Cadence Minerals’ Amapa Iron Ore Project has an update on the ongoing pre-feasibility study (PFS).
The Amapa Project located in the northeast of Brazil is a mine, processing plant, railway, and port in one vast integrated project.
Previously owned by Anglo American and Cliffs, the project produced around 6.1m tonnes of iron ore concentrate at its peak annually.
The Amapa Iron Ore Project is now owned in a ratio of 73:27 between Indo Sino and Cadence and is currently being pushed through development, into production as quickly as possible.
The PFS is commissioned based on generating 5.3m tonnes each year. Out of which, 4.9m tonnes is expected to be 65% iron ore concentrate with lower carbon footprints. At present, the price per dry tonne is $170.
In 2020, Cadence revised the Mineral Resource Estimate with an increase of 21%.
The current MRE includes an indicated mineral resource of 176.7m tonnes grading 39.7% Fe and an inferred mineral resource of 8.7m tonnes grading 36.9% Fe, both reported within an optimised pit shell and utilising a cut-off grade of 25% Fe.
According to previous assessments conducted by SRK Consulting, the project’s total capital expenditure will be around $168.8m, with an operational cost of around $24 per dry tonne.
Wardell Armstrong, a mining consultancy firm, has been appointed as the PFS manager. The company is focused on finding areas to reduce cost and capital expenditure associated with mining operations.
The PFS for the Amapa project is on schedule with progress in mining, beneficiation, infrastructure, energy, tailings storage facilities, logistics and sales and marketing.
Amapa Iron Ore Project
The Amapa Project began in 2007 mining 712000 tonnes of iron ore concentrate during its first production run.
With former owners, Anglo America and Cliffs, the project produced 6.1m tonnes of iron ore concentrate product.
Anglo American gained operating profits of $120m and $54m during 2011 and 2012.
Before the sale of Amapa, Anglo American valued the project at $866m.
Kiran Morzaria, Chief Executive Officer, Cadence Mineral stated, “the Amapa Mine has all the attributes of a significant iron ore deposit, and the upgraded MRE of 176.7m tonnes grading 39.7% Fe at the inferred category provides the Cadence board with great confidence in our investment decision.”
“As we see the world move towards decarbonisation and as manufacturers seek to minimise their carbon footprint, the planned production of a >65% Fe concentrate utilising predominantly renewable energy really does highlight the potential for the Amapa mine, rail and port infrastructure to deliver a lower emission iron ore product to our customers.”
“Completion of the PFS will be an important step towards unlocking the value of this deposit and I look forward to providing progress updates in the coming weeks.”
Cadence Minerals’ shares gained 2.8% to 18.1p following the update on the Amapa Project.