South American Ferro Metals Limited (ASX:SFZ) is the only ASX-listed pure play iron ore producer operating in Brazil. The Company owns 100% of the mineral rights and the property located in the heart of the Iron Ore Quadrilateral in Brazil, 55 kilometres from the city of Belo Horizonte in the state of Minas Gerais, Southern Brazil.
The Iron Ore Quadrilateral is a prolific iron ore mining area, and the Project is located proximate to established mining operations, iron and steel plants and existing infrastructure.
In November 2010, SAFM commenced ore production and is currently selling its product to local steel producers in Brazil.
The company is undertaking further drilling to confirm mineralised areas as JORC-compliant resources and to expand the exploration target base (ore body is open at depth). The geology is well understood and initial production of 1 million tonnes per year is planned, which will serve as a basis for future plant upgrades.
