PERTH (miningweekly.com) – ASX-listed junior Radar Iron has withdrawn from the Uruara iron-ore project, in Brazil, despite uncovering promising results during a recent diamond drilling and trench sampling campaign.
Radar had entered into a farm-in agreement with a private Brazilian company to obtain a 50% interest in the Uruara project, by spending A$1.5-million on exploration within an 18-month period.
Radar said on Tuesday that a small diamond drilling and trench sampling programme in November and December of last year, in which eight holes were drilled, had delivered encouraging results.
However, Radar has decided to withdraw from the farm-in process, given the current iron-ore market conditions.
“Despite the encouraging results from the drilling and the potential for low-cost extraction and transport of the mineralisation, given the depressed state of the iron-ore market and obligatory future option fees payments under the farm-in agreement, Radar has decided not to proceed with the farm-in process on the Uruara project,” MD Jonathan Lea said.
He noted that the company would have no ongoing liabilities for the project.