Cleveland Mining acquires Brazilian iron ore project

THE BOURSE WHISPERER: Cleveland Mining has its sights set on building a 5 million tonne per annum iron ore operation in northern Brazil.

The company’s ambitions arise from the recent signing of an Option Agreement over the Ferradura iron ore project.

Cleveland had a review of existing drilling information conducted by mining consulting group SRK, which it said confirmed the project’s potential to hold a mineral resource of several hundred million tonnes of hematite and magnetite mineralisation.

“The Ferradura project represents an outstanding acquisition for the company,” Cleveland Mining managing director David Mendelawitz said in the company’s announcement to the Australian Securities Exchange.

“Hematite and magnetite iron-ore mineralisation is abundant at Ferradura, along with the infrastructure and supportive government that is needed to build a robust operation.

“I believe that this is one of the world’s best undeveloped iron ore addresses due to the amount of iron mineralisation, a skilled labour force, and presence of power, road and port infrastructure, along with a government that actually encourages the development of projects.”

Cleveland said it had already commenced engineering studies at Ferradura and will start metallurgical testwork and a major drilling program in the coming months.

The company has provided numerous check samples of previously drilled core to a laboratory for size-fraction analysis and confirmation of grades.

“Within a few short months, we expect to have a significant JORC-compliant Resource for the previously drilled area,” Mendelawitz added.

“We will also begin to investigate many of the numerous exploration targets in the Ferradura tenements.”

Cleveland is busy in the land of the Samba with construction of it Premier gold mine nearing completion.

The company said it anticipates commissioning the plant at Premier within a month.