Balcatta-based gold and copper explorer Carnavale Resources Ltd will acquire the mineral rights to a Brazilian iron ore tenement owned by Brasgeo - Geologia e Mineracao Ltda for around $1.2 million over five years, the company announced today.
Balcatta-based gold and copper explorer Carnavale Resources Ltd will acquire the mineral rights to a Brazilian iron ore tenement owned by Brasgeo - Geologia e Mineracao Ltda for around $1.2 million over five years, the company announced today.
The news comes three days after the company announced a $1.75 million capital raising to fund exploration on another two Brazilian iron ore projects the company had acquired.
The full text of a company announcement is pasted below
Newly listed Australian based resources company Carnavale Resources Limited ("Carnavale") has signed an agreement with Brasgeo - Geologia e Mineracao Ltda ("Brasgeo") for the assignment of 100% of the Mineral Rights in the Três Cores Iron Ore Project, in the State of Mato Grosso in Brazil, South America.
This will make the Três Cores Iron Ore Project Carnavale's third iron ore project in Brazil, pending the successful completion of technical and legal due diligence for the Parmegiana and Ilha Redonda iron ore projects announced by the company earlier this week.
About the Três Cores Iron Ore Project
The Tres Cores Iron Ore project has a total combined area of 30,000 hectares, all of which are under application. The project is located approximately 500 km from the major Carajás Iron Province and can be accessed from a number of nearby towns. The area has several airstrips and the associated infrastructure of large regional towns.
The Três Cores Iron Ore project was identified based on an airborne magnetic survey carried out by a major company in 2000. The anomaly is clearly defined on the analytical signal image (see figure 1). It has a folded geometry with an axis along of a 110° direction. The northern flank is approximately 29 kilometres long and the southern arm is 32 kilometres long. The southern flank
and the nose of the aeromagnetic structure occur in a flat region. The northern limb presents a more prominent relief.
A brief regional reconnaissance program was conducted in March 2007. The Três Cores anomaly was crossed along seven profiles. Three of them on the southern flank, one on the nose and another three on the northern limb.
The source of the anomaly was identified in one of these profiles and is represented by a typical BIF striking 290º and cropping out in a small elongated hill. The iron formation is sub-vertical and is composed of alternating bands of quartz and magnetite-martite (see figure 2). The BIF is associated with oxidized and banded siltstone and fine grained arenite.
The field reconnaissance campaign confirmed that the Três Cores Aeromagnetic Target is associated with BIFs. The size and the intensity of the aeromagnetic anomaly represents a strong target for a large Fe deposit. The fact that the topographic relief is very flat explains why the BIF unit is not very exposed and consequently why the area was not targeted before by other explorers.
Proposed Exploration programme
Carnavale proposes to undertake a detailed mapping and rock-chip sampling program and to conduct a preliminary ground magnetic survey in order to model the top and the geometry of the target unit. Depending on results achieved, a follow-up trenching and/or drilling program will be undertaken.
Terms of the Agreement
The major terms of the Agreement are as follows:
- Carnavale has paid USD$10,000 upon signing the agreement, after confirmation of the priority status of the Applications;
- Carnavale will pay USD$20,000, 4 months after signing this agreement;
- Carnavale will pay USD$100,000, 12 months after signing this agreement;
- Carnavale will pay USD$120,000, 24 months after signing this agreement;
- Carnavale will pay USD$150,000, 36 months after signing this agreement;
- Carnavale will pay USD$200,000, 48 months after signing this agreement;
- Carnavale will pay USD$400,000, 60 months after signing this agreement;
Additionally, Carnavale shall pay Brasgeo a royalty of 1% net smelter return.
At its sole discretion Carnavale may end this agreement at any time. Thereafter, Carnavale shall have no further obligations under this Agreement and full ownership of the mineral rights in the Project will revert to Brasgeo.
