PERTH (miningweekly.com) – Emerging iron-ore producer Brockman Resources has declared a maiden hematite ore reserve of 1,05-billion tons at its Marillana iron-ore project, in Western Australia.

Around 868-million tons of this reserve is in the probable category, while a further 133-million tons has been classified in the proven category.

Brockman said on Thursday that based on beneficiation test work, the detrital ore is expected to produce around 378-million tons of final product, grading between 60,5% and 61,5% iron.

The Marillana project would produce in excess of 426-million tons of final direct shipping ore (DSO) equivalent product, and at current prices, this ore has the ability to generate revenues greater than A$50-billion.

The results have also confirmed that the Marillana project has an estimated life-of-mine of about 25 years, at production rates of between 17-million tons a year and 20-million tons a year of final product.

The resource definition at Marillana was done as part of the definitive feasibility study (DFS), which has now been completed, and would be released later this month.

Process design and engineering of the preferred process route has also been completed and pricing of major equipment packages has been factored into the capital cost estimates.

Financial modelling based on the DFS capital expenditure and operating expenditure estimates have also started to determine the financial parameters of the optimal project delivery strategies.

Brockman noted that the pit optimisation, openpit design and definitive mining schedule have now been optimised as part of the development of the ore reserve statement.