In a bid to capitalise on the current strength of the iron ore market, Brockman Resources Ltd has appointed Perth-based engineering company Engenium Pty Ltd to immediately start a definitive feasibility study into its Marillana project.
Brockman managing director Wayne Richards said the study for stage 1 development of Marillana, consisting of a start up production rate of 2 million tonnes per annum, will start immediately to capitalise on its recent fund raising.
Earlier this month the company finalised a share placement worth $112.5 million.
"With the appointment of Engenium to manage this DFS, we intend to commence work immediately and will seek to appoint a Project Manager within the next few weeks to lead both the DFS and construction activities," Mr Richards said.
"Our aim is to move the Marillana Project through to production as quickly as possible to leverage from the current strength in the global iron ore market.
"While the Stage 1 DFS is ongoing, we intend to also undertake a Feasibility Study for Stage 2 of the project development, which will involve a processing plant and additional infrastructure to support an initial 15mtpa operation."
Brockman has also flagged its intention to enter into early contract negotiations with potential mining and construction contractors for the start up of Stage 1 mining and processing operations at Marillana.
A scoping study for the Marillana Project in April indicated a potential $1 billion net present value for a 10Mtpa project development.
