The 100% owned Posse project is hosted within Brazil’s world famous Iron Quadrilateral in Minas Gerais State. Posse is located 30km from Belo Horizonte, a city acknowledged as the mining capital of Brazil and the capital of Minas Gerais state. With an experienced mining workforce amongst a population of over 2.3 million people, contract mine operators, excellent infrastructure (including an international airport) and over 100 pig iron smelters within less than 180km radius of the project, the infrastructure and access to the domestic steel market around the Posse project is excellent.
A total of 9 large steel mills and over a hundred smaller mills draw feed from the many mines that operate within the region. Iron ore and steel are also transported by rail to ports near Rio de Janeiro and Vitoria from where it is shipped throughout the world.
The project is based on the use of bulk open pit mining methods and a simple beneficiation plant treating up to 1Mtpa of iron ore for a mine life of 6-8 years. The initial 18 months to two years (Stage 1) production incorporates a dry processing plant, whereas the following 6 years (Stage 2) will require a wet beneficiation circuit- potentially including magnetic separation.
Coffey Mining (one of the top independent mining consulting groups in the world) has completed a Scoping Study (including a Pre-Feasibility study for the first 3 years production) for the Project and a separate JORC compliant resource estimate.
The Posse Project is composed of metamorphosed banded iron formation (BIF) referred to locally as Itabirite. The Itabirite has been folded and affected by thrust and shear zones associated with the Transamazonian event. The Posse Itabirite is composed of compact rich Itabirite (IRC), compact low grade Itabirite (IPC), friable rich Itabirite (IRF) and friable low grade Itabirite (IPF).
The IRC ore is mainly composed of a hematite vein- which will be targeted in Stage 1.
In October 2010, Crusader Resources completed the Stage 1 iron ore beneficiation plant at the Posse Iron Ore Project, and the company is now ready to begin production immediately, once final approvals from the Minas Gerais state environmental agency in Brazil have been received.
Crusader is working closely with the relevant government agencies to meet the requirements of the environmental license and is confident of starting production in the second half of 2011.
