provides Brockman with a strong foundation for the continuing development of the Marillana Iron Ore Project".

Stage 2 development of the Marillana Project comprises a 15 - 25Mtpa mining operation with a forecast mine life of up to 40 years. The development will provide for production of two high-grade iron ore products, with both channel iron deposit (CID) and beneficiated haematite ores being mined and exported.

Brockman is in a unique position in the Australian junior iron ore sector with a world-class JORC compliant resource of 1.6 billion tonnes, uncommitted cash reserves of $103 million and close proximity to existing rail, road and port infrastructure.

In parallel with the Stage 2 PFS, Brockman will be progressing a number of complementary development activities for the Marillana Project, including:

- Completion of all Environmental surveys and submission of the formal Environmental Impact Assessment for the Stage 2 Project;

- Finalising negotiation of a Mining Access Agreement with the Nyiyaparli Native Title Claimant Group to progress the grant of the Mining Lease. Brockman has already signed an agreement with the Martu Idja Banyjima - MIB Group;

- Continuing negotiations with third party rail infrastructure owners/operators for access and/or haulage agreements in accordance with regulatory processes; and

- Completion of the Scoping Study on the development of the port berths and associated facilities at Port Hedland (as part of the North West Iron Ore Alliance).