Name of the Project
Tombador iron-ore project.

Location
Municipality of Sento Sé, in northern Bahia State, Brazil.

Project Owner/s
Tombador Iron Mineração, a subsidiary Tombador Iron.

Project Description
A prefeasibility study (PFS) has confirmed the potential for the project to produce a high-grade product and generate strong returns over its life-of-mine.

The PFS is based on an independent Joint Ore Reserves Committee 2012-compliant mineral resource of only the high-grade hematite within the Tombador tenement comprising 8.92-million tonnes at 64.4% iron of high-grade hematite using a cutoff grade of 55% iron.

The PFS shows a maiden ore reserve of 5.59-million tonnes at 65.5% iron, which underpins 100% of the forecast production of 1.2-million tonnes a year of direct shipping ore over a five-year mine life.

The proposed mining operation consists of a single openpit mine using conventional drill-blast, excavator-truck mining methods.

Ore will be processed through a three-stage crushing and screening plant to produce a direct shipping ore lump (+6.3 mm/-31.5 mm) and fines (-6.3 mm) product.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a payback period of 1.2 years from initial investment.

Capital Expenditure
Preproduction capital costs are estimated at A$7.9-million.

Planned Start/End Date
None stated.

Latest Developments
None stated.

Key Contracts, Suppliers and Consultants
GE21 Consultoria Mineral (mineral resources and reserves estimates).

Contact Details for Project Information
Tombador Iron, tel +61 8 6382 1805 or email info@tombadoriron.com.