AUXICO holds mineral and surface rights to the Minastyc Property located in the municipality of Puerto Carreño, along with a mining production permit awarded by National Mining Agency of Colombia (ANM), and is now in process with the formal purchase of the Minastyc Property. On April 12, 2023 the Company received approval of the Environmental Impact Assessment study (“EIA”) for its Minastyc Property, from the Colombian Environmental Authority, the Regional Autonomous Corporation of the Orinoquía (Corporinoquia). This approval of the EIA follows the authorization of the Company’s work plan by the National Mining Agency (ANM), and automatically grants the Company a small-scale mining permit (300 tonnes per month) for Minastyc by the ANM.

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RARE EARTHS IN COLOMBIA

 

AUXICO has made a significant rare earth discovery of total rare earth oxide content of 56.81%, due to a historical asteroid impact point in close proximity ~150 km from the property, with asteroid mineralization rich of REE extending past Puerto Carreño. Subsequent to  a  sampling program of  23  pits, our samples were sent to and analyzed by Coalia Research Institute in Thetford Mines, Canada. Test results on a sample from a separate pit on the property resulted in 47% tin content, plus tantalum, niobium, scandium and rare earth metals. This results from a satellite imagery interpretation study which identified in excess of 20 priority exploration targets in the process of being sampled.

 

AUXICO acquired the surface rights to 1,482 hectares of land between two adjoining properties; Agualinda and the Mynastic property. The properties are located within a strategic area designated by the Colombian Government for its potential for tantalum, niobium and rare earths. Currently, a systematic initiative of digging ~250 pits using shovels is being executed via a grid system.

 

Subsequent discoveries adjacent to the Company-controlled property; at a distance of 1.6 km from the initial discovery with total rare earth content of 55.03% in concentrates, confirming the presence of a host of rare earth minerals along this mineralized zone; and the discovery of high-grade rare earth minerals within the 20,000-hectares of neighbouring indigenous communities dedicated to artisanal mining activities, for reference, please see on the right Sample 2 with a total rare earth oxide content of 63.21%. Following the environmental assessment and approvals, the Company would have the capacity to sell up to 300 tonnes of RE concentrates per month from its Minastyc property. 

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HIGH-VALUE METAL DISCOVERY, INCLUDING IRIDIUM

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Gold, platinum, titanium, zirconium and hafnium test results on samples taken from the Company-controlled Minastyc property in the department of Vichada, Colombia (NI43101 will be conducted to provide evidence):

• Within the first meter from surface, 14 samples from these areas gave an average head grade of 9.5 grams of gold, and 13.5 grams of platinum (from 8 of the 14 samples that returned grade). The presence of thorium has not been observed within the top meter;

• Discovery of 24.5% titanium, 7.8% zirconium, and 2.4 kilograms of hafnium - results from fine concentrates taken at various sample points;

• Observations in the field estimate a minimum of 250,000 tonnes of material is represented by a Ferricrete layer in the first metre from surface, over surface area of 6.5 hectares;

• A satellite imaginary study confirms an area of ~150 hectares with the identical signature as Area 50. Assuming that the new targets contain the same grades of mineralization as identified in Area 50, the projected mineralization would equate to 10,000,000 tons of material, if evaluated under the same conditions of the 6.5 hectares findings. The Company could potentially hold 10,000,000 tons at 17 g/t Au Eq = potential to host ~6 million ounces of Au Eq at surface, without any drilling. The rare earth content has been identified in layers of mineralized below the surface layer;

• Previous samples from the property contained high-grade titanium rock sample, with 42.85% titanium, 25.44% niobium, 8.28% tantalum and 53.53 g/t of iridium. Samples found in a different zone on the property, originating from a rock sample containing 30.41% tantalum, 23.30% niobium and 24.47 titanium. 

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TIN DISCOVERY AND TRADING

 

AUXICO has signed a joint-venture agreement for high-grade tin trading operations in Colombia, which provides the Company with a 70% profit share on all sales of tin ore executed with Gracor S.A.S. (“Gracor”). This agreement represents a significant amount of tin and potentially a new source of sustainable revenue for the Company, with the objective of exporting a minimum of 100 tonnes per month of high-grade tin at average grades exceeding 65% tin content. The 3-month bid price of tin per tonne is ± US$18,400 on the LME, effective October 26th, 2022.

 

Gracor’s principal business is the purchase of tin from the indigenous population in the state of Vichada, Colombia. Gracor is purchasing ore rich in tin content, sourced from and hosted in alluvial sands on surface, on properties in close proximity to Auxico’s Minastyc Property. Auxico will be providing Gracor with the working capital to increase its direct purchases and will sell tin according to international standards. 

 

• Reported June 2021: discovery of a high-grade tin-tantalum target area on Minastyc Property (titanium, niobium, scandium and hafnium credits) that has been subject to pit sampling (Table 1). 

• Samples previously taken from the tin-tantalum target area were the result of pan concentration and screening, and were sent to Canada for analysis by Coalia Research Institute in Thetford Mines. Previously announced samples from pits on the Company-controlled property displayed test results of 33.75-62.13% tin content, inferring the development potential of a major tin operation in Colombia (Table 1).

• A series of tests including magnetic gravity and optical separation on the above samples to produce separate concentrates of tin, tantalum, scandium and hafnium in order to optimize the value of each concentrate.