Ophthalmia Project
Overview

The 100% owned Ophthalmia Iron Ore Project (Ophthalmia or Project), located north of Newman in East Pilbara region of Western Australia, is the most significant iron ore project for the company outside of its flagship Marillana Project. Since the discovery of significant occurrences of bedded hematite mineralisation by field reconnaissance mapping and surface sampling in August 2011, major exploration drilling programmes have been completed and JORC-compliant Mineral Resources have been estimated and reported for the Sirius, Coondiner and Kalgan Creek Deposits. The total Mineral Resources at Ophthalmia currently stand at 341 Mt grading 59.3% Fe.

Figure 2: Location of Ophthalmia Prospects

Mineral Resources

Based on extensive reverse circulation and diamond drilling programmes carried out in 2011, 2012, and 2013, Brockman has developed initial Indicated and Inferred Mineral Resource estimates for the Kalgan Creek, Sirius and Coondiner Deposits. The Mineral Resource at the Coondiner and Kalgan Creek Deposit was upgraded in December 2014, and significantly, 280 Mt of the total resource is now classified as Indicated Resources, whereas the rest 61Mt of the total resource is in the Inferred Resources category.

The upgraded Mineral Resource estimate for the Coondiner and Kalgan Creek Deposits was prepared by Golder Associates Pty Ltd and it has incorporated the results of an additional 193 infill and extension RC drill holes (13,627m) completed in 2013 and 2014. The resource estimate was classified in accordance with guidelines provided in the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code, 2012). Refer ASX Announcement 1 December 2014.

Together with the previously announced Mineral Resources for the Coondiner and Kalgan Creek Deposits , released to the ASX on 10 March 2014, 19 April 2013 and 4 December 2012 respectively, the total DSO Mineral Resources at the Ophthalmia Project now stand at 341 Mt grading 59.3% Fe (Table 5), of which 280 Mt is classified as Indicated Resources.

Table 5: Ophthalmia Mineral Resource (DSO) Summary
Deposit Class Tonnes
(Mt)
Fe
(%)
CaFe*
(%)
SiO2
(%)
Al2O3
(%)
S
(%)
P
(%)
LOI
(%)
Coondiner
(Pallas and Castor)
Indicated 140.5 58.5 62.0 5.18 4.46 0.007 0.176 5.71
Inferred 17.1 58.1 61.5 6.06 4.45 0.008 0.155 5.47
Sub Total 157.6 58.4 62.0 5.27 4.46 0.007 0.174 5.68
Kalgan Creek Indicated 34.9 59.3 62.7 4.08 4.57 0.009 0.183 5.49
Inferred 24.4 59.5 63.2 4.38 3.90 0.007 0.157 5.81
Sub total 59.3 59.4 62.9 4.21 4.29 0.009 0.173 5.63
Sirius Indicated 105.0 60.4 63.7 3.54 3.97 0.007 0.178 5.22
Inferred 19.0 60.2 63.4 4.09 3.83 0.009 0.168 5.14
Sub total 124.0 60.3 63.6 3.62 3.95 0.007 0.177 5.20
Ophthalmia Project Indicated 280.4 59.3 62.7 4.43 4.29 0.007 0.178 5.50
Inferred 60.5 59.3 62.8 4.76 4.03 0.008 0.160 5.50
Total 340.9 59.3 62.7 4.49 4.24 0.007 0.175 5.50

*CaFe represents calcined Fe and is calculated by Brockman using the formula CaFe = Fe% / ((100-LOI)/100)
** Tonnes may not add up due to rounding

Brockman has commenced a Pre-Feasibility Study for a 15 Mtpa DSO mining operation at Ophthalmia. The study will be predicated on Brockman achieving a rail infrastructure solution for its Marillana Project, located about 80 km northwest of Ophthalmia.