ASX-listed explorer Crusader Resources has progressed towards full production rights at its newest mining venture, the Posse Iron Ore project, after receiving a full environmental licence for the Brazil-based project.
Lying 30km from Belo Horizonte in the country’s east, Posse Iron Ore has operated under a trial mining licence since opening in March which restricted throughput at the mine to 300,000 tonnes of ore per annum.
However, six weeks after the mine’s first production, Crusader was granted a combined preliminary and installation licence for environmental approval of its 100 per cent owned iron ore project by Brazil’s Minas Gerais State Environmental Council, COPAM, enabling it to apply for complete mining rights and ramp-up production to full capacity.
All key infrastructure requirements are completed and fully operational, including a weighbridge, exit ramp, and onsite sales and administrational offices.
Crusader managing director Rob Smakman said the license was a stepping stone towards the project’s future success.
“We are obviously delighted to have had the [preliminary licence] and [installation licence] granted, as it is the most important step towards us expanding Posse to its full potential,” he said.
“We have been really pleased with the sales of the high-quality product from the mine so far, and are excited by the potential to further grow production.” Posse is marketed as a producer of high-quality iron ore, for consumption purely within the domestic Brazilian steel industry. The mine has a mineral resource of 36 million tonnes of ore at 43.5 per cent iron.
While listed on the ASX, Crusader maintains a decisive mining focus within Brazilian territory, citing its interest in the vastly unexplored country’s high potential for the discovery of world-class mineral deposits.
Crusader holds more than 4400 square kilometres of exploration prospect in tenements across the country.