NEW YORK, May 23, 2012 /PRNewswire-Asia/ -- China Digital Venture Corporation (OTCBB: CDVV; "China Digital" or the "Company") is pleased to announce that it has signed a memorandum of understanding between the shareholder group of Sao Camilo Mineradora Ltda. Group ("Sao Camilo") to acquire a strategic equity interest in Sao Camilo.
Sao Camilo was founded in 2006 with the objective of developing an iron ore processing project -- The Sao Camilo Project -- to produce and export pellet feeds from its mining resources located nearby the city of Sao Raimundo Nonato, south of Piaui State, in the northeast region of Brazil.
"Following our recent investment in Arnevut Resources (U.S. gold exploration and mining company), our interests in the Sao Camilo Project will definitely be an important step to position ourselves as a unique investment platform into attractive resource projects worldwide," stated Robert Price, China Digital's Director & CEO. "We are already in discussion with strategic companies that can help us substantiate the value of this property and bring the project to the next level."
The Sao Camilo Project
- Greenfield open pit mining project in the northeast of Brazil, focused on iron ore and manganese
- 412 mm m3 of iron ore reserves with a 30% Fe content and 50 k tons of manganese
- Iron ore with very low impurities that can be easily concentrated to over 62% iron grade of sinter feed
- Manganese associated with the ore, increase value of the iron ore as it will require less manganese to produce steel
- Infrastructure availability - water, electricity, new railroad (construction in progress), labor, ports
- Incentives by both federal and local government and low cost financing available by the Brazilian Development Bank for the projects in the region.
Iron Ore: The iron ore is represented by banded iron formations interspersed with small bands of ferruginous quartzite. The ore body is a continuous, well defined, with length of nearly five kilometers, and layers with thickness ranging from 50m to 120m. The characteristics of the iron ore deposits, with medial magnetism and with a typical Itabirite banding, are comparable to major deposits of iron ore in Brazil, especially the ones found in the central-south areas of Bahia and in the areas in north of Minas Gerais. In such regions, similar deposits are in advanced phases to start mining. The iron ore consists mainly of minerals such as martite, magnetite, ghoetite, quartz, and with Fe content ranging from 21% to 35%, with an aggregate blend resulting on an average content of 30% for the total deposit. Technical analysis presented highly satisfactory results, indicating that the ore is consisted of released silica. In addition, the iron ore presented extremely low levels of impurities such as alumina and phosphorous.
Manganese Ore: The manganese ore occurs within the iron ore body in form of surface concentrations, which has its origin connected to the action of supergene weathering agents, alongside the influence of topography. Mineralogical analysis shows that the ore consists essentially of criptomelano and pyrolusite and its manganese content ranges from 30 ~ 57%, and an average density of 3.9 t/cubic meter. The manganese ores are represented by tabular bodies of proto ore silicate, the primary ore, covered by colluvial deposits of high grade supergene ore.
To date, Sao Camilo has acquired two farms totaling 690 hectares, which cover most of the mining rights, including the ideal location for the construction of plant facilities, piling stocks and tailings dam. In addition to the acquired properties, Sao Camilo has filed a requirement for servitude areas in order to fulfill the applicable legislation, which determines that industrial works and the plant facilities are to be comprised within the servitude areas allowed for the project. These areas will be used for the implementation of the final pit, processing plant, roads, accesses, offices, workshops, health and other support facilities, waste disposal, barren, and structures for environment protection, among other uses.
Since it started its exploratory activities in mid-2005, Sao Camilo has developed several research activities aimed at investigating the quality and the volume of the iron and manganese ores. Over the next 12 ~ 18 month period, the project will commence in-depth research conducted as per NI 43-101 or JORC standards to obtain an internationally certified reserve.
About China Digital Venture Corporation
China Digital Venture Corporation (OTCBB: CDVV), is a publicly traded U.S. based junior exploration and mining company headquartered in Rockille, Maryland. The Company is currently pursuing opportunities for several acquisition targets focusing on operational plans for current projects across the trans-pacific regions. China Digital's commitment to asset growth and increased shareholder value will be sustained by the development of highly prospective projects, accelerated exploration activities and the acquisition of viable resources.
Robert M. Price, Director
SOURCE China Digital Venture Corporation