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SAFM eyes adjacent property

SAFM eyes adjacent property

Photo by Bloomberg

9th July 2014

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – Junior miner South American Ferro Metals (SAFM) has signed a memorandum of understanding (MoU) with the owners of a property adjacent to its Ponto Verde iron-ore project, in Brazil.

The MoU set out the fundamentals for negotiations around a possible agreement between the two parties that would allow SAFM to mine the orebody located on the eastern side of the tenement area, contiguous with the Ponto Verde mine.

SAFM MD Stephen Turner said on Wednesday that the MoU marked an important milestone for the company’s development, and the expectation was that SAFM would be able to extend the mineral resource.

The MoU would allow the ASX-listed company to use drill hole survey data from the adjacent property in order to build a new and enlarged block model for the proposed expansion of the Ponto Verde mine.

“In our view, the project is expected to have significant advantages for both SAFM and its neighbour by aiding the optimisation of the extraction of ore from the deposit which overlays both parties’ tenements,” Turner said.

SAFM was currently re-evaluating the overall scope of the current bankable feasibility study on Ponto Verde, in light of the additional information and with a view to enlarging the initial reserve for mining.

The Ponto Verde project currently has a resource of some 301.60-million tons, grading 40.65% iron, and produced 445 759 t of run-of-mine product during the three months to December, as well as 251 099 t of beneficiated product.

Edited by Creamer Media Reporter

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