South American Ferro Metals Limited (ASX: SFZ or "SAFM") holds a unique position as the only ASX-listed pure play iron ore producer in Brazil.
The Company owns 100% of the Ponto Verde iron ore mine, located in the heart of the Iron Ore Quadrilateral, 55 kilometres from Belo Horizonte in Minas Gerais state. The Iron Ore Quadrilateral is a prolific iron ore mining area that produces almost two thirds of Brazil's iron ore. Ponto Verde is located close to established mining operations, pig iron and steel plants and transport infrastructure.
SAFM currently sells three iron products from Ponto Verde: Lump, Sinter and Concentrate. These are sold to local steel producers in Brazil, with opportunities to export the product also being evaluated.
SAFM has a JORC Resource at Ponto Verde of 301.06 million tonnes (Mt) at 40.65% Fe (which includes a Measured Resource of 72.75Mt at 41.06% Fe, an Indicated Resource of 101.96Mt at 40.68% Fe and an Inferred Resource of 126.34Mt at 40.45% Fe).
In February 2012, SAFM announced that it had approved a Definitive Feasibility Study ("DFS") to expand Ponto Verde to a capacity of 8 Mtpa ROM throughput, from its current 1.5 Mtpa licensed capacity. This work is progressing as planned and the expansion remains on track for completion by the end of FY2015.