Previous Iron Ore Production

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Historically, the grade of iron ore concentrat produced at Cehegín was in excess of the standard 62% iron based on production up to 1985. The previous operators – Altos Hornos de Vizcay S.A. report of 1982 states that during the quarter of 1975 and throughout 1976, the operation produced magnetite concentrate with an average grade of 65.15% with low penalizing impurities. If the same quality concentrates can be produced, this will attract a premium price and wider markets.