Member Info for Dcat80

Obelix - good to hear from you, better busy than bored!
BF- sounds nice, I’d hope to do a couple of day trips to some of the islands when I’m there. Aegean Sea is beautiful! Hope you do manage to mane it out there for a break

No plans to stop, just don’t usually post here for sake of. Not been much going on though other than SP action and you don’t need me to see that!

Been a few articles highlighting China keen to invest in iron projects to help with supply and not unexpectedly reduce their import from Australia if possible bearing in mind their political spays at present. Brazil a favoured investment for them. Won’t do any harm to us when discussing offtaker agreements! Adds even more likelihood to offtaker advance with additional discount to spot to get us up and running when we are ready

BF - another few weeks in Greece would do me the world of good, but I’ll probably wait until after my second vaccination shot when hopefully Greece will be green for travel.

Should know by now I’m much more active on Twitter, lse has number of flaws which I had great satisfaction in telling them in their recent questionnaire sent to premium members!

Rodders- it takes a lot more work to prove economics on a complex process such an benefication of Tio2 using a chemical plant than to prove economics on a simple iron and vanadium concentrate. As I’ve stated CAPEX for this would be well outside our own means so either a later stage or partner would be required.

The thread already covers grade comparison with some of the UK listed minerals sands companies. However perhaps the best indicator of the Tio2 potential is to listen to the last 2 minutes of this interview by Largo CEO.

https://www.proactiveinvestors.co.uk/companies/news/914235/largo-resources-ceo-talks-growth-plans-for-its--high-production-low-cost--maracs-menchen-mine-914235.html

As you’ll see the operators of the highest grade vanadium mine are saying their 13% Tio2 in tailings (non magnetic ore) will be as important to them as their vanadium. Our grade is 33.75%. The economics on our Tio2 will be exceptional, of that I have no doubt, when company is in a position to advise is another matter

Last year, ANM launched an electronic system for mineral exploration permits. With the new system, requests are processed within an average of 34 days compared to 728 days previously.
https://www.bnamericas.com/en/news/brazil-mining-regulator-opens-public-hearing-on-exploration-permits

Previous guidance for TM approval was 3-6mths (see the shareholder Q&A RNS). Since then Luis was involved in changes to allow monetizing of multiple commodities for starters (such as iron and vanadium...) the changes also make the process faster as per the announcement in October 2020 (see Swizz tweet at the time)

https://twitter.com/swiizz/status/1322103600416514048?s=21

Will be interesting to see just how much the changes made reduce the 3-6month guidance provided prior to the TM approval process.

BF- you beat me to it with a different article! Less than 2months CAPEX payback at these prices. Should be almost no doubt financing will be interesting easily obtained by offtaker.

With our BOD member and 21% shareholder Luis having put together our TM application after changing the process in his other role of VP of Brazil mining regulator I’m very confident this will be approved.

It’s no wonder at the end of his recent tweet video he said “I’m sure we will hear a lot of good things about pitombieras and Jangada in the next few months”.

https://twitter.com/jangadamines/status/1371400909704605699?s=21

https://www.marketwatch.com/story/iron-ore-prices-hit-record-high-with-appetite-for-steel-far-beyond-expectations-11620320569

All- can we give the BOD at least some credit :)

At circa 15 times value if gold and ADDITIONAL credits even small amount of rhodium will add to the economics at Pedra Branca. Our holding in Valore no longer as relevant as it once was in size and in relation to our MC, however still has some relevance and I know few holders here with funds and access to the TSX-V exchange have direct holdings. It’s certainly a project I still love

https://www.juniorminingnetwork.com/junior-miner-news/press-releases/544-tsx-venture/vo/98708-valore-provides-update-on-rhodium-assay-program-at-pedra-branca-pge-project-all-targets-and-deposits-return-rhodium-mineralization-highlights-of-1-44-and-1-37-g-t-rh-from-esbarro-deposit-1-27-g-t-rh-from-cedro-deposit.html

O&W - spot on. To me Brian saying they were even considering fast tracking to a full production method is indicative there has been expressions of interest and discussions with a party that could fund that, it’s clearly outside our own means. However at the same time we are proceeding with the DOS route as this is something we won’t be reliant on a 3rd party providing large capital.

To me it’s two different work streams. Whilst it might be possible to produce a DOS method to a PFS standard I would be pleasantly surprised that we’d find enough testing on full production methods to do a full production report to PFS. Only exception might be If we are considering a route using Fodere groups technology and pilot test plant for such study work. I’m sure fodere do have a pilot plant built, although I have no idea on suitability for our ore or if so whether it would work on the full ore or the non magnetic.

We know they are doing bulk test, exactly what though we don’t know.

I think I’ve said before that the test work may well land before the next economic study as the company have a history of releasing component parts when they can. It is certainly something I hope to see for further clues.

For those not seen elsewhere (Obelix ;) )below is some brief notes I wrote up to explain the basics recently.

The priority at the moment as we know is the DSO route. The below shouldn’t be taken as short term objective, but most here understand they’ll be various stages of development...

Jangada for dummies part 4

Any 3rd party looking at Jangada will be fully aware of the potential.... I would love to see a partner bought in on favourable terms to help expedite a full operation. The project has the potential to exceed the economics of the Hot Maden copper/gold project which is still the best I’ve seen.

Take the time to understand Jangadas project and it should be clear this is a portfolio and life changing investment opportunity. It is however illiquid and no money required in a hurry should be invested in case of low liquidity when needing to be sold. Definitely not something for traders who risk getting bored or nervous on short term SP movements!

Jangada for dummies part 3

So what is the potential for Jangada?

The Pitombieras tenement alone has a 40mt-60mt JORC target.

The Q1 PEA whilst outstanding really is just a tiny part of the potential at pitombieras.
It’s based on the maiden resource of just 5.3mt and as above purely on the magnetic ore.

Q1 PEA headline numbers are
NPV -$106.5m
IRR - 317%
Capex- $9.5m
Payback 3 months

In addition to Pitombieras we have the Mocidade tenement just 3km away.

I also expect additional licence area will be sought in the upcoming Brazil licensing rounds.

It’s clear to see Jangada have a highly commercial project if size just on a simple concentrate route on the magnetic ore alone.

It is however the non magnetic ore which holds the best potential. Pigment grade Tio2 sells for over $3,100. Therefore each tonne of our 33.75% non magnetic ore could bring in over $1,000 in revenue ($3100x 33.75%. At current prices Gold would have to grade over 17g per tonne for 1 tonne ore to be worth $1k.

Whilst any Capex to fully monetize the Tio2 to its full potential would be significant when that ore can be processed to produce $1k revenue per tonne the economics would be incredible.

Jangada for dummies part 2

Ilmenite is more often known to UK investors from minerals sand operations such as Bluejays (JAY) or Capital Metals (CMET), both of which have great grade and decent looking projects. Mineral sands though come from eroded hard rock ilmenite deposits and as such becomes diluted.

Pitombieras has high grade ilmenite for a hard rock deposit and as such grades are multiples of even the best mineral sands as demonstrated below.

Jan non magnetic ore circa 34% Tio2 grade
CMET mineral sand circa 13% Tio2 grade
Jay mineral sand circa 6% Tio2 grade

The extremely high grade Tio2 content at pitombieras also means upgrading it to a pigment grade product of 99% purity is much cheaper. This is a route being pursued by a number of companies with hard rock deposits due to the pricing (ilmenite currently near $310 per tonne, pigment grade $3,100 per tonne).

Jangada for dummies part 1

Little chain for newbies or those in need of refresher on the basics.

The pitombieras project is a district of vanadiferous titanomagnetite (VTM) deposits. As name suggests VTM deposits contain iron, vanadium and titanium dioxide.

VTM deposits vary considerably between each other. Once mined the ore is crushed into small particles some of which are magnetic and some non magnetic.

The proportion of magnetic and non magnetic particles can vary considerably between deposits as can the grades of the commodities within them.

The article below will help explain this well.

https://smallcaps.com.au/investors-guide-understanding-vanadium-deposits/

The composite make up and grade of the VTM deposit will dictate to a large degree how it’s best monetized.

The Pitombieras composite make up can be found in the 26/9/19 RNS and is approximately 60% magnetic particles/40% non-magnetic.

The magnetic particles grade 95% iron ore and 1.25% vanadium.
The non-magnetic contains 33.75% Tio2 (ilmenite has Ti02 content of roughly 50% its approx 67% ilmenite)
The above can also be seen on page 15 of current company presentation with grade comparison to other VTM deposits on page 20.

The commodities that Pitombieras stands out in grade on are Iron ore in the magnetic ore and Titanium Dioxide (ilmenite) in the non magnetic ore.

What are the commercial implications of pitombieras composite make up & grades?

Well we’ve already seen the implications for the magnetic concentrate of iron & vanadium that makes up 60% in the current PEA. The high Iron ore content (95%) provides the option of a saleable concentrate without the need for complex processing. Just mine, crush and put ore through a dry magnetic separation unit. No need for water, acid or heat. This is why a low Capex operation is possible.

For the magnetic ore concentrate we get close to iron ore spot price for each tonne with an additional $30 for the vanadium (based on vanadium pentoxide price of $6.25 per lb). Credits from iron and vanadium mean we aren’t reliant on the price of one commodity and should be profitable at all times in the pricing cycle, exactly what a district scale play needs to be.

What the current PEA doesn’t currently include is monetizing the 40% of the ore that is non magnetic containing 33.75% Tio2 (approx 67% ilmenite).

The non magnetic ore in VTM deposits is often a liability. Operators using a standard wet magnetic separation process will have to maintain tailing dams. Pitombieras on the other hand has highly valuable Ilmenite within the non magnetic ore. So instead of being a liability the non magnetic ore is actually significantly value adding, in fact it should be more valuable than the magnetic ore covered in Q1 PEA.

Believe it was the other work streams have progressed to level it looks like we could do to PFS quality?

Rightly of wrongly I’ve taken that as though bulk sampling appears to be going well and the new guys announced 1st March have been busy on getting quotes etc for plant build etc. In short reducing the assumptions.

Ultimately the economic report in whatever format is mainly of use for financing. Better confidence the easier any offtaker advance discussion would go. PFS definitely an advantage, however iron and vanadium up 20% on PEA prices which skeet’s had just a 3month payback. Risk to any financing agreement is already quite low, as said reducing further would be great, but not as relevant as if large Capex or long pay back period.

I really do see progress towards the TM as more important now. The quicker we can take advantage of current high iron prices (which in PEA contributed over 75% of our concentrate value) the better.

You are not reading it wrong. Holes 147 and 148 are to the north west of pitombieras north and are not testing the ground between PN and Goela. It’s the direction of the deposit, or if you prefer think of the diagonal line to these holes and goela.

Holes 147 and 148 are however outside the highest magnetic reading zone and hit similar monetization, just at a slightly deeper depth.

if the trend line continues then it’s possible that area between goela and the south west of PN is monetized I.e. one connected deposit, but the monetization is slightly deeper. Whether it is connected was something Jangada previously mentioned as being something to test, although priority I suspect is more on shallower materiel at the moment with thoughts on easy trial mining first

Today’s assays are quite interesting. If you look at the map on the RNS you’ll see holes 147 and 148 near the north of the map. Hitting good intervals outside the very magnetic area, but at slightly deeper depth. Could well be a sign we’ve bigger resource and add to the hoe that pitombieras north and goela are connected with intermittent mineralization slightly deeper.

Few decent buys today so hopefully interview has helped highlight the project to a few previously unaware. There has to be a point whoever thinks selling 20% below placing and hitting bid is smart runs out of stock. Won’t be upset to see them out..

Separating ore into separate concentrates could well be the first step in processing further anyway. It is for route neometals are looking at and largo are planning to. Alternatively TNG treat the ore as one. We don’t know method being considered yet, just that benefication adds huge upside!

Fully monetizing the commodities brings the project to a whole new level, obviously terms of bringing in a partner are important but as we’ve the simple concentrate route I.e. aren’t held hostage it puts us in a relatively strong negotiating position. Personally I’d rather see the time we’re discussing SP in terms of £s not pennies sooner rather than later which requires full monetization of the commodities. Bigger partner also provides other benefits such as established sales force with customer base.