News of Brazil-focused miner Crusader Resources achieving its first iron ore sales has excited the market with its share price jumping more than 16 per cent today.
The miner has been producing ore since late last year when it was granted a licence to operate by the environment council in the Minas Gerais state of Brazil.
Since then 8,000 tonnes of ore and fines have been stockpiled with first sales being made today.
“Crusader is experiencing strong demand from domestic smelters with sales prices above budgeted forecasts,” the company said in a statement to the ASX.
It said revenue was expected to exceed expectations because of the higher than budgeted sales prices.
The company’s share price increased by 16.7 per cent following the news – reaching a high of 35 cents per share at market close today.
Production from the Posse iron ore project is planned to increase to 40,000 tonnes per annum in April and 50,000 tonnes in May.
Crusader currently has an application lodged for a full mining licence, which would enable it to produce at an annual rate of one million tonnes.
The West Perth based company also has three other mining projects in Brazil at various stages of exploration.
Managing director Rob Smakman said today’s sales from the Posse project moved the company from being an explorer to a mining company.
“An added bonus for Crusader is the higher than expected volumes of lump ore being produced, so we couldn’t have asked for a better start,” Mr Smakman said.
“Our focus now shifts to increasing production and delivering a consistently high quality product to the local market.”
