Carnavale acquires two further projects in Brazil

Carnavale Resources Ltd has signed an agreement with Puma Metals Mineracao...

  Carnavale Resources Ltd has signed an agreement with Puma Metals Mineracao Ltda to acquire additional iron ore projects in Brazil, South America.Under the terms of the new agreement, Carnavale will pay US$1.105m to Puma based on staged payments up to a period of 36 months from the date of the agreement. A further US$1.5m is due after the calculation of JORC standard mineable reserves and US$1.4m is due upon the commencement of mining activities. The Marabá project is located on the Rio Apa Block in southwest portion of Mato Grosso do Sul State (MS). The property lies in the municipality of Porto Murtinho, approximately 325km southwest of the state capital of Campo Grande, and about 1,200km southwest from the national capital Brasilia and can be accessed from a number of nearby towns. The Maraba Project comprises eight exploration applications and covers approximately 160sqkm, which is 100% owned by Puma. The property is surrounded on the eastern and western sides by two big blocks held by MMX Mineração Ltda, who is exploring the area for iron. MMX is a Brazilian Iron Ore company that is developing multiple world class iron ore projects in Brazil. The Pancada Iron Project is located in Amapá State, in the north of Brazil. The Project is located 88km west of Macapá (State Capital) and 78km from Santana Port. The project can be accessed by a federal highway which passes 25km southeast of the property and secondary roads provide a direct access to the project area. The Pancada Project comprises one exploration application covering approximately 80sqkm, which is 100% owned by Puma. The property lies along a prominent NW structurally-controlled corridor which hosts the Paleoproterozoic Vila Nova Greenstone Belt sequence. Significant iron deposits such as the Bacabal Deposit (Eldorado Gold Corp.) and the Amapá Deposit (MMX Mineração e Metalicos SA) are located within this structural domain. Both deposits contain high iron grades, in general, greater than 60% iron. The project was delineated based on a prominent regional air-magnetic trend which extends for more than 15km along a NW direction. Approximately 50% of this trend is located within the property. According to the company, the regional magnetic signature suggests that the Paleoproterozoic greenstone sequence can be extended into the property, providing the necessary elements to classify the property as a high priority target. In addition to the iron potential, there may be potential for other commodities such as; gold, base metals and cromium.