Porto Grande

Highlights

1,200km² greenfields iron ore project
Excellent first-phase exploration results
Drilling program now underway
Adjacent to projects held by Anglo American, Eldorado, Severstal, Beadell and Cliffs Natural Resources
Excellent infrastructure
Existing team to conduct exploration

Profile

Cleveland’s Porto Grande Project is bounded by iron ore projects held by Anglo American and Cliffs Natural Resources, Severstal and Eldorado, and is located between Beadell Resources Ltd’s (ASX:BDR) Tucano and Tartaruga projects.

Outcropping hematite and massive magnetite mineralisation has returned grades greater than 60% throughout a 5km² area during preliminary geological investigation. The Company has mobilised two drills to the project and drilling is underway.

Drilling is underway at Porto Grande

Infrastructure in the area is excellent. The site is approximately 5km from sealed roads, 25km from a railway, and around 100km from the port of Macapa. The town of Ferreira Gomes is 20km away and a hydro-electrical power facility is located on the tenement’s southern boundary.

Cleveland’s management team has solid experience in iron ore exploration and production, with Mr Mendelawitz and Mr Williams holding key positions at Fortescue Metals Group Ltd. from grass-roots exploration through to project construction, ramp up, and into full scale production.

The vendor of the Porto Grande project will join the Company to drive an established team. The team has experience conducting exploration programs in the area and the vendor has personally supervised the construction of four iron ore mills in Brazil. This team will form the basis of an entirely discrete Iron Ore Division, comprised of people not associated with Cleveland’s gold and copper projects, with the exception of the Board of Directors.

An Emerging Iron Ore Province

Commercial mining is relatively new in Amampa; however, the first mining companies working in the state appear to be progressing very well. Anglo American produced approximately four million tonnes of iron ore within the region last year and has brokered an iron ore off-take agreement with ASX-listed Beadell Resources, who have themselves delineated a multi-million ounce gold resource.

Further multinational miners have moved into Amapa in the last 3 years. Russian steel manufacturing goliath, Severstal, has announced a production target of 10 - 30Mtpa at one property neighbouring Cleveland and Zamin Ferrous are mining ore on another. Cleveland's southern tenements border Eldorado Resources' Vila Nova mine. The below map provides an approximate indication of their relative locations*.

*Map produced by Cleveland Mining from Brazilian Department of Mines information in October 2011. All efforts have been made to produce an accurate illustration of relative landholdings; however, the Company cannot guarantee the accuracy of the map.