Crusader Resources' Posse iron ore project in Brazil could be in production by April 2010 after the company approved first stage of the project’s development.
Indicated mineral resource at Posse of 4.83Mt at 47.39% Fe and inferred mineral resource of 31.18Mt at 42.89% Fe.
With the project located only 30km from the regional capital and iron ore mining centre of Belo Horizonte, the project is close to infrastructure.
Rob Smakman managing director of Crusader said Posse plans to produce a high grade iron ore lump product for domestic sale as a first stage, followed by the production of iron ore treated through a wet beneficiation plant.
The development is subject to the granting of a mining lease by the Brazilian mines department. A customer has to be secured for the ore.
The first phase, which could be in production as early as April next year, is expected to cost less than $A1 million and process 300,000 tonnes of material a year. Contract mining and treatment of the ore is the key component in keeping the capital costs at a minimum at Posse.
Rob Smakman said all the work done to date indicates a simple, cheap and most importantly, profitable trial mining operation which will also enable Crusader to more carefully evaluate the expanded second stage.
“In anticipation of finalising the mining lease and securing a suitable customer, we are building the development and mining team, opening the tender process for both mining and treatment and finalising the economics of the project," he said.
Fines and lower grade ore will be stockpiled for treatment in Stage 2.
Project implementation and detailed engineering is underway, with the expected opening of the operation after the end of the rainy season in early April 2010.
Source: Proactive Investors
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