With an upfront payment of just $30,000, Radar has until January 17, 2014 to complete due diligence on the project which is consistent with a focus on low capex, early cash flow iron ore projects.
The Uruara iron ore deposit in Para State could potentially start mining within 18-24 months.
Infrastructure is in place and accessible with roads in place for crushed ore to be trucked to a deep water port on the Amazon River for direct loading to Panamax vessels or via barge.
Production costs are expected to be low with surplus cash flow used to provide capital for operational expansion after the second year.
The Uruara Project comprises 1 exploration license of approximately 10,000 hectares with a binding right to acquire 6 adjacent applications of 58,000 hectares
Mapping surface sampling and trenching has been undertaken to date in which extensive areas of massive high grade hematite and magnetite mineralisation was identified at surface. No drilling has been completed as yet.
Three main corridors have been identified to date forming zones 250 metres to 400 metres in width and up to 2.5 kilometres in length.
The mineralisation commences at surface, extends to at least 4 metres depth. More mapping is required to track the zones under forest cover.
Previous sample results suggest grades consistently above 60% iron with low levels of impurities. A further 11 assay results are expected in the coming week.
An Exploration Target of 20 million tonnes and 40 million tonnes at 58% to 65% iron has been estimated for the project.
The acquisition is subject to Radar completing due diligence by 17 January 2014. The company will then start funding exploration and project development to secure a 50% interest in the project.
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