Acquires Major Iron Ore Project in Brazil
Perth, June 8, 2012 AEST (ABN Newswire) - ASX-listed Cleveland Mining (
ASX:CDG) aims to build a 5 million tonne per annum iron ore operation in northern Brazil after signing an Option Agreement over the Ferradura iron ore project. A review of existing drilling information by mining consulting group SRK confirmed the project's potential to hold a mineral resource of several hundred million tonnes of hematite and magnetite mineralisation.
Cleveland Mining almost certainly has the firepower to make a success of the new project. The company's Board of Directors is comprised of former founding Fortescue Metals Group executives, including Deputy CEO Russell Scrimshaw, Head of Business Improvement David Mendelawitz and Head of Mining Jim Williams. Cleveland's Chairman, Donald Bailey, at one time headed Rio Tinto's Mining Department for all of South America before building and selling LionOre for around six billion dollars.
Cleveland Mining Managing Director, David Mendelawitz, said that the Ferradura project represents an outstanding acquisition for the Company.
"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," said Mr Mendelawitz
"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 has already commenced engineering studies at Ferradura and will start metallurgical testwork and a major drilling program in the next months. Check samples from previously drilled core have been sent 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. We will also begin to investigate many of the numerous exploration targets in the Ferradura tenements," said Mr Mendelawitz.
Cleveland is almost finished construction of the Premier Gold Mine in Brazil and expects to begin commissioning of the plant within a month.
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About Cleveland Mining Co Ltd
Cleveland Mining Company Ltd (ASX:CDG) is an Australian managed, ASX listed minerals company squarely focused on developing projects into mines. The company's management team have a track record for building successful projects from the ground up, providing Cleveland with the expertise to secure and build robust projects. Mining and production are underway at the Premier Gold Mine located in Crixas, in central Brazil. The company is also working to expand production developing the Lavra prospect, within the O Capitao Project, less than 10km away. Cleveland has a different approach to project selection with project economics driving target selection. Projects are chosen according to their likelihood of generating returns at the bottom of the economic cycle.
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