Radar Iron (ASX:RAD) has finalised its due diligence for the acquisition of a 50% interest in the Uruara DSO iron project in Brazil.
A detailed joint venture agreement is to be signed shortly, followed by commencement of ground exploration, with drilling expected next quarter.
Uruara covers 68,000 hectares adjacent to the Amazon River, and boasts rock chips assaying up to 66% iron.
Radar paid an option fee of $30,000 to consider the acquisition, and will now fund exploration to earn its 50% interest.
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, resulting in a low risk profile for Radar.
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.
An exploration target of 20 million tonnes and 40 million tonnes at 58% to 65% iron has been estimated for the project.
Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.