Cadence provides Amapa Iron Ore Project PFS update

Amapa is a substantial integrated mine, beneficiation plant, railway and port in the northeast of Brazil. It was previously owned by Anglo American (70%) and Cliffs (30%) and at its peak, produced up to 6.1 million tpy of iron ore concentrate.

Highlights

• Cadence have now acquired 27% of the Amapa Project, which is being fast-tracked through development and eventually to production.
• PFS commissioning based on producing 5.3 million tpy, 4.9 million tpy is anticipated to be a 65% iron ore concentrate.
• Wardell Armstrong International Ltd, a leading, globally recognised mining consultancy, has been appointed the PFS Manager of the Amapa Project.
• Work is on track to deliver a high-quality PFS for the Amapa Project.

Cadence CEO, Kiran Morzaria, commented: “The Amapa Mine has all the attributes of a significant iron ore deposit, and the upgraded mineral resource estimate of 176.7 million t grading 39.7% iron (Fe) at the inferred category provides the Cadence board with great confidence in our investment decision.”

“As we see the world move towards decarbonisation and as manufacturers seek to minimise their carbon footprint, the planned production of a >65% Fe concentrate utlising predominantly renewable energy really does highlight the potential for the Amapa mine, rail and port infrastructure to deliver a lower emission iron ore product to our customers.

“Completion of the PFS will be an important step towards unlocking the value of this deposit and I look forward to providing progress updates in the coming weeks.”

Amapa PFS and Wardell Armstrong appointment

The PFS began on the Amapa Project in late 2021 and is based on producing 5.3 million t of iron ore concentrate per annum. We expect to produce 4.9 million tpy of the higher quality, lower carbon footprint 65% iron ore concentrate which, as of the date of this announcement, trades at approximately US$170/dry t.

The PFS contemplates refurbishing and rehabilitating the existing port, rail and plant with modifications being made to the beneficiation plant to achieve a larger portion of 65% iron concentrate (4.9 million t). In addition, an investigation is underway into optimisation opportunities and potential cost savings in the transportation of the iron ore concentrate, particularly in the areas of transhipment and movement of ore from the mine to the rail loadout.

Previous studies carried out by SRK consulting based on 2015 site visits and updated in 2019 to reflect changes in inflation and foreign exchange rates estimated the total level of capital expenditure for the project of approximately US$168.8 million (scoping study level accuracy). The same study estimated operating expenditure of approximately US$24/dry t delivered free onboard from Amapa's port in Santana, Brazil.

All the other areas within the PFS are progressing as expected, with work underway on all critical areas, including mining, beneficiation, infrastructure, energy, tailings storage facilities, logistics and sales and marketing.

Cadence is also pleased to announce that it has appointed Wardell Armstrong International Ltd (WAI) as PFS manager for the Amapa Project. WAI is a leading, globally recognised mining consultancy with a track record of conducting all levels of technical study required on projects that have successfully been financed and developed into full mining operations.

WAI are working closely with all our consultants to deliver the lowest cost and capital expenditure possible, which represent huge advantages for any mining operation, particularly for construction and project financing.

Read the article online at: https://www.globalminingreview.com/exploration-development/23032022/cadence-provides-amapa-iron-ore-project-pfs-update/