Sydney-listed Crusader Resources (ASX:CAS) has finally obtained a long-awaited operating license for the Posse iron ore project.
Proactive Investors reports that mining on the project, situated in the resource-rich Brazilian state of Minais Gerais, will commence immediately with first output expected early next year.
Rumors had spread towards the end of last month that the project, which has been primed for production since October 2010, was on the verge of obtaining approval following lengthy delays in the application process.
During the intervening period the company expanded its portfolio of Brazilian projects to include the Borborema gold development with probable ore reserves in excess of 1.6 million ounces.
Under the License to Operate (LOP) for the Posse project issued to Crusader Resources by the Minas Gerais state environmental council the company can commence operations under its current trial mining license for 300,000tp of run-of-mine ore production by means of dry beneficiation.
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.