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Brazil Minerals encouraged by resource estimates for Iron Project

Iron Project. (Image courtesy of Brazil Minerals).

Brazil Minerals (OTC PINK: BMIX) 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 for a deposit spanning up to a depth of 45 metres. 

The 4,120-acre project is located in the “Quadrilátero Ferrífero” (Iron Quadrangle), in close proximity to one of Vale’s (NYSE: VALE) first iron ore mines.

The Iron Project is located in the “Quadrilátero Ferrífero,” in the central-southern part of the Brazilian state Minas Gerais

According to Brazil Minerals, the local geology shows possible secondary deposits, for example, occurrences of eluvial/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 $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 $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.