Resouro Strategic Metals Metallurgy Update for the Tiros Project
ASX: RAU TSXV: RSM
TSXV Release: ASX Release:
12 August 2024 13 August 2024
Resouro Strategic Metals Metallurgy Update for the Tiros Project
Resouro Strategic Metals Inc. (ASX: RAU; TSX-V: RSM; FSE: 8TX; OTC: RSGOF) ("Resouro" or the "Company") is pleased to announce an update on its metallurgical studies for the Tiros Titanium and Rare Earth Elements Project in Brazil (“Tiros Project” or “Tiros” or “Project”) which marks a significant milestone in the Project’s development. The results from the metallurgical test work below indicate that Resouro, together with its partner Altilium Projects (Australia) Pty Ltd (“Altilium”), have the potential to achieve the highest rare earth extractions known across the industry to date.
Highlights
Following the July 18, 2024 release of the Company’s maiden JORC Mineral Resource Estimate (“MRE”) for the Tiros Project, Resouro has completed the first steps of its metallurgical strategy with its partner, Altilium.
The aim of this metallurgical study was to achieve maximum extractions and recovery of Rare Earth and Titanium minerals, applying Altilium’s patented technology, including acid regeneration with minimal acid loss as well as zero waste.
Altilium assessed an approximately 50kg representative sample, covering five diamond drill holes of the Tiros JORC compliant resource in laboratory conditions and produced the following extraction results:
| TEST | TREY | LREE | MREE | HREE |
|---|---|---|---|---|
| L3 | 80.8% | 81.6% | 96.2% | 74.8% |
Table 1: Metallurgical Extraction using 50kg of representative sample.
President, CEO, Director and Founder, Chris Eager commented:
“Completion of our first stage of the Altilium extraction assessment for the Central Block of the Tiros Rare Earth project marks a pivotal moment for Resouro Strategic Metals and the industry as a whole.”
“These extraction results, combined with the maiden JORC mineral resource estimate, provide our shareholders with confidence that Tiros’ consistently thick, near surface and highly weathered clay-like material has strong potential to produce excellent results and meet the needs of the global demand for stable supply of rare earth critical minerals.”
“Our metallurgical studies will continue the next steps with our partner, Altilium, whilst reviewing options from the more conventional metallurgical study path. This work combined with our infill drilling for mine planning and feasibility and environmental purposes will seek to establish Resouro as a leading rare earth business.”
“Resouro is committed to sustainable practices and positive community engagement, ensuring that our growth contributes to the well-being of the regions in which we operate.”
“Resouro will continue to update the market on progress to completion of our Preliminary Economic Assessment”
About Altilium
Altilium Group Limited (“Altilium Group”), incorporated in England, is the parent company of Altilium Licensing Limited (“ALL”) and Altilium Projects (Australia) Pty Ltd).
Research and development for the Altilium Group is performed in Australia. Altilium Technology may be applied to ore, mining waste or process tailings. The first developed application of Altilium Technology was the Altilium Nickel Laterite Process™ which is designed to process nickel laterite ore. The Altilium Group has subsequently developed the following processes:
- Altilium Bauxite Process™ - to extract metals from bauxite ore;
- Altilium Red Mud Process™ - to re-process bauxite residue (tailings); and
- Altilium Ti/REE Process™ - to extract titanium and rare earth elements from a lateritic ore.
The Altilium Group is proactively researching and developing new applications for its technology with a focus on the extraction of critical metals.
Altilium Group has marked the successful completion of its latest metallurgical testing phase, utilising the proprietary Altilium Ti/REE Process™ on a 50 kg composite sample provided by Resouro. This rigorous testing process, carried out at Core Resources Laboratories in Brisbane, involved air-drying and milling the sample to 0.5mm to analyse its chemical and mineral content. Three leach tests were conducted to understand the metal extractions, with the goal of generating a solution rich in rare earth elements (“REEs”) and a residue enriched with titanium. Notably, the third test, which incorporated a pre-treatment process, achieved the highest rare earth extractions known in the industry to date, demonstrating the effectiveness of Altilium's innovative approach.
Building on these promising results, Altilium Group is now focused on the next phase of development, which involves designing and executing a laboratory-scale test programme to establish the Altilium Ti/REE Process™ flowsheet. The company aims to optimise the process parameters to improve the grades and extraction efficiency of target metals, including titanium, silica, REEs, scandium, iron, and aluminium.
Christopher Gower, CEO of Altilium Group, said, “The recent completion of this “Sighter Test Work” marks a significant milestone for Altilium Group. By applying our proprietary Altilium Ti/REE Process™ (at Core Resources Laboratories), we have achieved unprecedented levels of rare earth extractions, reinforcing our commitment to innovation and excellence in resource processing. This accomplishment not only highlights the potential of our technology but also sets a new benchmark for the industry."
“Looking ahead, our focus is on refining and optimising the Altilium Ti/REE Process™ and our other process flowsheets to maximise the extraction efficiency for the target metals: titanium and rare earth elements in this case; and, alumina, iron, nickel, cobalt, scandium and more in the case of our other flowsheets. Our goal is to continually enhance the grades, yields and extractions to deliver an efficient and profitable flowsheet, positioning Altilium as a leader in sustainable mineral processing solutions."
The Altilium Metallurgical Test Work
The scope for the first stage Altilium test work was aimed at understanding the feasibility of applying the Altilium Ti/REE Process™ technology to Resouro’s samples mainly for the extraction of rare earth elements into solution.
The work involved a composite sample of 50kg, premixed by Resouro, air dried and milled to 100% passing 0.5mm. Chemical and mineralogical analysis was conducted on the head sample. Three optimization sighter leach tests were conducted using nitric acid (HNO3) applying the Altilium Ti/REE Process™ at Core Resources Laboratories in Brisbane to generate Pregnant Leach Solution (“PLS”) and residue. The samples were assayed for aluminium (Al), calcium (Ca), cobalt (Co), chromium (Cr), iron (Fe), gallium (Ga), magnesium (Mg), manganese (Mn), nickel (Ni), sulphur (S), scandium (Sc), silicon (Si), titanium (Ti), and rare earth elements (REEs).
The sighter leach test conditions were assessed as follows:
- L1 test involved leaching at the standard acid concentration used in the Altilium Ti/REE Process™.
- L2 test involved leaching at high concentration of acid.
- L3 test involved a pre leach heat treatment process and leaching at the standard acid concentration used in the Altilium Ti/REE Process™.
In all these tests, REE metal extractions, acid consumptions and residue compositions were measured with the summary of extraction of the REE noted below.
| TEST | TREY | LREE | MREE | HREE |
|---|---|---|---|---|
| L1 | 69.3% | 69.3% | 72.5% | 73.8% |
| L2 | 59.8% | 59.8% | 63.8% | 62.5% |
| L3 | 80.8% | 81.6% | 96.2% | 74.8% |
Table 2: Metallurgical Extraction using 50kg of representative sample under the three test conditions.
Notably, the titanium dioxide (“TiO2”) contained in the sample reported between 2.5 – 4.5% in the PLS with the remaining pleasingly not reporting to the PLS indicating a strong possibility of TiO2 recovery by traditional metallurgical recovery methods from the residue.
The representative samples were taken from the Tiros central project area over four tenements which are the subject of the recent maiden JORC MRE announcement by Resouro dated July 18th, 2024.
Figure 1: Plan view of the Tiros project tenements including the central blocks highlighted and covered in the Maiden JORC MRE announcement and the subject of this metallurgical results announcement.
Proposed Future Works
Following this announcement, Resouro will commence the second phase of the Altilium test work. This work includes testing the representative Resouro sample with the Altilium Ti/REE Process™ technology flowsheet. This work will also include separating the TiO2, and zircon, niobium and phosphate potential from the leach/residue by various beneficiation processes. In addition, the following tasks will be undertaken:
- In-fill drilling to work towards delineating a potential JORC compliant reserve;
- Further metallurgical test work programs with preferred laboratory partners to optimise REE extraction and TiO2 recovery under typical conditions;
- Undertake a Scoping Study with Engineering Procurement and Construction Management (“EPCM”) partner and other subject matter experts;
- Complete a Preliminary Mining and Environmental Baseline survey and studies to submit bulk mining approvals and work towards a pilot project; and
- Downstream studies and product testing to align the metallurgical flow sheet with potential future offtake partners.
Competent Person Statement
The information in this announcement that relates to the Metallurgical Results is based on, and fairly represents, information compiled by Mr Sravan Maddipati a Competent Person and registered professional Metallurgist (MAUSIMM #323008) with experience in metallurgy, metallurgical studies and operations and experience in rare earth element extraction. Mr Maddipati is an employee of Altilium and has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify him as a Competent Persons as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves.
Mr Simon Mortimer, a Competent and Qualified Person and registered professional geologist (FAIG #7795) with experience in geology, mineral exploration, geological modelling, mineral resource estimation and classification, and database management. Mr Mortimer is a consultant for Atticus Geoscience and has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify them as Competent Persons as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’ and as Qualified Person under the National Instrument 43-101 Standards of Disclosure for Mineral Projects. Mr Maddipati and Mr Mortimer consent to the inclusion of this information in this announcement of the matters based on his information in the form and context in which it appears.
The information in this announcement that relates to Exploration Targets, Exploration Results and Mineral Resources is based on, and fairly represents, information compiled by Mr Luis Oviedo. Mr Oviedo is a consultant for Atticus Geoscience and has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify him as Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Certain information in this announcement is extracted from the ASX announcement titled "Resouro Strategic Metals Maiden JORC Resource for the Tiros Project" dated 18 July 2024 that relates to Exploration Targets, Exploration Results and Mineral Resources and is based upon information compiled by Mr Luis Oviedo. The Company confirms that it is not aware of any new information or data that materially affects the information included in the ASX announcement and, in the case of Exploration Targets, Exploration Results and Mineral Resources, that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. The Company confirms that the form and context in which Mr Oviedo's findings are presented have not materially been modified from the original market announcement. Mr Luis Oviedo consents to the inclusion of this information in this announcement of the matters based on his information in the form and context in which it appears.
This announcement has been authorized for release by the Board of Directors.
Contact Information:
Chris Eager, CEO Justin Clyne, Director Melissa Hamilton, Media & Capital Partners, Director [email protected] [email protected] [email protected] +44 7388 0579809 +61 407 123 143 +61 417 750 274
About the Company
Resouro is a Canadian incorporated mineral exploration and development company, listed on the ASX, TSXV, OTC and FSE, focused on the discovery and advancement of economic mineral projects in Brazil, including the Tiros project in Minas Gerais and the Novo Mundo Gold Project in Mato Grosso. The Tiros project represents 25 mineral concessions totalling 450 km2 located in the state of Minas Gerais, one of the most infrastructurally developed states of Brazil, 350 km from Belo Horizonte, the state capital. Resouro has released a Mineral Resource Estimate for the Tiros Project of 1.7 bn tonnes of Inferred, Indicated and Measured Resource as announced to the ASX on 18 July 2024 (TSXV 17 July 2024) and is based on the JORC Compliant Technical Report prepared by Mr Simon Mortimer and Mr Luis Oviedo of Atticus Geoscience, as follows:
| DOMAIN | CAT | TONNES (t) | TiO2 (%) | TREO (ppm) | MREO (ppm) | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| HG (High Grade) | Inferred | 42,000,000 | 23 | 8,700 | 2,200 | ||||||
| Indicated | 55,700,000 | 23 | 9,030 | 2,380 | |||||||
| Measured | 20,800,000 | 24 | 9,320 | 2,530 | |||||||
| Sum | 120,000,000 | 23 | 9,000 | 2,400 | |||||||
| MG (Medium Grade) | Inferred | 620,000,000 | 11 | 3,500 | 950 | ||||||
| Indicated | 704,000,000 | 11 | 3,650 | 1,020 | |||||||
| Measured | 224,000,000 | 11 | 3,570 | 997 | |||||||
| Sum | 1,500,000,000 | 11 | 3,500 | 930 | |||||||
| Sum | 1,500,000,000 | 11 | 3,500 | 930 | |||||||
| Totals | 1,700,000,000 | 12 | 3,900 | 1,100 |
Note: Further details of the Company’s Maiden JORC MRE are contained within the Company’s announcement of 18 July, 2024.
Forward-Looking Information
This announcement contains certain "forward-looking information" within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Although we believe that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. We cannot guarantee future results, performance or achievements. Consequently, there is no representation that the actual results achieved will be the same, in whole or in part, as those set out in the forward- looking information.
Forward-looking information is based on the opinions and estimates of management at the date the statements are made and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking information. Some of the risks and other factors that could cause the results to differ materially from those expressed in the forward-looking information include, but are not limited to: general economic conditions in Canada and globally; industry conditions, including governmental regulation and environmental regulation; failure to obtain industry partner and other third party consents and approvals, if and when required; the need to obtain required approvals from regulatory authorities; stock market volatility; liabilities inherent in the mining industry; competition for, among other things, skilled personnel and supplies; incorrect assessments of the value of acquisitions; geological, technical, processing and transportation problems; changes in tax laws and incentive programs; failure to realize the anticipated benefits of acquisitions and dispositions; and the other factors. Readers are cautioned that this list of risk factors should not be construed as exhaustive.
The forward-looking information contained in this announcement is expressly qualified by this cautionary statement. We undertake no duty to update any of the forward-looking information to conform such information to actual results or to changes in our expectations except as otherwise required by applicable securities legislation. Readers are cautioned not to place undue reliance on forward-looking information.
Neither the ASX, TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
APPENDIX 1: JORC Table 1 JORC Code, 2012 Edition – Table 1 Report TIROS REE+Ti PROJECT – METALLURGY UPDATE Section 1 Sampling Techniques and Data
(Criteria in this section apply to all succeeding sections.)
| Criteria | JORC Code explanation | Commentary | |
| Sampling • Nature and quality of sampling (e.g. cut • Samples were taken from the diamond drill hole. The sampling intervals were chosen based techniques channels, random chips, or specific on geological description during drill core logging. One quarter of selected stored core specialized industry standard measurement samples was taken, completing a bulk sample of `50kg, representative of the full tools appropriate to the minerals under mineralization. The samples were taken according to industry standard procedures. investigation, such as down hole gamma sondes, or handheld XRF instruments, etc.). • Measures to ensure the metallurgical sample representativity included selection of diamond These examples should not be taken as drill core to represent the mineralization, given the higher recovery of this type of drilling, the limiting the broad meaning of sampling. selection using a random method, to avoid bias and the comparison of the grade for TiO2% and TREO ppm between the mineral resource published and the calculated grade of the • Include reference to measures taken to metallurgical sample. Geology was also taken into account, though the usage of the main ensure sample representativity and the lithologic units present in the mineralization, which are the strongly oxidized material (SOX) , appropriate calibration of any measurement with 54% of the sample, and moderately oxidized material (MOX), with 46% of the sample. tools or systems used. • Aspects of the determination of mineralization • Discussed in the Mineral Resources declaration, published at ASX in July 18th, 2024. The that are Material to the Public Report. In geology and grades reported in this declaration were reproduced in the metallurgical sample, cases where ‘industry standard’ work has in order to reproduce the mineral deposit. been done, this would be relatively simple (e.g. ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverized to produce a 30 g charge for fire assay’). In other cases, more explanation may be required, such as where there is coarse gold that has inherent sampling problems. |
Metallurgy Update – Project Tiros Page 10 / 19
| Criteria | JORC Code explanation | Commentary | |
| Unusual commodities or mineralization types (e.g. submarine nodules) may warrant disclosure of detailed information. | |||
| Drilling • Drill type (e.g. core, reverse circulation, open- MRE - Diamond drilling techniques hole hammer, rotary air blast, auger, Bangka, 2011 2023-2024 sonic, etc.) and details (e.g. core diameter, Vicenza Resouro Strategic Total Metals triple or standard tube, depth of diamond tails, TOTAL HOLES 1 32 33 face-sampling bit or other type, whether core TOTAL DEPTH (m) 82.45 2285.65 2368.1 is oriented and if so, by what method, etc.). TOTAL SAMPLES 64 1515 1579 TOTAL SAMPLES (m) 74.6 1515.5 1590.1 • All holes were vertical and with depths below 100m, no trajectory measures were taken in the holes. • All diamond drilling was performed using HQ (63.5 mm diameter). | |||
| Drill sample • Method of recording and assessing core and • The diamond drilling recovery consisted of verifying runs and recoveries recorded in the core recovery chip sample recoveries and results assessed. boxes with verification by measuring the core present in the boxes with tape measure. The recovery control of the drilled material is carried out for auger and aircore holes by comparing its weight with the theoretical weight calculated from bibliographic density values. • Measures taken to maximize sample recovery • Due to the soft nature of the material being drilled, no geotechnical logging was carried out, and ensure representative nature of the however it was noted that the core drilling gave good recovery. samples. • Whether a relationship exists between sample • Not applied because the core recovery data is not registered in the drill hole database. recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material. | |||
| Logging • Whether core and chip samples have been • Not applicable geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies. • Whether logging is qualitative or quantitative • Geotechnical descriptions were not carried out. in nature. Core (or costean, channel, etc.) • Geological description consisted of defining weathering levels, mineralogy, and lithology The photography. author observed the photographs of the drill core with random representatives shown below. |
Metallurgy Update – Project Tiros Page 11 / 19
Criteria JORC Code explanation Commentary
Metallurgy Update – Project Tiros Page 12 / 19