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Cadence Minerals PLC on Tuesday said its pre-feasibility study for the Amapa Iron Ore project in Brazil has delivered ‘robust economics’.
The London-based early stage investment and development company focused on the mineral resource sector said the study confirmed the potential for the Amapa project to produce high-grade iron ore concentrate. Cadence Minerals holds a 30% stake in the Amapa project.
The company said the mine could generate revenue of $9.39 billion over the life of mine, producing profit after tax of $2.96 billion.
Cadence Minerals said the study indicated an annual average production after ramp-up of 5.28 million dry metric tonnes of iron concentrate per year.
The company also said it expects a maiden ore reserve of 198.5 million tonnes at 39% iron, demonstrating an 85% mineral resource conversion.
Chief Executive Officer Kiran Morzaria said: ‘This study, which we consider to be a definitive moment for our company, re-enforces Cadence’s analysis that the Amapa Project can be regenerated and restarted on a profitable basis over an initial 16-year mine life.’
‘The project benefits from integrated infrastructure under the owner’s control, a well-established processing route, low capital intensity and a quality product with an international reputation. Along with a skilled workforce, proximity to operational infrastructure and the potential to increase the mineral resource means that Amapa remains an incredibly attractive investment opportunity,’ he said.
Cadence Minerals shares were down 5.8% trading at 10.69 pence per share on Tuesday afternoon in London.
By Harvey Dorset, Alliance News reporter
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