G4G Resources and Iron Sands Americas will conduct a sample study in an area of 300 square km on the Guatemalan coast.
G4G explained that the study will help forecast the potential commercial value of iron extracted from the coasts.
Basil Botha, CEO of G4G, said: "We hope the extraction operation in these iron sands is easy. The sand will be dredged, processed and are water removed and then loaded onto ships and sent to Asia”.
The Ministry of Energy and Mines extended in six months the license to G4G Resources to explore the iron sands on the pacific shores.
The Ministry of Mines and Energy had granted in April a license to explore an area of 2,492 square kilometers.
Elperiodico.com.gt reports Brasil Botha, CEO of G4G Resources, as saying "... after an evaluation the presence of iron on the beaches of Guatemala was determined, located in an excellent position to meet the rapid growth of iron and steel markets. In terms of comparison, iron beaches in Guatemala are similar to the existing world-class deposits in New Zealand who have supplied steel producers since the seventies."
G4G Resources Limited has already surveyed a 68 kilometer area close to the Port of San José.
In a press release, the company explained that the exploration was conducted along the coastline and in the seafloor, following parallel lines from the coastline.
The extracted material was sent for analysis to several laboratories, mainly those located in Vancouver, Canada. Basil Botha, president and CEO, believes the results are “encouraging”.
Tikal Minerals, G4G and Iron Sands have confirmed that preliminary studies indicate that the exploitation of iron sands is feasible.
Tikal Minerals, which has three exploration licenses, commented that it may be possible to obtain an annual average of 10 million tons of iron, located 10 meters below ground. It is estimated that up to 12% of world iron deposits may be located on Guatemalan soil.
The Director General Mining of Guatemala issued an Off-Shore Reconnaissance License to G4G Resources and Iron Sands Americas.
The license will permit G4G and Iron Sands Americas Limited ("ISA") to conduct a work program to determine suitable areas for the commencement of an iron sands exploration program.
Guatemala's west coast extends approximately 250 kilometers.