All Grade Mining /quotes/zigman/7463404/quotes/nls/hyii HYII +9.44% , a development-stage company focused on the extraction of iron ore, today announced that the Company has signed a Letter of Intent (LOI) to acquire a second iron ore mining project located adjacent to the Company's Salitrosa Project in Chile.

 

The iron ore property is located outside of the town of Chañaral with identical geological landscape as the Salitrosa property. There are several small and medium mines in the area of the prospectus by individuals and small companies that currently exploit the iron ore in small amounts. Preliminary geological study was performed on the property and based on the geo structure of the area and the region itself, the Company believes there is a substantially larger deposit of iron ore on the property well above the estimated reserves on the Salitrosa property. The mineral appearing in cloaks and streaks on the surface is a mixture of Hematite, magnetite and surround rock mass and in vertical depth the study indicates higher concentration of magnetite-Hematite; therefore indicating iron concentrate possibility of approximately 65%.

 

Gary Kouletas, CEO of All Grade Mining, commented, "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 and with the Chilean government enacting favorable new mining legislation we believe that we are in the right place at the right time to establish growth for the Company and build shareholder value."

 

The transaction is subject to a number of terms and conditions, including but not limited to, completion of satisfactory due diligence and the execution of a definitive agreement.(Source: MarketWatch)