AUXICO has signed a JV agreement with Cooperativa Estanifera de Mineradores da Amazonia Legal Ltda (“CEMAL”), for the development of the Massangana tin tailings project with estimated 30,000,000 tonnes of tailings averaging 2.83% total rare earth oxide content i.e. 840,000 tonnes of RE content.

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TIN, TANTALUM, NIOBIUM AND REE IN BRAZIL 

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AUXICO has signed a JV agreement with the Brazilian mining cooperative Cooperativa Estanifera de Mineradores da Amazonia Legal Ltda (“CEMAL”), with regard to the exploitation and commercialization of rare earths from tin tailings deposits located over an area of 18,000 hectares in Massangana, in the state of Rondonia, Brazil. AUXICO and CEMAL finalized the joint venture agreement, terms of which AUXICO could develop their properties in Brazil and benefit from 85% profit share (transaction price of US$2M). These properties have an estimated 30,000,000 tonnes of tin tailings, averaging 2.83% TREO i.e. 840,000 tonnes of rare earth content (based on study prepared by the German Mineral Resources Agency and Geological Survey of Brazil). Data for this estimate has yet to be reviewed and verified by AUXICO’s Qualified Person.

 

Results of metallurgical tests done on samples from the Massangana project concluded;

• Three types of products could be generated from the tin tailings: columbite concentrate containing 34.07% niobium, monazite concentrate containing 37.74% total rare earth oxide (TREO), and cassiterite concentrate containing 54.92% tin;

• Property owners provided the Company with concentrates from the tailings that have been produced by magnetic separation and gravity methods (analyzed by Coalia Research Institute in Thetford Mines, Canada, with the use of XRF X-ray fluorescence) from feed material averaging 2.83% TREO, therefore having a rare earth content in the value of ±US$ 15,000-20,000 per tonne at market;

• Rare earth content in the tailings is in the order of 1,000,000 tonnes; AUXICO has successfully removed the thorium content, making the concentrate non-radioactive and eligible for international shipping. Using the UAEx process, the thorium content in the concentrate was reduced to less than 0.1%;

• Canada Rare Earth Corporation (CREC) has announced investment of R$1.5 billion (~$300M) in Ariquemes, a property adjacent to AUXICO’s property in the Rondonia tin province.

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