BRAZIL – Brazil Minerals announced that an independent technical report for the Iron project in Minas Gerais estimates that the project area contains 7.4 million tonnes of iron ore, within a deposit that is up to 45 metres deep.
The 16.7-sq.-km project is located in the Quadrilatero Ferrifero (iron quadrangle), close to one of Vale’s first iron ore mines.
According to Brazil Minerals, the local geology shows possible secondary deposits, which includes occurrences of eluvial and colluvial iron mineralization with potential for lump ore production.
“This type of product is aimed at the domestic market and, in general, presents a combination of low production cost and relatively high margins, when compared with iron production for export,” the miner said in a media statement. “Currently available data indicates the potential for an operation with annual net profits of up to US$1 million and a mine life between 10 and 20 years.”
At present, the company is optioning the project for an aggregate purchase price of approximately US$1 million, payable in installments over two years.
“Additionally, Brazil Minerals has begun a collaborative effort with a university laboratory with expertise in iron concentration and separation processes. The company’s intent is to quickly identify the most cost-effective route for processing for the specific iron mineral found in this project, a key step for operational planning purposes,” the media brief states.
The California-based firm has said that by partnering with academics, it wants to find solutions for processing iron ore without water and enabling smaller-scale operations to increase profitability and product quality.
This story originally appeared on www.Mining.com.