Cadence Minerals PLC on Friday said it has laid the basis for pre-feasibility studies at the Amapa iron ore project in Brazil with the completion of a new mineral resource estimate through Dev Mineracao SA.

Cadence is a London-based early stage investment and development company focused on the mineral resource sector.

Dev holds the mining rights to the Amapa project, an integrated mine, beneficiation plant, railway and port in the northeast of Brazil, while Cadence, via a joint venture company, owns 27% of Dev.

The estimate was carried out in compliance with JORC Code 2012, which is the Australian code for the reporting of exploration results, mineral resources and ore reserves.

Results showed a ‘substantial’ increase in mineral resources to 276.2 million tonnes. They also showed new measured resources of 55.3 million tonnes.

Measured and indicated resources increased to 229.5 million tonnes. The inferred mineral resources increased to 46.8 million tonnes.

Cadence said the higher degree of certainty in the mineral resource estimate provides more funding options for the Amapa project.

The new measured resource and the overall increase in the mineral resource would provide ‘a sound basis for an initial 14-year mine life’, it added.

Chief Executive Officer Kiran Morzaria commented: ‘The main aim of our new mineral resource statement was to provide a sound basis for pre-feasibility studies. In particular, to convert a significant portion of the indicated mineral resource into the measured category. The results reported today have achieved this goal and more.’

Cadence shares were trading 1.6% higher at 9.60 pence each in London on Friday afternoon.

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