All Grade Mining has signed a letter of intent (LOI) to acquire a second iron ore mining project in Chile.
The property is located outside of the town of Chanyaral with identical geological landscape as the company's Salitrosa property, acquired in December 2011.
All Grade Mining, chief executive officer Gary Kouletas said, "We continue to seek out additional prospects in Chile and as the global demand for iron ore continues to rise, we have an opportunity to lock our footprint in a region that is known for tremendous amounts of iron ore production."
A preliminary geological study was performed on the property and based on the geo structure of the area and the region itself, the company believes that there is a larger deposit of iron ore on the property, well above the estimated reserves at Salitrosa.
The mineral appearing in cloaks and streaks on the surface is a mixture of Hematite, magnetite and surround rock mass.
The study also reported higher concentration of magnetite-Hematite in vertical depth, therefore indicating iron concentrate possibility of approximately 65%.