Crusader Resources gets the green light for Brazilian iron ore production
Aussie-miner Crusader Resources's (ASX:CAS) plans for expansion into Brazilian iron ore production have obtained the go-ahead from local government.
The Australian reports that the Perth-based company is expect to confirm this week that Brazilian authorities have issued a mining license for its Posse project in the iron-rich state of Minas Gerais.
The project has been primed for production since October 2010 yet operation has been delayed by a protracted applications and approval process, during which period the company has expanded its Brazilian projects to include the Borborema gold project with probably gold reserves in excess of 1.6 million ounces.
Iron ore produced by Posse is destined for the local market, and is expected to sell for $80 per tonne compared to production cash costs of $15 per tonne.
Despite the upbeat news shares in the Aussie miner slumped nearly 6% in Monday afternoon trading in Sydney.