According to the company, the host structure has been estimated, through surface mapping and sampling, to be at least 40m wide, 1.5km in length and open in all directions.
Surface grab samples returned assays ranging from 62.0% to 68.9% iron ore, Tara said.
The agreement gives the company the right to mine the Champinon property for a period of ten years and has an automatic renewal clause upon expiration.
Tara will pay the concession holder a royalty of $5, plus any value added tax, for each ton of material sold.
The company said it can initially reach production rates of a minimum of 30,000 tonnes per month, scaling up to over 50,000.
