BELLINGHAM, Wash., Sept. 20, 2007 (PRIME NEWSWIRE) -- Chanaral Resources Inc. (Pink Sheets:CRLR) (Frankfurt:BYH) is pleased to announce that it has signed a Farm-in agreement with Hanwell Chile, SA to acquire an undivided 80% interest in 4 patented mining claims covering approximately 5 square miles and located on the prolific Atacama Fault near the town of El Salado, Chile.
The claims are well situated on the Atacama Fault Zone, which is a major structure that is important to the localization of several very large iron oxide copper-gold (IOCG) deposits within the copper-iron belt of Coastal Chile. Several successful mines are located within 100km of the property and the claims are bordered by properties owned and operated by some of the largest mining companies in the world such as BHP-Billiton, Anglo American, and Southern Copper- Grupo Mexico.
The property is easily accessible via 6 miles of improved gravel road, which connects to the International Pan American highway near the town of El Salado. From this point it's a short drive of 20 miles to the deep-water port at Boquito for ocean transport. Due to the high amount of mining activity in the area, there is also an ample supply of experienced labour and mining equipment available at very reasonable costs.
In the past the property was drilled for copper but quantities were small, however significant amounts of Iron were found but no further work was completed due to the very low prices for Fe at the time. The company intends to commence an exploration program in the next few months to further delineate the extent of the Fe deposits.
Mr. Jan Olivier, President and CEO of Chanaral Resources commented, "The company intends to initiate a work program to verify the quantity, grade, metallurgy, and ultimately the financial feasibility of economically producing and shipping the ore to the market. Efforts have already begun to acquire the necessary personnel and capital resources required to identify the metallurgical characteristics and begin development on what appears to be a world class Fe deposit."
With the price of iron ore hovering at around USD$150 a ton, and demand increasing while supply dwindles, many experts predict that the price will continue to rise by as much as 30% next year. China, which makes a third of the world's steel, may raise output by 15 percent to 490 million tons this year, the National Development and Reform Commission, the country's top planning agency, said this month. China overtook Japan as the largest buyer of iron ore in 2003 as it increased production of cars, buildings and appliances.
About Chanaral Resources:
Chanaral Resources, Inc. (http://chanaralresources.com/) is an early stage U.S. based junior resource exploration, company. The company's strategy is based on acquiring properties that have shown potential for further exploration and development. The company utilizes a team of resource industry experts to locate and verify mining properties that through previous exploration and test results have warranted future development. The company's objective is to become a major player in the global mining and resource industry.
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