The AIM-traded firm reported a “substantial” increase in total measured, indicated and inferred mineral resources, to 276.24 million tonnes grading 38.33% iron.
New measured resource totalled 55.33 million tonnes grading 39.26% iron, while measured and indicated resource increased to 229.48 million tonnes at 38.76% iron, from 176.7 million tonnes at 39.75% iron, reported within an optimised pit shell and using a cut-off grade of 25% iron.
The inferred mineral resource increased to 46.76 million tonnes at 36.20% iron, from 8.7 million tonnes at 36.9% iron, reported within an optimised pit shell and using a cut-off grade of 25% iron.
“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,” said Cadence chief executive officer Kiran Morzaria.
“The results reported today have achieved this goal and more - the results clearly indicate the robustness and consistency of the Amapá resource.”
Morzaria said that as the company moved closer to the next stage of development, the higher degree of certainty in its mineral resource estimate provided more funding options for the project.
“The new measured resource and the overall increase in the mineral resource provides a sound basis for an initial 15-year mine life, with the potential to expand this further by upgrading the 46.76 million tonnes of inferred resources.”
At 1042 BST, shares in Cadence Minerals were up 4.23% at 9.85p.
Reporting by Josh White at Sharecast.com.