JUNIOR exploration company, Republic Gold (RAU) has signed a Letter of Intent with the Bolivian government’s Department of Santa Cruz to work jointly towards exploration at the El Mutun iron ore project.
“El Mutun is a significant project on Bolivia’s border with one of the world’s fastest growing economies, Brazil. The LOI presents a significant opportunity for Republic and gives us the platform to build a truly world-class iron ore asset base,” managing director John Kelly says.
The Bolivian government believes El Mutun has the potential to host a target resource of 40 billion tonnes of iron ore grading at 50% iron.
According to RAU the El Muntun iron ore province includes the 2Mtpa Corumba iron ore mine which was previously owned by Rio Tinto.
RAU has followed the lead of Indian company, Jindal Iron and Steel who already has a $2 billion contract with the Bolivian government to develop 50% of the project.
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