Crusader moves to iron ore producer in Brazil

THE DRILL SERGEANT: Crusader Resources (ASX: CAS) has commenced plant commissioning of direct shipping iron ore at the company’s 100 per cent-owned Posse iron ore project in Brazil, with first sales and revenue expected in March.

Crusader started construction work on access roads, weighbridge, stockpile areas and office infrastructure in December 2012, all of which is nearing completion.

The company has also stockpiled ore in readiness for processing, which it anticipates will be starting in two weeks’ time.

 

Product stockpile- Posse iron project. Source: Company announcement

 

Crusader said it has signed three sales letters of intent with domestic smelters, the demand from which is in excess of Posse’s projected production.

“The start of mining at Posse and the generation of our first revenue will transform Crusader,” Crusader Resources managing director Rob Smakman said in the company’s announcement to the Australian Securities Exchange.

“Plant commissioning is well underway with several minor issues identified.

“These are being rectified and present no impediment to start-up.

“The construction of the last few items necessary to start mining is progressing well and the drilling program underway will help ensure we continue to optimise our mine planning for the project.”

The Posse iron ore project is located 30km from Belo Horizonte in the “Iron Quadrilateral” region of Minas Gerais state, Brazil.

Crusader describes the project as being a low capital cost project, close to infrastructure and features simple logistics.

Posse contains an Indicated and Inferred Mineral Resource of 36 million tonnes at 43.5 per cent iron.

Crusader has now commenced a drilling program with the intention of better defining the high-grade, DSO haematite ore distribution within the resource.

The drilling will aim to expand the resource along strike and down dip.