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Cabral Resources Limited (CBS)
is a publicly listed company on the Australian Securities Exchange (ASX).
Iron ore tenement portfolio is located in Brazil’s emerging iron ore region in the state of Bahia.
Cabral’s Sincorá Area covers 1,195km² and has significant high grade DSO hematite iron ore potential with very low contaminants.
The Brumado Complex hosts magnetite iron ore potential which is currently afforded less exploration priority than the Sincorá Area.
Cabral is fortunate to have dual infrastructure solutions for the export of future iron ore products to the international market:
- The existing, operating FCA rail line and Port of Aratu; and/or
- The FIOL rail line currently under construction, and proposed Porto Sul where Cabral has a signed Protocol of Intentions for up to 15mtpa of its future iron ore products.
Cabral has a first class Chinese contact network with the ability to source top tier Chinese partners, legally binding offtake arrangements, legally binding project funding and the full suite of infrastructure solutions for the accelerated development of Cabral’s portfolio.
50% equity interest in unique JV company, CRMSC (Australia) Pty Limited, with large China state owned enterprise, China Railway Materials Commercial Corporation (“CRM”).
Cabral to aggressively pursue its objective of becoming an iron ore producer by 2016.
- Cabral has identified and pegged a broad prospective area located 90km NW of Brumado Town, in Bahia State, Brazil
- The Sincorá Area of mineral tenements has significant high grade DSO hematite iron ore occurrences
- Initial surface sample assay results confirm high grade hematite iron mineralization (+65% Fe) with very low contaminants
- Cabral’s exploration team has set an immediate assessment programme in order to systematically evaluate the entire ground holding
- It covers a vast area of over 1,195km² and a low acquisition cost adds significant and immediate value for Cabral shareholders
- The Sincorá Area enjoys a privileged location to critical infrastructure with the existing and operating FCA rail line passing inside of the Sincorá Area and the new FIOL rail line scheduled to be located nearby
- Logistics permit potential dual international export routes through either the existing Port of Aratu or the proposed Port Sul development
- The Sincorá Area perfectly matches Cabral’s exploration focus towards low capital intensive, early cash flow high grade DSO hematite and itabirite orebodies
The Brumado Complex
- Iron ore tenement portfolio is located in Brazil’s emerging iron ore region in the state of Bahia.
- Full Government funding for construction of a new FIOL Rail Line has already commenced and is designed to pass directly through Cabral’s tenement portfolio.
- Rail section from the new port, Porto Sul, north of Ilhéus past the Cabral tenements location to Caetité is being constructed and expected to be operational by 2016. The new port 25kms north of Ilhéus is also expected to be completed by 2016.
- Porto Sul will be a new dedicated, open access deep water port to be built north of Ilhéus in the State of Bahia. Common user areas are expected to be funded by the State Government of Bahia with mining companies likely to be granted the right to build own private berths through one on one negotiation.
- Potential for tonnages of high quality, medium to coarse grained magnetite iron ore within the existing Cabral tenement portfolio.
- DSO hematite potential identified within Cabral’s tenement portfolio and also on at least one other regional target area.
- Cabral has an existing, high quality Chinese contact network which provides the ability to source top tier Chinese partners, legally binding offtake arrangements, legally binding project funding and the full suite of infrastructure solutions for the accelerated development of Cabral’s portfolio. In addition, Cabral also has a 50% equity interest in unique joint venture company, CRMSC (Australia) Pty Limited, with large China state owned enterprise, China Rilway Materials Commercial Corporation.
Dual Infrastructure Solutions
Fiol Rail Line and Porto Sul
Cabral has made very significant advancements into its long term infrastructure solutions through the Protocol of Intentions (“POI”) signed with Bahia State and State Treasury back in March 2012. This POI contemplates access and capacity allocations for up to 15.0 million tonnes of annual iron ore production capacity on publicly-funded FIOL Rail Line and the proposed Porto Sul port development.
Constructive and meaningful dialogues continue with the relevant authorities and other stakeholders in relation to Cabral’s detailed requirements for both the FIOL Rail Line and the Porto Sul port development which are both scheduled for completion in 2016.
The POI entered into by Cabral and the timetable for infrastructure completion dovetails neatly with any long term infrastructure requirements for the Sincorá Area and any future development and production plans.
Existing, Operating FCA Rail Line and Port of Aratu
In the interim period before 2016, whilst the FIOL Rail Line and Porto Sul infrastructure is being completed, Cabral has potential alternative export infrastructure avenues it can pursue for lesser quantities of iron ore production to generate early cash flows.
The potential use of the existing, operating FCA Rail Line which lies within the Sincorá Area.
The FCA Rail Line connects to the existing, operating Port of Aratu, Bahia State (near Salvador). The rail distance from the Sincorá Area to the Port of Aratu is approximately 360 km.
Both the FCA Rail Line and Port of Aratu are believed to have excess capacity that may be available to Cabral to meet its future development and production plans.
Cabral Resources Limited
Suite 2, Level 5
20 Bond Street
+61 2 9232 0211
Fax: +61 2 9232 0233
The General Overview, Services, Products and Projects information for this profile was last edited on 04 Feb 2016.