Cabral Resources (CBS)

Shares / Stock Code

CBS

Stock Exchange / Sharemarket

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Cabral Resources (CBS) is a resource company focusing on mining exploration in Australia and South America. CBS also provides legal and finance professionals focused on the acquisition and development of resource assets in South America. Cabral Resources was listed on the Australian Securities Exchange (ASX) in 22 June 1995.

Cabral is a Brazilian focused resources company seeking to become a significant iron ore producer in the State of Bahia. With experienced management and the ability to leverage off its quality relationships and global contact network, it is well placed to become a producer by 2015.

Bahia, Brazil Project
Iron ore tenement portfolio is located in Brazil’s emerging iron ore region in the state of Bahia.
Full Government funding for construction of a new East-West Rail line has already commenced and is designed to pass directly through Cabral’s tenement portfolio.

Rail section from the new port north of Ilheus past the Cabral tenements location to Caetité is being constructed and expected to be operational by July 2012 according to the Brazilian Government’s timetable.VALEC Engenharia, Construções e Ferrovias S.A. (“VALEC”) is coordinating the construction process.

A new dedicated, open access deep water port is proposed to be built north of Ilheus in the State of Bahia. Common user areas are expected to be funded by the State Government of Bahia with mining companies likely to be granted the right to build own private berths through one on one negotiation.

Initial assessment indicates potential target tonnages of up to 644Mt of high quality, medium to coarse grained magnetite iron ore within the existing Cabral tenement portfolio. DSO hematite potential identified within Cabral’s tenement portfolio and also on at least one other regional target area. Cabral has already identified additional areas for acquisition and consolidation to grow its regional portfolio target to over 1.0 billion tonnes of beneficiable magnetite iron ore.

Cabral has an existing, high quality Chinese contact network which provides the ability to source top tier Chinese partners, legally binding offtake arrangements, legally binding project funding and the full suite of infrastructure solutions for the accelerated development of Cabral’s portfolio. In addition, Cabral also has a 50% equity interest in unique joint venture company, CRMSC (Australia) Pty Limited, with large China state owned enterprise, China Railway Materials Commercial Corporation. Cabral to aggressively pursue its objective of becoming a 4.0-10.0Mtpa iron ore concentrate producer by 2015.

Northern Yeelirrie, WA Project
Potential Uranium Tenement Area At Northern Yeelirrie - Cabral Resources Limited (ASX:CBS) holds, through a wholly-owned subsidiary, three (3) exploration tenements with the Western Australian Department of Mines and Petroleum which are considered prospective for uranium, covering approximately 470km2 located in the northern Yeelirrie region of Westen Australia.

The tenement area is located within a province of calcrete-hosted uranium deposits comprising Yeelirrie (BHPBilliton Limited), Lake Maitland (Mega Uranium Ltd), Lake Way-Centipede (Toro Energy Limited), Thatcher Soak (Uranex NL) and Dawson Hinkler Well (U3O8 Limited). Uranium in the region is hosted within surficial calcrete-style deposits in Tertiary age fluviatile and playa lake sediments. Uranium mineralisation occurs in the form of carnotite (a potassium-uranium vanadate) in calcrete, clay, sand and silt lithologies. Reported resources within calcrete-hosted uranium deposits located within the province have a combined endowment of over 70 million pounds (Mlbs) of uranium oxide and include Lake Maitland, Lake Way-Centipede, Thatcher Soak and Dawson Hinkler Well. The most significant target, Yeelirrie, does not have a reported resource published at this time.

Cabral’s granted exploration tenements are situated directly north of and adjacent to BHPBilliton’s reactivated Yeelirrie Uranium Project, currently Australia’s second largest undeveloped uranium target.

Initial due diligence and exploration reconnaissance work indicates the potential for one or two of the palaeo-channels that feed into the Yeelirrie palaeo-channel to originate in the Cabral tenement area. Cabral believes that no significant historical uranium exploration work has been undertaken on the tenement area.

The development of calcrete-hosted secondary uranium mineralisation is predicated on the basis of a uraniferous source area, be it localised primary uranium occurrences in the headwaters of the palaeo-drainage system or broad areas of weakly radioactive granites dispersed throughout the catchment area. The drainages themselves generally appear to be of Tertiary to Quaternary age, however there is evidence to suggest that palaeodrainages developed on the Yilgarn Craton may have been active as far back as the Cretaceous. The relatively young age of the mineralised channels is largely a function of carnotite solubility and channel preservation. Follow up exploration work is required across the tenement area to better understand the prospectivity of the area for uranium.

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