Cadence Minerals plc expects to save costs and could extend operations at the Amapá iron ore project in northeast Brazil.
FINANCING
Nearly complete optimisation studies will reduce plant capital expenditure and an additional processing flow sheet aims to increase product quality to 67% iron ore concentrate.
This contrasts with the previously proposed 62% and 65% product mix.
Installation licences over the Amapá mine, wholly owned port, railway, beneficiation plant and mine are on course for grant during 2024.
The joint venture project has received expressions of interest in equity financing in addition to the October 2023 memorandum of understanding with Tianjin Cement Industry Design & Research Institute Co., Ltd (TCIDR) for debt financing.
Cadence continues to invest in Amapá to a total of US$12.1m as at the end of September 2023 with the equity stake of 32.6%.
New investment figures will be published at the end of March.
Cadence and Indo Sino Pty Ltd own the JV project company Pedra Branca Alliance Pte. Ltd, which holds 100% equity of DEV Mineração S.A.
EXPANSION
The project could increase its 276.24Mt of measured, indicated and inferred mineral resources at 38.33% iron by exercising its right to explore and mine for iron ore on the Tucano gold mine’s adjacent concessions.
A further 143.5Mt at 36.77% of historical resource lie on Tucano’s licences, with the areas governed by various joint operating agreements.
Cadence said that during the mine’s operation, the previous owners identified four areas within the mine with a mineral potential of around 500Mt iron ore.
The company has requested the complete set of geological data, including drill data and assay results, to review the historic mineral resource as Tucano prepares to restart operations.
“I am delighted to report that the Amapa project has taken a substantial series of steps forward since we announced the MoU with TCIDR in October 2023,” added chief executive Kiran Morzaria.
“As we remain on schedule to secure the installation licences by the end of this year, we are seeing expressions of interest from potential partners to invest into the project equity finance element.
“Once completed, the recommissioned Amapá mine can restart production.”