Development of the Colomi South deposits on the south side of Sobradinho Lake is the priority with target production of 25Mtpa. The mine will produce a high grade magnetite-rich iron ore concentrate using standard beneficiation methods. Initial mine life is 20 years.
Low Strip ratio
The deposits are generally flat-lying and outcrop as high ridges at surface, resulting in a low strip ratio (Colomi South 1.01:1). Drill results have shown ore thickness of up to 100m at Colomi North and 150m at Colomi South, with many holes ending in mineralisation. These characteristics make the project amenable to an open cut mine
Competitive Operating Cost.
Low mining costs are supported by: access to plentiful water; favourable weather conditions; competitive power from the national grid, including nearby hydroelectric and wind power systems; potential for tax incentives; and local townships with labour availability.
The high grade hematite Tombador deposit located within Colomi South will produce a DSO lump product, presenting the opportunity for early cashflow during the ramp up phase of the project
Development of the Colomi North deposits on the northern side of Sobradinho Lake will comprise Stage Two of the project (>20 years @ 25Mtpa). This stage will utilise the Colomi South logistics and/or infrastructure options to the north.
The total 5Bt JORC resource provides for a 40+ year project life. The deposits remain open at depth, presenting further resource upside.