“This Iron Ore Mine for Sale in Belo Horizonte, Minas Gerais, Brazil is only 55 km from a major city, and it is surrounded by existing operations, logistics and is close to a port.
The total estimated reserve is 250-300 MT. The area is under exploration. As reported, it has a JORQ Resource of 230.6 MT but the ROM (Run of Mines) quality is 44.52 Fe, which is low in quality, but with proper smelting, it can reach more than 60% Fe content with an average recovery rate of 33%.
In view of this, only 33% of the material will be used for making sinter & pellets. Logistics are good. 100% as the Iron Ore is hematite, and operational mines in the area are presently producing 1.5km Million Tons/Year.
Production is ramping up to 3 MT over the next year with plans to take production to 8 MT per year in the future.
Exploration details – Number of boreholes drilled and JORC resources categorized.
The Ponto Verde mine continues for over 2 kilometres past the southern boundary of the Project. The Cauê Formation runs roughly northeast and is about 100 meters thick. The Gandarela Formation overlies the Cauê Formation to the northwest.
230 MT JORC – Another 230 – 350MT of targeted resources. Notices are pending and can be made available upon official expression of interest.
Mine has been operational since March 24, 2010 when the Company announced that it had signed an agreement to acquire the mineral and property rights at Ponto Verde, located in the heart of the Iron Ore Quadrilateral, 55 kilometres from the town of Belo Horizonte in Minas Gerais. Project’s holding company is SAFM Mineracao Limitada (SAFM Brazil).
Another mine in production since 2011.
Logistics : Short distance from mines to washing plant, to rail, and to port – translates into lower transaction costs of material to port.
SAFM Brazil owns the existing refurbished plant and machinery at the Project. The Company intends to conduct a feasibility study to evaluate the upgrading of infrastructure and mining operations to increase productivity. The Company anticipates that production will commence from known, near-surface sources and the continuation of past mining areas. Current installed equipment includes a belt feeder, primary jaw crusher, secondary jaw crushers (two operating parallel and one on standby, two double deck screens and belt conveyors. SAFM Brazil has replaced the entire electrical cable system, some electrical motors, the belt conveyors’ accessories and created new electrical and control rooms. The remaining plant infrastructure is also in good condition and is ready to commence operations. An upgrade to a wet operation is necessary to allow increased yield and higher ore grades – up to 65% Fe. The Project has unpaved roads that are in good condition and is located close to a highway. A regional power supply can be connected and water supply comes from ground water sources within the project area.
* $30 mt Transportation cost. Agreement with Vale is in place for rail and ports – Vale requires legal access through the mine to reach their mountain of Iron Ore reserves – 1B MT.
Accommodation and availability of rail to port.”