Why Brockman Mining Share Price Jumped 23.33% Higher Today

At the time of writing, shares of Brockman Mining Ltd [ASX:BCK] are up by 23.33%, to 3.7 cents, in today’s trading. Brockman Mining is an iron ore developer listed on the ASX and Heng Seng stock exchanges.

Why did Brockman Mining share price do this?

The company announced that it’s on track to early production. Brockman Iron (a wholly-owned subsidiary of the company) and Polaris (a wholly-owned subsidiary of Mineral Resources Limited [ASX:MIN] entered into a farm-in and joint venture agreement today. Polaris has the option to farm-in and earn a 50% interest in the Marillana Iron Ore Project, located in Western Australia.

Mineral Resources must satisfy a number of conditions to earn a 50% interest in the world-class project, such as completing major parts of the Definitive Feasibility Study (DFS).

What now for Brockman Mining?

Here’s the mineral resource for Marillana:

Source: Brockman Mining

Marillana is an enormous high-grade iron ore project. You normally want to see iron ore grades of around 55%+ these days, with low phosphate as a bi-product.

Marillana fits the bill and could make a lot of money for shareholders.

The joint-venture is a smart decision for the company. It reduces the maximum capital commitment to roughly AUD$150 million for the company. That’s a lot more manageable, considering the company’s market capitalisation stands at $275 million today.

Indeed, it’s still early days for shareholders — the project must go through the DFS process. But if the company can prove its lucrative nature over the next 6–12 months, shareholders could be significantly rewarded.

Jason Stevenson,
Resources Analyst, Markets & Money

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Jason Stevenson is Markets & Money’s resource analyst. He shares over a decade’s worth of investing and trading experience across resource stocks and commodity futures and options. He originally studied accounting and finance at Curtin University, where he was awarded a first-class honours degree. His professional background stems across high-net-worth, top tier accounting (corporate finance, tax and auditing), and sell-side equities research. Before joining the team at Markets and Money, Jason worked at boutique firms which advised fund managers and high-net-worth clients on where to invest. Whether it’s gold, crude oil, copper or an obscure metal like vanadium, you can rely on an in-depth analysis in Markets and Money. Jason also brings you extensive macro, political and geopolitical analysis from around the world. He leaves no stone unturned when it comes to telling the truth. Jason is also the lead analyst of Gold Stock Trader, a premium service for investors serious about precious metal stocks. Websites and financial e-letters Jason writes for:


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